TSX, NYSE: BXE
CALGARY,
June 14, 2017
/PRNewswire/ - Bellatrix Exploration Ltd. ("Bellatrix" or the
"Company") (TSX, NYSE: BXE) is pleased to announce that it has
entered into a definitive purchase and sale agreement for the sale
of non-core assets in the Strachan area of Alberta (the "Strachan asset sale") for cash
consideration of $34.5
million.
The Strachan asset sale is consistent with Bellatrix's
strategy to maintain a focused and concentrated asset base, while
strengthening the balance sheet. Upon closing of the
transaction, Bellatrix plans on reviewing its full year 2017
capital expenditure budget, with the intention to reinvest a
portion of the proceeds from the sale into Bellatrix's high rate of
return Spirit River liquids rich
natural gas play to maintain current production volume guidance,
while utilizing the remaining portion of the proceeds from the sale
to reduce outstanding indebtedness, thereby enhancing the Company's
already strong liquidity position.
Average production volumes based on June 2017 month to date field estimates from the
Strachan asset are approximately 1,750 boe/d (70% natural gas
weighted), resulting in a flowing barrel metric of $19,700/boe/d.
Closing of the Strachan asset sale is expected to occur on
or before June 30, 2017 and is
subject to customary closing conditions.
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
within the meaning of applicable securities laws. More particularly
and without limitation, this press release contains forward-looking
statements regarding the Company's plans to complete the Strachan
asset sale and the timing thereof, and plans relating to the use of
the proceeds from the Strachan asset sale. All statements, other
than statements of historical facts, that address activities that
Bellatrix assumes, plans, expects, believes, projects, aims,
estimates or anticipates (and other similar expressions) will,
should or may occur in the future are forward-looking statements.
The forward-looking statements provided in this news release are
based on management's current belief, based on currently available
information, as to the outcome and timing of future events.
Bellatrix cautions that these forward-looking statements are
subject to all of the risks and uncertainties normally incident to
such endeavors. These risks relating to Bellatrix include, but are
not limited to, the risk that the Strachan asset sale is not
completed as contemplated and other risks as described in reports
(including, without limitation, under the heading "Risk Factors" in
the Company's Annual Information Form for the year ended
December 31, 2016) 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.
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.