Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE: BXE) is pleased to announce it has successfully completed construction and has begun commissioning 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”). Phase 1 of the Plant was constructed with design capacity of 110 mmcf/d, and was completed ahead of schedule and within approximately 3% of cost estimates.
Commissioning of the Bellatrix Alder Flats Plant is currently underway, which involves operational and functional unit testing, pressure testing and purging, initial Plant start up, and performance testing. Mechanical, instrument, and electrical pre-commissioning work is complete. Final pressure testing and purging of the Plant is also complete. Initial Plant start up commenced on May 22, 2015 with subsequent first delivery of natural gas volumes to sales. Bellatrix anticipates increasing volume throughput at the Plant and completion of the commissioning process through the month of June.
Bellatrix has secured firm takeaway capacity of its natural gas volumes from the Plant through the main gas transmission system in Alberta and has entered into firm transportation and fractionation agreements with an established midstream company providing for takeaway, processing and marketing of all NGL and condensate products produced at the Plant. Bellatrix’s firm service takeaway capacity on the main gas transmission system will grow from approximately 220 mmcf/d in the first quarter of 2015 to 330 mmcf/d upon final start-up of Phase 1 of the Plant. This incremental firm takeaway capacity provides Bellatrix with unfettered processing capability to grow company volumes to approximately 60,000 boe/d without material capital spending on infrastructure over the near term.
Completion of the Bellatrix Alder Flats Plant is a significant milestone for Bellatrix because it is expected to provide improved operational control and enhanced reliability of processing. Bellatrix intends to deliver natural gas volumes to the Plant sourced from both behind pipe volumes that are currently constrained from area processing within the greater Ferrier region, and from operated natural gas volumes currently processed through third party facilities. Bellatrix expects the enhanced natural gas liquids recovery capabilities of the Plant will provide an approximately 14% uplift in revenue from the same gas stream currently processed through third party plants.
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.
