TSX, NYSE: BXE
CALGARY, June 25, 2015 /PRNewswire/ - Bellatrix Exploration Ltd. ("Bellatrix"
or the "Company") (TSX, NYSE: BXE) is pleased to announce the
successful start-up of Phase 1 of the Bellatrix O'Chiese
Nees-Ohpawganu'ck deep cut gas plant in the Alder Flats area of Alberta
(the "Bellatrix Alder Flats Plant" or the "Plant"). Bellatrix is also
pleased to announce the completion of the current semi-annual borrowing
base redetermination under its bank credit facilities.
Phase 1 of the Bellatrix Alder Flats Plant is Fully Operational
Bellatrix successfully completed construction of Phase 1 of the
Bellatrix Alder Flats Plant ahead of schedule and on budget. Initial
Plant start-up commenced on May 22, 2015, followed by first delivery of
natural gas volumes to sales. Subsequent to Plant start-up, Bellatrix
has successfully increased volume throughput at the Plant, ultimately
achieving inlet gas volumes of over 110 mmcf/d by mid-June. Completion
and successful ramp up of volumes through the Plant represent
significant milestones for Bellatrix. The Bellatrix Alder Flats Plant
improves the Company's operational control and enhances reliability of
processing. With the Plant now fully operational, the Company expects
to meaningfully realize these strategic benefits during the second half
of the year.
Semi-Annual Borrowing Base Redetermination
Bellatrix's syndicate of lenders has completed its semi-annual review of
the borrowing base under the Company's revolving credit facilities and
has approved Bellatrix's request for a revised borrowing base of $600
million. The semi-annual redetermination was initially scheduled to be
completed in May 2015, but was deferred to facilitate the Company's
offering of US$250 million of 8.5% senior unsecured notes due 2020 (the
"Senior Notes"), which was completed on May 21, 2015. The revised
borrowing base incorporates an automatic reduction equal to two times
the annual interest cost of the Senior Notes and a redetermination
based on the syndicate's review of the current estimated value of the
Company's proved reserves under the syndicate's pricing assumptions.
The revised borrowing base is anticipated to result in lower standby
fees charged on unutilized amounts available under the credit
facilities. As at May 31, 2015, Bellatrix had drawn approximately $365
million on its credit facilities, and after giving effect to the
redetermined borrowing base, Bellatrix would have had access to
approximately $235 million of liquidity under the credit facilities
before deducting outstanding letters of credit.
The Company's credit facilities are available on an extendible revolving
basis and consist of a $75 million operating facility provided by a
Canadian bank and a $525 million syndicated facility provided by nine
financial institutions, subject to a borrowing base test. The three
year revolving facilities mature on May 30, 2017, unless extended for a
further period not to exceed a maximum term of up to three years. The
borrowing base is subject to re-determination on May 31 and November 30
in each year prior to maturity, with the next semi-annual
redetermination scheduled to occur on November 30, 2015.
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 and on the New
York Stock Exchange under the symbol BXE.
FORWARD LOOKING STATEMENTS:
This press release contains forward looking statements. More
particularly, this press release contains statements regarding the
completion and start-up of the Bellatrix Alder Flats Plant and the
resulting expected improvements in the Company's operational control
and reliability of processing, the benefits to be derived therefrom and
the timing thereof. This press release also contains forward looking
statements regarding the Company's revised borrowing base under its
bank credit facility and the anticipated lower standby fees charged on
unutilized amounts available under the credit facilities and the
Company's available liquidity under the bank credit facility.
Forward-looking statements necessarily involve risks, including,
without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation,
loss of markets, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, competition from
other producers, inability to retain drilling rigs and other services,
incorrect assessment of the value of acquisitions, failure to realize
the anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources. Events or
circumstances may cause actual results to differ materially from those
predicted, as a result of the risk factors set out and other known and
unknown risks, uncertainties, and other factors, many of which are
beyond the control of Bellatrix. In addition, forward looking
statements or information are based on a number of factors and
assumptions which have been used to develop such statements and
information but which may prove to be incorrect and which have been
used to develop such statements and information in order to provide
shareholders with a more complete perspective on Bellatrix's future
operations. Such information may prove to be incorrect and readers are
cautioned that the information may not be appropriate for other
purposes. Although the Company believes that the expectations
reflected in such forward looking statements or information are
reasonable, undue reliance should not be placed on forward looking
statements because the Company can give no assurance that such
expectations will prove to be correct. In addition to other factors
and assumptions which may be identified herein, assumptions have been
made regarding, among other things: the impact of increasing
competition; the general stability of the economic and political
environment in which the Company operates; the timely receipt of any
required regulatory approvals; the ability of the Company to obtain
qualified staff, equipment and services in a timely and cost efficient
manner; drilling results; the ability of the operator of the projects
which the Company has an interest in to operate the field in a safe,
efficient and effective manner; the ability of the Company to obtain
financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas reserves
through acquisition, development or exploration; the timing and costs
of pipeline, storage and facility construction and expansion and the
ability of the Company to secure adequate product transportation;
future commodity prices; currency, exchange and interest rates; the
regulatory framework regarding royalties, taxes and environmental
matters in the jurisdictions in which the Company operates; and the
ability of the Company to successfully market its oil and natural gas
products. Readers are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which have been used. As a
consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Additional information
on these and other factors that could affect Bellatrix's operations and
financial results are included in reports on file with Canadian and US
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com), through the SEC website (www.sec.gov), and at Bellatrix's website (www.bellatrixexploration.com). Furthermore, the forward looking statements contained herein are
made as at the date hereof 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 required by applicable securities
laws.
SOURCE Bellatrix Exploration Ltd.
PDF available at: http://stream1.newswire.ca/media/2015/06/25/20150625_C9922_DOC_EN_43852.pdf
