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.
SOURCE: Bellatrix Exploration Ltd
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.