TSX, NYSE: BXE
CALGARY, Sept. 14, 2016 /CNW/ - Bellatrix Exploration Ltd.
("Bellatrix" or the "Company") (TSX, NYSE: BXE) plans to host an
analyst update presentation on September
14, 2016. The presentation will provide discussion of
Bellatrix's asset base, key operational areas, and corporate
strategy. A copy of the presentation will be available on
Bellatrix's website at
http://investors.bellatrixexploration.com/presentations.
Bellatrix maintains an active risk management program designed
to reduce the impact of commodity price volatility and provide
greater predictability of future cash flow. Bellatrix has
increased its risk management protection in calendar 2017 with
approximately 61% of gross natural gas volumes hedged at an average
fixed price of approximately C$3.34/mcf (based on current Company gross
natural gas volumes). Additionally, Bellatrix maintains a
strong level of fixed price protection of approximately 60% of
gross natural gas volumes at an average fixed price of
approximately C$2.96/mcf in the
second half of 2016 (based on the midpoint of second half 2016
average production guidance of 34,500 boe/d, 74% natural gas
weighted). Management has established a strong level of risk
management protection through calendar 2017, and continues to
monitor market pricing with the intent on further fortifying its
portfolio with an inaugural base level of 2018 risk management
protection over the next several quarters.
As at September 13, 2016,
Bellatrix was party to a series of commodity price risk management
contracts for 2016 and 2017 as summarized below:
|
|
|
|
|
Product
|
Financial
Contract
|
Period
|
Volume
|
Average Price
(1)
|
Natural
gas
|
Fixed price
swap
|
July 1, 2016 to
September 30, 2016
|
95.3
MMcf/d
|
$2.91/mcf
|
Natural
gas
|
Fixed price
swap
|
October 1, 2016 to
December 31, 2016
|
84.3
MMcf/d
|
$3.02/mcf
|
Natural
gas
|
Fixed price
swap
|
January 1, 2017 to
December 31, 2017
|
92.7
MMcf/d
|
$3.34/mcf
|
Crude oil
|
WTI basis swap
(2)
|
July 1, 2016 to
September 30, 2016
|
2,000
bbl/d
|
US$4.05/bbl
|
Crude oil
|
WTI basis swap
(2)
|
October 1, 2016 to
December 31, 2016
|
1,500
bbl/d
|
US$4.05/bbl
|
(1)
|
The conversion of
$/GJ to $/mcf is based on an average corporate heat content rate of
40.6Mj/m3.
|
|
(2)
|
Settled on the
monthly average Mixed Sweet Blend ("MSW") Differential to WTI. The
MSW differential refers
to the discount between WTI and the mixed sweet crude grade at
Edmonton, calculated on a monthly weighted
average basis.
|
|
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
Certain information contained in this press release may
contain forward looking statements within the meaning of applicable
securities laws. The use of any of the words "maintain",
"continue", "plan", "future", "strategy", "intent", and similar
expressions are intended to identify forward-looking statements. To
the extent that any forward-looking information contained herein
constitute a financial outlook, they were approved by management on
the date hereof and are included herein to provide readers with an
understanding of the anticipated funds available to Bellatrix to
fund its operations and readers are cautioned that the information
may not be appropriate for other purposes. 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, actions taken by the
Company's lenders that reduce the Company's available credit, the
risk that Bellatrix is unable to complete acquisitions or
dispositions as anticipated, and any inability 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 continued availability of funds under the Credit Facilities;
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 of exploration; the timing and costs of
pipeline, storage and facility construction and expansion and the
ability of the Company to secure adequate product transportation;
the ability to complete acquisition and dispositions as currently
anticipated; the ability to obtain the necessary funds through
acquisition, disposition or financing activities in order to repay
amounts outstanding under the Bellatrix's debt obligations when
due; 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 (including, without limitation, under the
heading "Risk Factors" in the Company's Annual Information Form for
the year ended December 31, 2015) on
file with Canadian and United
States 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.
BARRELS OF OIL EQUIVALENT
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. All boe conversions in this
press release are derived from converting gas to oil in the ratio
of six thousand cubic feet of gas to one barrel of oil. 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.
SOURCE Bellatrix Exploration Ltd.