TSX, NYSE: BXE
CALGARY, June 27, 2017 /CNW/ - 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 Strachan area of Alberta (the "Strachan asset sale").
Concurrent with the closing of the Strachan asset sale, the
borrowing base under the Company's syndicated revolving credit
facilities (the "Credit Facilities") was reconfirmed at
$120 million, unchanged from prior
levels, providing the Company with approximately $105 million of available liquidity post-closing
(before deducting outstanding letters of credit). Other than
approximately $15 million outstanding
on the Credit Facilities, the Company has no debt maturities until
2020 and 2021.
UPDATED 2017 GUIDANCE
Bellatrix announces updated 2017 guidance, with continued
investment in the low cost Spirit
River liquids rich natural gas play, which is supported by
strategic infrastructure ownership and operatorship. Bellatrix's
Board of Directors has approved a net capital expenditure budget of
$120 million in 2017, representing an
increase of $15 million. The increase
includes the addition of approximately four net Spirit River wells to be drilled during the
second half of the year, bringing the total anticipated second half
drilling program to approximately 13 net wells.
By reinvesting less than half of the gross proceeds of the
Strachan asset sale into the Company's Spirit River play, Bellatrix expects to
maintain its previously announced 2017 average daily and exit
production volumes at 34,500 boe/d and 35,500 boe/d, respectively,
while also reducing outstanding indebtedness, thereby enhancing the
Company's already strong liquidity position.
2017 Budget & Guidance Summary
|
|
Revised
2017 Annual Guidance (June 26,
2017)
|
Previously Set
2017
Annual Guidance
(May 10, 2017)
|
Production
(boe/d)
|
|
|
|
2017 Average daily
production
|
34,500
|
34,500
|
|
2017 Exit
production
|
35,500
|
35,500
|
Production Mix
(%)
|
|
|
|
Natural
gas
|
76
|
76
|
|
Crude oil, condensate
and NGLs
|
24
|
24
|
Capital
Expenditures ($000)
|
|
|
|
Total net capital
expenditures(1)
|
$120,000
|
$105,000
|
|
Property disposition
– cash(2)
|
($34,500)
|
-
|
|
Total net capital
expenditures after property disposition –
cash(2)
|
$85,500
|
$105,000
|
Production expense
($/boe)(3)
|
$9.00
|
$9.00
|
|
|
|
|
(1)
Net capital spending includes exploration and development
capital projects and corporate assets,
and excludes property acquisitions and dispositions. Net
capital spending also excludes the previously
received prepayment portion of Bellatrix's partner's 35% share of
the cost of construction of Phase 2 of the Alder Flats Plant during
calendar 2017.
|
(2)
Property disposition – cash refers to the Strachan asset sale
and does not include transaction costs or
adjustments.
|
(3)
Production expenses before net processing
revenue/fees.
|
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 management's expectations that completion of
the Strachan asset sale provides the company with approximately
$105 million of available liquidity
under its Credit Facilities and that other than approximately
$15 million outstanding on the Credit
Facilities, the Company has no debt maturities until 2020 and 2021,
and expectations regarding the Company's 2017 average daily and
exit production guidance. 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.