BONTERRA ENERGY : REPORTS FIRST QUARTER 2022

For the three months ended March 31, 2022

TSX: BNEwww.bonterraenergy.com

BONTERRA ENERGY REPORTS FIRST QUARTER 2022

FINANCIAL AND OPERATING RESULTSHIGHLIGHTS

As at and for the three months ended ($000s except $ per share) FINANCIAL

March 31, 2022

December 31, 2021

March 31, 2021

Revenue - realized oil and gas sales Funds flow(1)

91,542

79,202 48,794

47,092

36,488 16,592

Per share - basic

1.34

1.07 0.50

Per share - diluted

1.28

1.03 0.50

Cash flow from operations

40,942

37,868 14,745

Per share - basic

1.16

1.11 0.44

Per share - diluted Net earnings (loss)

1.11

1.07 0.43

10,519

16,333 (1,684)

Per share - basic

0.30

0.48 (0.05)

Per share - diluted

0.29

0.46 (0.05)

Capital expenditures Total assets

32,169

17,636 23,461

965,969

• 945,721 748,543

  Net debt(2) Bank debt Shareholders' equity OPERATIONS

  260,670

• 267,179 328,506

  138,384

• 162,945 238,865

  405,148

• 392,019 195,393

Light oil

NGLs

-bbl per day -average price ($ per bbl) -bbl per day -average price ($ per bbl)

7,356

7,659 6,834

110.41

85.04 61.76

996

1,105 1,025

63.02

54.54 35.60

Conventional natural gas -MCF per day -average price ($ per MCF)

29,609

30,276 24,301

4.80

4.93 3.44

Total barrels of oil equivalent per day (BOE)(3)

13,287

13,810 11,909

• (1) Funds flow is not a recognized measure under IFRS. For these purposes, the Company defines funds flow as funds provided by operations including proceeds from sale of investments and investment income received excluding the effects of changes in non-cash working capital items and decommissioning expenditures settled.

• (2) Net debt is not a recognized measure under IFRS. The Company defines net debt as current liabilities less current assets plus long-term subordinated debt and subordinated debentures.

• (3) BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

REPORT TO SHAREHOLDERS

Bonterra Energy Corp. (Bonterra or the Company) is pleased to present our operating and financial results for the three month period ended March 31, 2022. Readers are encouraged to review in conjunction with the Company's full Q1 2022 report which has been filed on SEDAR and is available on Bonterra's website.

Bonterra benefitted from significantly stronger commodity prices in Q1 2022 as global supply and demand dynamics created a positive tailwind for pricing. As a result, higher netbacks complemented by a successful drilling and completions program have led to improved quarterly sales revenue, funds flow and free funds flow, which could be directed towards further improving Bonterra's leverage profile. These results have strategically positioned the

Company to continue pursuing the ongoing profitable development of our high-quality, light oil weighted asset base.

FINANCIAL & OPERATING HIGHLIGHTS

• • Production averaged 13,287 BOE per day in Q1 2022, 12 percent higher than Q1 2021, reflecting an active drilling program along with the continued reactivation of wells that were previously shut-in voluntarily due to low commodity prices.

• • Revenue from realized oil and gas sales totaled $91.5 million in Q1 2022, an 88 percent increase over Q1 2021 and 16 percent higher than Q4 2021, due primarily to significantly improved commodity prices that drove strong netbacks coupled with a strong production profile.

• • Generated funds flow1 of $47.1 million in the quarter ($1.28 per diluted share), an increase of 184 percent over Q1 2021, and 29 percent higher than the preceding quarter.

• • Generated funds flow1 in excess of capital expenditures ("free funds flow"1) of $14.9 million in Q1 2022 which was largely directed to debt repayment.

• • Realized average field netbacks1 of $44.97 per BOE in Q1 2022, representing an increase of 83 percent over Q1 2021 and a 30 percent increase from the preceding quarter, primarily reflecting significantly higher per unit revenue offset by realized losses on risk management contracts, increased per unit royalty expenses and production costs.

• • Capital expenditures totaled $32.2 million in Q1 2022, with $25.6 million directed to the drilling of 12 gross (11.8 net) operated wells and the completion, equip and tie-in of 11 gross (10.8 net) operated wells, with six of the completed and equipped wells having been drilled late in 2021. Five (5.0 net) of the remaining wells drilled in Q1 2022 were placed on production in Q2 2022. The balance of the capital was allocated to related infrastructure, recompletions and non-operated capital programs.

