TSX, NYSE MKT: BXE
CALGARY, Sept. 10, 2013 /CNW/ - Bellatrix Exploration Ltd. ("Bellatrix"
or the "Company") (TSX, NYSE MKT: BXE) is pleased to announce that
Grafton Energy Co I Ltd. ("Grafton"), has elected to exercise an
option to increase its committed capital investment by an additional $100 million on the same terms and conditions as the previously announced joint
venture (the "Joint Venture") to accelerate development on a portion of
Bellatrix's extensive undeveloped land holdings.
The Joint Venture is in Willesden Green and Brazeau areas of
West-Central Alberta. Under the terms of the amended agreement, Grafton
will contribute 82%, or $200 million, to the $244 million Joint Venture
to participate in an expected 58 Notikewin/Falher and Cardium well
program. Under the agreement, Grafton will earn 54% of Bellatrix's
working interest in each well drilled in the well program until payout
(being recovery of Grafton's capital investment plus an 8% return) on
the total program, reverting to 33% of Bellatrix's working interest
("WI") after payout. At any time after payout of the entire program,
Grafton shall have the option to elect to convert all wells from the
33% WI to a 17.5% Gross Overriding Royalty ("GORR") on Bellatrix's
pre-Joint Venture working interest. Grafton also has an additional
one-time option within 12 months of the effective date to increase its
exposure by an additional $50 million on the same terms and conditions. The effective date of the agreement
is July 1, 2013 and has a term of 2 years. If the $50 million option
is exercised, Bellatrix shall have until the end of the third
anniversary of the effective date to spend the additional capital.
As a result of the Joint Venture and based on the initial funding
commitment, Bellatrix's updated net capital expenditure plan for 2013
is expected to be approximately $240 million, not including Grafton
capital. Based on the timing of proposed expenditures in the latter
half of 2013, completion of anticipated infrastructure and normal
production declines, execution of the updated 2013 capital expenditure
plan is expected to provide average daily production of 23,000 to
24,000 boe/d and 2013 exit rate of 30,000 to 31,000 boe/d.
The Company's updated corporate presentation is available at www.bellatrixexploration.com.
Bellatrix Exploration Ltd. is a Western Canadian based growth oriented
oil and gas company engaged in the exploration for, and the
acquisition, development and production of oil and natural gas reserves
in the provinces of Alberta, British Columbia and Saskatchewan. Common
shares and convertible debentures of Bellatrix trade on the Toronto
Stock Exchange ("TSX") under the symbols BXE and BXE.DB.A, respectively
and the common shares of Bellatrix trade on the NYSE MKT under the
symbol BXE.
Grafton Asset Management Inc. ("Grafton") is an energy focused,
Calgary-based investment management firm. Grafton creates bespoke
energy investment solutions on behalf of sovereign, institutional and
private clients through its proprietary access and intelligence in the
Canadian energy sector. As a financial partner, Grafton provides both
investors and energy companies with unique financing strategies to meet
requisite investment mandates and a variety of risk parameters.
For all Grafton Asset Management Inc. inquiries, please direct your
questions to Ashley Vickers, Investor Relations (ashley@graftonfunds.com, 403-991-4274 or 403-228-8247).
All amounts in this press release are in Canadian dollars unless
otherwise identified.
Forward looking statements: Certain information set forth in this news
release, including management's assessments of the future plans and
operations including anticipated 2013 average daily production and exit
rate and 2013 capital expenditure budget may contain forward-looking
statements, and necessarily involve risks and uncertainties, certain of
which are beyond Bellatrix's control, including risks related to
satisfaction of conditions precedent to the Joint Venture and related
to closing thereof, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation,
loss of markets and other economic and industry conditions, volatility
of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers,
inability to retain drilling services, incorrect assessment of value of
acquisitions and failure to realize the benefits therefrom, delays
resulting from or inability to obtain required regulatory approvals,
the lack of availability of qualified personnel or management, stock
market volatility and ability to access sufficient capital from
internal and external sources and economic or industry condition
changes. Actual results, performance or achievements could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given
that any events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits that
Bellatrix will derive therefrom. Additional information on these and
other factors that could affect Bellatrix are included in reports on
file with Canadian securities regulatory authorities and the United
States Securities and Exchange Commission and may be accessed through
the SEDAR website (www.sedar.com), the SEC's website (www.sec.gov) or at Bellatrix's website www.bellatrixexploration.com. Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and Bellatrix
does not undertake any obligation to update publicly or to revise any
of the included forward looking statements, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities law.
Conversion: The term barrels of oil equivalent ("boe") may be
misleading, particularly if used in isolation. A boe conversion ratio
of six thousand cubic feet of natural gas to one barrel of oil
equivalent (6 mcf/bbl) is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based on
the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value.
All boe conversions in this report are derived from converting gas to
oil in the ratio of six thousand cubic feet of gas to one barrel of
oil.
SOURCE Bellatrix Exploration Ltd.
Raymond G. Smith, P.Eng., President and CEO (403) 750-2420
Edward J. Brown, CA, Executive Vice President, Finance and CFO (403) 750-2655
Brent A. Eshleman, P.Eng., Executive Vice President (403) 750-5566