TSX, NYSE MKT: BXE
CALGARY, April 10, 2014 /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 their
option to increase their committed capital investment by an additional
$50 million, for a total commitment of $250 million, on the same terms
and conditions as the previously announced Joint Venture. Grafton's
increased capital investment will continue to support the accelerated
development of a portion of Bellatrix's extensive undeveloped land
holdings.
The Grafton Joint Venture is located in the Willesden Green and Brazeau
areas of West-Central Alberta. Under the terms of the amended agreement
prior to the exercise of this option, Grafton was committed to
contributing 82%, or $200 million, to the $244 million Joint Venture to
participate in an expected 58 net Notikewin/Falher and Cardium well
program. Under the agreement, Grafton will earn 54% of Bellatrix's
working interest in each well drilled in the development 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 on Bellatrix's pre-Joint Venture
working interest. The effective date of the initial agreement for the
Joint Venture is July 1, 2013 and had an initial term of 2 years. With
the exercise of the $50 million option, Bellatrix shall have until the
end of the third anniversary of the effective date to spend the
additional capital.
Bellatrix continues to focus on growth by development of its core
Cardium and Notikewin/Falher assets utilizing its large inventory of
geological prospects. The Company has developed an inventory of 742 net
remaining Cardium locations, 381 net Notikewin/Falher and 128 Mannville
locations representing a net remaining investment of $4.97 billion
(based on current costs). Bellatrix has approximately 416,631 net
undeveloped acres and including all opportunities of approximately
2,000 net exploitation drilling opportunities identified, with capital
requirements of $10.1 billion representing over 30 years of drilling
inventory based on current annual cash flow and costs. The Company
continues to focus on adding prospective lands within our core fairway.
The Company's current 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 of Bellatrix trade on the Toronto Stock Exchange ("TSX") and on
the NYSE MKT under the symbol BXE.
Grafton Energy Co. I Ltd. is managed by Grafton Asset Management Inc., a
Calgary-based energy sector investment manager, focused on investing
across the capital structure of top tier Canadian energy companies.
Grafton creates wholly bespoke energy investment solutions to meet
sovereign, institutional and private client mandates. As a financial
partner, Grafton provides both companies and investors with unique
financing and investment solutions which meet 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, drilling inventory and capital costs and time to develop,
may contain forward-looking statements, and necessarily involve risks
and uncertainties, certain of which are beyond Bellatrix's control,
including 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. The forward looking statements contained in this press release are
made as of the date hereof and Bellatrix undertakes no obligations to
update publicly or revise any forward looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
SOURCE Bellatrix Exploration Ltd.
Raymond G. Smith, P.Eng., President and CEO (403) 750-2420
or
Edward J. Brown, CA, Executive Vice President, Finance and CFO (403) 750-2655
or
Brent A. Eshleman, P.Eng., Executive Vice President (403) 750-5566
or
Troy Winsor, Investor Relations (800) 663-8072