• • Drilling, completion and equipping costs per well increased 27 percent in Q1 2022 compared to Q1 2021 due largely to supply chain issues, higher inflation rates, and labour shortages as the demand for drilling and completion services increased alongside commodity prices.

• • Achieved a 15 percent reduction in quarter-end bank debt to total $138.4 million compared to year-end 2021, largely as a result of the Company's increased funds flow, while net debt1 decreased by two percent to total $260.7 million. Bonterra's net debt to twelve-month trailing cash flow ratio1 at quarter-end improved to 2.1 times compared to 2.8 times at year-end 2021.

• • Demonstrated the Company's ongoing focus on environmental initiatives by successfully abandoning 51.2 net wells, 12.0 net pipeline segments and decommissioned 2.0 net battery sites with support from the Alberta Site Rehabilitation Program. Throughout 2022, a further 79.8 net wells and associated pipelines that have no further economic potential are targeted for abandonment.

1 Non-IFRS measure. See advisories later in this report.

Production averaged 13,287 BOE per day for the first three months of 2022, an increase of 12 percent over Q1 2021 despite temporary shut-ins due to gas processing capacity limitations. These limitations are expected to be mitigated going forward by the commissioning of a wholly-owned gas plant, which has a scheduled on-stream date in May 2022. When compared to Q1 2021, the increase in production was the result of our active drilling program which delivered new volumes into a strong commodity price environment along with the reactivation of wells that were previously shut-in due to low commodity prices.

Bonterra invested total capital expenditures of $32.2 million in the first quarter of 2022, representing approximately half of our anticipated annual capital program. We intend to continue investing capital for incremental growth initiatives to support increased free funds flow1 generation that can be allocated to further reducing outstanding bank debt and balance sheet improvements.

A strong commodity price environment was leveraged throughout the quarter, contributing to the generation of $47.1 million of funds flow1 and $14.9 million of free funds flow1 during the period. In Q1 2022, Bonterra realized average oil prices of $110.41 per bbl, average NGL prices of $63.02 per bbl, and average natural gas prices of $4.80 per mcf, representing increases of 79 percent, 77 percent and 40 percent, respectively, compared to the same period in 2021. With stronger prices and higher revenues, the Company's Q1 2022 field and cash netbacks1 increased 83 percent and 154 percent, respectively, compared to the same period in the prior year, averaging $44.97 per BOE and $39.38 per BOE, respectively.

OUTLOOK

Based on a successful first quarter of 2022, we are pleased to reaffirm our previously announced 2022 production guidance of 13,300 to 13,700 BOE per day2 based on a capital expenditure budget range of $55 million to $65 million. With a strong first quarter and the remaining 2022 capital program, the Company estimates $100 million of free funds flow1 for fiscal 2022 (assuming US$70 WTI price for the remaining three quarters), which is expected to drive continued improvement in leverage metrics.

With a stronger financial and operating position combined with a proven track record of operational execution,

Bonterra remains focused on generating long‐term returns for shareholders while prioritizing economic and environmental sustainability. Today, our stable and high-quality production base is realizing strong oil prices and enhanced netbacks, driving robust funds flow. With our focus on cost control and capital efficiencies, Bonterra plans to continue generating free funds flow that can be directed to ongoing balance sheet strengthening, ultimately supporting our goal of returning capital to shareholders. Bonterra remains committed to employing local services, being a key economic contributor to rural and surrounding communities located within central Alberta, upholding a responsible abandonment and reclamation program, and maintaining rigorous safety measures.

George F. Fink

Chief Executive Officer

2 2022 volumes expected to be comprised of 7,320 bbl/d light and medium crude oil, 1,320 bbl/d NGLs and 29,200 mcf/d of conventional natural gas based on a midpoint of 13,500 BOE/d.

MANAGEMENT'S DISCUSSION AND ANALYSIS

The following report dated May 10, 2022 is a review of the operations and current financial position for the three months ended March 31, 2022 for Bonterra Energy Corp. ("Bonterra" or "the Company") and should be read in

conjunction with the unaudited condensed financial statements and the audited financial statements including the notes related thereto for the fiscal year ended December 31, 2021 presented under International Financial Reporting Standards (IFRS), as well as Bonterra Annual Information From ("AIF"), each of which is filed on SEDAR atwww.sedar.com

Use of Non-IFRS Financial Measures

Throughout this Management's Discussion and Analysis (MD&A) the Company uses the terms "field netback", "cash netback" and "net debt" to analyze operating performance, which are not standardized measures recognized under

IFRS and do not have a standardized meaning prescribed by IFRS. These measures are commonly used in the oil and gas industry and are considered informative by management, shareholders and analysts. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies.

