The Bonterra Energy Corp. logo is shown in this undated handout photo. THE CANADIAN PRESS/HO - Bonterra Energy Corp.

Bonterra Energy CEO says end of takeover battle with Obsidian comes as a relief

Bonterra Energy CEO says end of takeover battle with Obsidian comes as a relief

CALGARY — The chairman and CEO of Bonterra Energy Corp. says he’s relieved that rival Obsidian Energy Ltd. ended its hostile takeover campaign this week after seven months of trying to persuade investors to accept a share-swap deal.

George Fink says that despite feeling “animosity” from some of the criticisms sent his way during the lengthy campaign, he is still willing to work collaboratively with Obsidian and, in fact, the companies share ownership of some oil and gas properties.

The latest extension of Obsidian’s offer to swap two of its shares for each Bonterra share closed on Monday with interim CEO Stephen Loukas explaining it would not renew its bid because the economic environment had changed.

In an interview on Wednesday, Fink said his company is returning to its traditional role as a producer of just over 10,000 barrels of oil equivalent per day that spends to maintain production and pay down debt while providing a steady flow of dividends to shareholders.

The 81-year-old, who with his wife holds about 15 per cent of the shares of the company he founded in 1998, says he’s optimistic given recent oil price strengthening and a drilling program that has allowed Bonterra to increase output to about 13,000 boe/d from 10,500 boe/d at year-end.

He says Bonterra’s short-term goal is to pay down debt and then reinstate the dividend it suspended last year as oil prices plummeted amid a demand drop blamed on the affects of pandemic lockdowns.

“It’s really a relief to be rid of that (takeover offer),” Fink said, adding he thought Obsidian’s debt and well abandonment liabilities were too large to make it a good match with Bonterra.

“We don’t feel like we need to grow. Our shareholders just want to go back to getting a cheque every month, or at least every quarter.”

This report by The Canadian Press was first published March 31, 2021.

Companies in this story: (TSX:BNE, TSX:OBE)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The length of grass on people’s lawns could be part of the new Community Standards bylaw being considered by Red Deer city council. (Black Press file photo).
Loitering, noise complaints, swearing covered in proposed bylaw

A few old rules could be dropped and new rules added

Heather Buelow, owner of Aerial Edge Studio in Blackfalds, says she has spent all of her savings to keep the studio going through government-mandated shutdowns during the COVID-19 pandemic. (Contributed photo)
Either open in-person or close permanently: Central Alberta yoga studio defying rules

A central Alberta woman is allowing clients back into her traditional and… Continue reading

Sweden skip Niklas Edin makes a shot against Scotland in the Men's World Curling Championship gold medal final in Calgary, Alta., Sunday, April 11, 2021. Curling's Humpty's Champions Cup in Calgary has been pushed back a day due to the delayed finish of the men's world championship. THE CANADIAN PRESS/Jeff McIntosh
Start of Humpty’s Champions Cup pushed back a day in Calgary

Start of Humpty’s Champions Cup pushed back a day in Calgary

Men’s world curling championship in Calgary concludes amid COVID scare

Men’s world curling championship in Calgary concludes amid COVID scare

New York Yankees starting pitcher Gerrit Cole throws against the Toronto Blue Jays during the first inning of a baseball game Monday, April 12, 2021, in Dunedin, Fla. (AP Photo/Mike Carlson)
Higashioka and Cole help Yankees beat Blue Jays 3-1

Higashioka and Cole help Yankees beat Blue Jays 3-1

Alberta doctors say trust must be rebuilt after proposed new labour deal rejected

Alberta doctors say trust must be rebuilt after proposed new labour deal rejected

People line up in the rain for a COVID-19 vaccine at a pop-up clinic at the Masjid Darus Salaam in the Thorncliffe Park neighbourhood in Toronto on Sunday, April 11, 2021. THE CANADIAN PRESS/Frank Gunn
Provinces defend health restrictions as COVID-19 cases and hospitalizations rise

Provinces defend health restrictions as COVID-19 cases and hospitalizations rise

Alberta Premier Jason Kenney updates media on measures taken to help with COVID-19, in Edmonton on March 20, 2020. THE CANADIAN PRESS/Jason Franson
Alberta legislature Speaker apologizes for condemning new COVID health restrictions

Alberta legislature Speaker apologizes for condemning new COVID health restrictions

Ukraine’s leader requests a talk with Putin, gets no answer

Ukraine’s leader requests a talk with Putin, gets no answer

Madelyn Boyko poses along with a number of the bath bombs she makes with her mom, Jessica Boyko. Madelyn says she enjoys making the bath bombs with her mom as it is a special time for just the two of them. (Photo Submitted)
5-year-old Sylvan Lake girl selling bath bombs in support of younger brother

Madelyn Boyko is selling bath bombs for CdLS research in honour of her younger brother

Most Read