Bellatrix Announces Repurchase of Grafton Joint Venture Assets
October 04 2018 - 7:30AM
Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX,
NYSE: BXE) announces that it has entered into an agreement to
acquire all the remaining assets earned by Grafton Energy Co I Ltd.
(“Grafton”) under the previously announced joint venture
arrangement entered into in 2013 (the “Grafton JV”). Upon
completion of the transaction, the agreement governing the Grafton
JV will be terminated and each party will release the other from
all existing and future claims and obligations thereunder.
Transaction Highlights
The acquired assets are located in Bellatrix’s
core Ferrier area of west central Alberta and include approximately
2,200 boe/d (79% natural gas, 21% liquids) of low decline
production, 44 gross (20.4 net) wells, and 9,920 gross (4,810 net)
acres of land. Bellatrix previously acquired a portion of the
Grafton JV assets in June 2016. The transaction is consistent
with Bellatrix's strategy to consolidate operated production and
acreage within its core area.
Total consideration payable to Grafton of
approximately $13 million includes $7.66 million in cash and 4.0
million common shares of Bellatrix. The transaction has an
effective date of August 1, 2018, is expected close early in the
fourth quarter of 2018, and is subject to approval by Grafton’s
lender and its shareholders. Bellatrix expects to file a prospectus
supplement under its existing $500 million base shelf prospectus to
qualify the issuance of the common shares to Grafton.
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 "position", "continue", "opportunity",
"expect", "plan", "maintain", "estimate", "assume", "target",
"believe" "forecast", "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 expected impacts
of the Grafton acquisition; expectations regarding the production
declines associated with the assets; and the expected closing date
of the acquisition. To the extent that any forward-looking
information contained herein constitute a financial outlook, they
were approved by management as at the date of this press release
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, failure to meet the conditions for closing the
acquisition, 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; the ability for all parties to
satisfy all conditions for closing the acquisition; 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 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.