TSX, NYSE MKT: BXE
CALGARY, Oct. 15, 2013 /CNW/ - Bellatrix Exploration Ltd. ("Bellatrix"
or the "Company") (TSX, NYSE MKT: BXE) is pleased to announce it has
entered into a $240 million joint venture partnership (the "Joint
Venture") with TCA Energy Ltd. ("TCA"). TCA is a Canadian incorporated
special purpose vehicle for Troika Resources Private Equity Fund which
is based in Seoul Korea and managed by KDB Bank, SK Energy and
Samchully AMC.
Pursuant to the agreement forming the Joint Venture, Bellatrix and TCA
will drill and develop lands in the Ferrier Cardium area of West
Central Alberta, with the program to be completed by December 31,
2014. TCA will contribute $120 million, representing a 50% share,
towards the capital program for the drilling of an expected 63 gross
wells, and in exchange, will receive 35% of Bellatrix's working
interest until payout (being recovery of TCA's capital investment plus
a 15% internal rate of return) on the total program, and thereafter
reverting to 25% of Bellatrix's working interest. As part of this
agreement, TCA will be participating in 14 gross wells (as included in
the total expected 63 gross well program) for wells that have been
drilled since January 1, 2013, resulting in estimated net proceeds of
$16.7 million to be received by Bellatrix upon closing.
Certain conditions precedent to closing, including Korean governmental
regulatory approvals, are expected to be satisfied or waived to enable
closing to occur on or before November 15, 2013.
Upon closing of the Joint Venture, Bellatrix plans to review its
previously announced net capital expenditure plan for 2013 of
approximately $240 million, and will utilize the net proceeds from the
disposition to reduce the Company's indebtedness, and ultimately will
direct it to the continued development of its Cardium and Mannville
asset base.
Bellatrix continues to focus on growth by the development of its core
Cardium and Notikewin/Falher assets utilizing its large inventory of
geological prospects. The Company has developed an inventory of 611 net
remaining Cardium locations and 378 net Notikewin/Falher locations
representing net remaining capital requirements of $3.94 billion based
on current costs. Based on the drilling commitment in the Joint
Venture, the Joint Venture represents approximately 6.4% of the
aforementioned inventory. As at June 30, 2013, Bellatrix has
approximately 201,891 net undeveloped acres of land in Alberta, British
Columbia and Saskatchewan and including all opportunities has
approximately 1,606 net exploitation drilling opportunities identified,
with capital requirements of $7.9 billion based on current costs
representing over 40 years of drilling inventory based on current
annual cash flow. The Company continues to focus on adding Cardium and
Notikewin/Falher prospective lands.
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.
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, expected timing of satisfaction of conditions
precedent to closing of the Joint Venture, capital expenditures of the
Joint Venture and expected number of wells to be drilled thereunder,
the Company's drilling inventory and capital requirements related
thereto and time for development thereof, use of proceeds to be
received at closing, and the current 2014 capital expenditure budget
and plans to review it 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 closing of 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.
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