TSX, NYSE: BXE
CALGARY, Dec. 21, 2016 /PRNewswire/ - Bellatrix
Exploration Ltd. ("Bellatrix" or the "Company") (TSX, NYSE: BXE) is
pleased to announce that it has completed the previously announced
sale of certain non-core assets in the greater Harmattan area of
Alberta (the "Harmattan asset
sale"). Pursuant to the Harmattan asset sale, the Company
received net cash proceeds of approximately $65 million, and made a $15 million vendor take back loan ("VTB Loan") to
the purchaser. The VTB Loan bears interest at 10% per annum and is
secured by a first lien charge against the assets sold. The
terms of the VTB Loan also provide that a minimum of 50% of the net
operating income from the assets sold will be earmarked for
principal repayment on a quarterly basis, together with accrued
interest. The VTB Loan has a 2 year maturity date, and no
prepayment penalties. The net cash proceeds from the Harmattan
asset sale were used to reduce the Company's outstanding bank
debt.
Concurrent with the closing of the Harmattan asset sale, the
borrowing base under the Company's syndicated revolving credit
facilities (the "Credit Facilities") was redetermined at
$100 million, providing the Company
with approximately $70 million of
available liquidity post-closing (before deducting outstanding
letters of credit). Other than the estimated $30 million Credit Facilities balance as at
December 31, 2016, the Company has no
debt maturities until 2020 and 2021.
Closing of the Harmattan asset sale represents another
significant milestone for Bellatrix in 2016. Bellatrix is well
positioned to replace the production, cash flow, and reserves
associated with the Harmattan asset sale from continued development
of its low cost Spirit River play,
which is supported by strategic infrastructure ownership and
operatorship. Bellatrix plans to release its 2017 capital budget
and guidance in January 2017, with a
continued emphasis on profitable and sustainable per share growth,
and proactive capital resource management.
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 "expect", "position",
"plan", and similar expressions are intended to identify
forward-looking statements. More particularly and without
limitation, this document contains forward-looking statements
concerning management's expectations that completion of the
Harmattan asset sale provides the company with approximately
$70 million of available liquidity
under its Credit Facilities and that other than the estimated
$30 million Credit Facilities balance
as at December 31, 2016, the Company
has no debt maturities until 2020 and 2021, expectations that
Bellatrix is well positioned to replace the production, cash flow,
and reserves associated with the Harmattan asset sale from
continued development of its Spirit
River play, expectations that the Spirit River play is a low
cost play that is supported by strategic infrastructure ownership
and operatorship, expectations that Bellatrix plans on releasing
its 2017 capital budget and guidance in January 2017, and expectations that such budget
will have a continued emphasis on profitable and sustainable per
share growth, and proactive capital resource management. 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.
SOURCE Bellatrix Exploration Ltd.