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Press release from Marketwire

Bonavista Energy Corporation Confirms Dividend for June 15, 2012

Tuesday, May 15, 2012

Bonavista Energy Corporation Confirms Dividend for June 15, 201220:10 EDT Tuesday, May 15, 2012CALGARY, ALBERTA--(Marketwire - May 15, 2012) - Bonavista Energy Corporation (TSX:BNP) ("Bonavista") confirms that its monthly cash dividend generated from May production will be $0.12 per common share, payable on June 15, 2012. Our objective is to set a prudent dividend policy that provides an attractive cash return to our shareholders, while reinvesting the remainder of our funds from operations to increase our production and equity value. This in turn, will strengthen our asset base, which will allow for consistent or modestly increasing dividend levels in the future. Our dividend policy is reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, our commodity hedging program, current operations and future investment opportunities. We continually monitor the impact of all these factors and adjust our dividend and capital programs as conditions dictate. Bonavista has declared this dividend to be paid on June 15, 2012 to common shareholders of record on May 31, 2012, with an ex-dividend date of May 29, 2012. The Board of Directors of Bonavista declared the dividend payable in either cash or common shares at the election of the shareholder. Any common shareholder choosing to receive common shares instead of cash must submit his or her stock dividend confirmation notice no later than 4:30 p.m. (Calgary time) on the fourth business day immediately prior to the record date for the declared dividend payment, being May 25, 2012.This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.Stock Dividend ProgramAt its annual and special meeting of shareholders held on May 3, 2012, the Bonavista shareholders approved the implementation of a Stock Dividend Program which enables common shareholders to elect to receive dividends in the form of common shares at 95% of the weighted average market price calculated 5 days before the payment date and all fees associated with the Stock Dividend Program will be paid by Bonavista. Participation in the Stock Dividend Program is optional. While the Stock Dividend Program is similar to Bonavista's Dividend Reinvestment Plan, the Stock Dividend Program has certain advantages which are described in more detail in Bonavista's Management Information Circular dated March 19, 2012 which is available on SEDAR at www.sedar.com and on Bonavista's website at www.bonavistaenergy.com. For further information regarding the Stock Dividend Program, please contact Valiant Trust Company at 403-233-2801.Dividend Reinvestment Plan Bonavista also currently has a Dividend Reinvestment Plan which enables eligible common shareholders to increase their investment in Bonavista by reinvesting their monthly cash dividend. Due to the implementation of the Stock Dividend Program, the current Dividend Reinvestment Plan will be terminated on August 15, 2012. As a result, all common shareholders who are currently participating in the Dividend Reinvestment Plan will need to make an election to participate in the Stock Dividend Program and must either contact their broker to enroll or if they are a registered shareholder, complete the stock dividend confirmation notice which may be obtained from Valiant Trust Company.Forward Looking StatementsCorporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, particularly those pertaining to cash dividends, production volumes, commodity prices, operating costs and drilling results, which are considered reasonable by Bonavista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by Bonavista that actual results achieved during the forecast period will be the same in whole or in part as those forecasts.FOR FURTHER INFORMATION PLEASE CONTACT: Keith A. MacPhailBonavista Energy CorporationChairman & CEO(403) 213-4300ORJason E. SkeharBonavista Energy CorporationPresident & COO(403) 213-4300ORGlenn A. HamiltonBonavista Energy CorporationSenior Vice President & CFO(403) 213-4300OR1500, 525 - 8th Avenue SWBonavista Energy CorporationCalgary, AB T2P 1G1www.bonavistaenergy.com