Bellatrix Exploration Ltd. (“Bellatrix", "our" or the "Company")
(TSX:BXE) (NYSE:BXE) provides an operational update and announces
the renewal and extension of its revolving credit facilities.
Bellatrix completed its first half 2018
development drilling program in February, bringing 5 gross (5.0
net) operated Spirit River wells on-stream during the first
quarter. These wells continue to outperform expected results
by approximately 35% on an IP60 basis, further demonstrating the
high quality nature of Bellatrix’s asset base.
Bellatrix’s infrastructure control, takeaway
capacity, and market egress allow the Company to proactively manage
production volumes during periods of commodity price volatility in
order to optimize funds flow. To that end, Bellatrix has
curtailed production volumes of approximately 12 MMcfe/d to 24
MMcfe/d (2,000 to 4,000 boe/d) during periods of the second quarter
to proactively manage the impact of weak daily AECO natural gas
prices. Bellatrix maintains ample takeaway capacity and
egress to produce curtailed volumes when daily natural gas prices
are higher.
Based on field estimates and current second
quarter production management plans, Bellatrix anticipates second
quarter average production volumes to meet its annual average
guidance range of 34,000 to 35,000 boe/d, despite the impact from
the previously mentioned production curtailments. The Company
plans to maintain a flexible capital program in the second half of
2018 focused on optimizing forecast return on invested capital
through focused development of the Spirit River liquids rich
natural gas play and higher liquids weighted opportunities in the
Cardium play. Bellatrix anticipates the resumption of
drilling activity in mid-July.
The Phase 2 expansion of the Bellatrix O’Chiese
Nees-Ohpawganu’ck deep-cut gas plant at Alder Flats (the “Alder
Flats Plant”) began selling volumes March 19, 2018, and continues
to perform in-line with expectations. The turbo expander is
operational on Phase 2, which was designed with a colder process,
thereby enhancing natural gas liquid (“NGL”) extraction
capabilities. Total combined corporate condensate and NGL
yields increased during the month of April compared with the first
quarter of 2018, owing to the redirection of natural gas volumes
from less efficient third-party plants into the deeper cut process
at the Bellatrix Alder Flats Plant.
Bellatrix recently completed the renewal and
extension of its syndicated revolving credit facilities (“Credit
Facilities”) and the semi-annual redetermination of the borrowing
base thereunder. The term of the Credit Facilities has been
renewed and extended for an additional year, to May 30, 2019, and
remains extendible annually thereafter at the option of the
Company, subject to lender approval. If not renewed in May 2019,
the Credit Facilities would enter a six-month term-out period. As
part of the renewal of the Credit Facilities, the borrowing base
under the Credit Facilities has been confirmed at $100 million
(previously $120 million), comprised of a $25 million operating
facility and a $75 million syndicated facility (previously $95
million). The next semi-annual redetermination is scheduled for
November 2018. Other than approximately $57 million
outstanding under the Credit Facilities as at March 31, 2018, the
Company has no debt maturities until 2020, providing the Company
with approximately $43 million of available liquidity, before
deducting outstanding letters of credit.
Bellatrix Exploration Ltd. is a publicly traded
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, with highly
concentrated operations in west central Alberta, principally
focused on profitable development of the Spirit River liquids rich
natural gas play.
For further information, please
contact:
Steve Toth, CFA, Vice President, Investor
Relations & Corporate Development (403) 750-1270
Bellatrix Exploration Ltd.1920,
800 – 5th Avenue SWCalgary, Alberta, Canada T2P 3T6Phone: (403)
266-8670Fax: (403) 264-8163www.bxe.com
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 "forecast", "believe", "expect",
"position", "maintain", "continue", "plan", "future", "estimate",
"intend", "strategy", "anticipate", "enhance" and similar
expressions are intended to identify forward-looking statements.
More particularly and without limitation, this document contains
forward-looking statements concerning the expectation that
Bellatrix has the ability to proactively manage the impact of weak
daily AECO natural gas prices; the expectation that Bellatrix's
ample takeaway capacity and egress will allow Bellatrix to produce
curtailed volumes when daily natural gas prices are higher;
expected second quarter average production volumes; the intent of
the Company to maintain a flexible capital program in the second
half of 2018 focused on optimizing forecast return on invested
capital through focused development of the Spirit River liquids
rich natural gas play and higher liquids weighted opportunities in
the Cardium play; Bellatrix's anticipated resumption of field
activity in mid-July; and the anticipated benefits of the Alder
Flats Plant. 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 and dispositions, delays resulting from or
inability to obtain required regulatory approvals, actions taken by
the Company's lenders that reduce the Company's available credit
and ability 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 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;
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, 2017) 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.bxe.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.
INITIAL RATES OF PRODUCTION: References in this
press release to initial production or "IP" rates associated with
certain wells are useful in confirming the presence of
hydrocarbons, however such rates are not determinative of the rates
at which such wells will commence production and decline thereafter
and are not indicative of long term performance or of ultimate
recovery. While encouraging, readers are cautioned not to place
reliance on such rates in calculating the aggregate production for
the Company. The Company cautions that such production rates should
be considered to be preliminary.