The Company calculates cash and field netback by dividing various financial statement items as determined by IFRS by total production for the period on a barrel of oil equivalent basis. The Company calculates net debt as long-term debt plus working capital deficiency (current liabilities less current assets).

Frequently Recurring Terms

Bonterra uses the following frequently recurring terms in this MD&A: "WTI" refers to West Texas Intermediate, a grade of light sweet crude oil used as benchmark pricing in the United States; "MSW Stream Index" or "Edmonton Par" refers to the mixed sweet blend that is the benchmark price for conventionally produced light sweet crude oil in Western Canada; "AECO" is the benchmark price for natural gas in Alberta, Canada; "bbl" refers to barrel; "NGL" refers to Natural gas liquids; "MCF" refers to thousand cubic feet; "MMBTU" refers to million British Thermal Units; "GJ" refers to gigajoule; and "BOE" refers to barrels of oil equivalent. Disclosure provided herein in respect of a BOE may

be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Numerical Amounts

The reporting and the functional currency of the Company is the Canadian dollar.

QUARTERLY COMPARISONS

2022	2021
As at and for the periods ended
($ 000s except $ per share)	Q1	Q4	Q3	Q2	Q1
Financial
Revenue - oil and gas sales	91,542	79,202	64,457	59,163	48,794
Cash flow from operations	40,942	37,868	24,616	18,874	14,745
Per share - basic	1.16	1.11	0.73	0.56	0.44
Per share - diluted	1.11	1.07	0.71	0.55	0.43
Net earnings (loss)(1)	10,519	16,333	7,296	157,354	(1,684)
Per share - basic	0.30	0.48	0.22	4.68	(0.05)
Per share - diluted	0.29	0.46	0.21	4.55	(0.05)
Capital expenditures	32,169	17,636	18,578	7,607	23,461
Total assets	965,969	945,721	939,835	948,260	748,543
Net debt	260,670	267,179	307,729	319,310	328,506
Shareholders' equity	405,148	392,019	361,590	353,431	195,393
Operations
Light oil (barrels per day)	7,356	7,659	6,948	7,370	6,834
NGLs (barrels per day)	996	1,105	928	996	1,025
Conventional natural gas (MCF per day)	29,609	30,276	27,995	26,057	24,301
Total BOE per day	13,287	13,810	12,542	12,709	11,909

• (1) In Q2 2021, with stronger forward benchmark prices since the impact of COVID-19 beginning in March 2020, the Company recorded a $203,197,000 impairment reversal on its Alberta CGU's oil and gas assets less $47,149,000 deferred income tax expense.

  2020

  As at and for the periods ended
  ($ 000s except $ per share)	Q4	Q3	Q2	Q1
  Financial
  Revenue - oil and gas sales	31,761	29,155	22,171	38,555
  Cash flow from (used in) operations	(1,199)	6,370	4,429	22,473
  Per share - basic	(0.04)	0.19	0.13	0.67
  Per share - diluted	(0.04)	0.19	0.13	0.67
  Net loss(1)	(11,071)	(5,211)	(5,954)	(284,653)
  Per share - basic	(0.33)	(0.16)	(0.18)	(8.53)
  Per share - diluted	(0.33)	(0.16)	(0.18)	(8.53)
  Capital expenditures	19,064	2,819	104	21,741
  Total assets	731,859	722,910	732,462	743,533
  Net debt	315,573	295,168	299,445	300,688
  Shareholders' equity	196,633	207,325	212,342	218,211
  Operations
  Light oil (barrels per day)	5,371	5,355	5,553	7,058
  NGLs (barrels per day)	960	1,064	1,104	999
  Conventional natural gas (MCF per day)	22,560	21,510	21,142	23,864
  Total BOE per day	10,091	10,004	10,181	12,034

• (1) In the first quarter of 2020 the Company recorded a $331,678,000 impairment provision less a $54,107,000 deferred income tax recovery related to its Alberta CGU's oil and gas assets due to the impact of COVID-19 on forward benchmark prices for crude oil.