Bellatrix Exploration Ltd., Calgary, Alberta, (Toronto: BXE) has entered into a joint venture agreement with a Seoul, Korea-based company to accelerate development of Bellatrix's extensive undeveloped Cardium land holdings in west-central Alberta. Under the terms of the agreement, the Korean company will contribute 50%, or CDN$150 million, to a $300 million joint venture to participate in an expected 83 Cardium well program. Under the agreement, the JV partner will earn 33% of Bellatrix's working interest in the Cardium well program until payout (being recovery of the JV partner's capital investment plus an 8% return on investment) on the total program, which is expected to occur prior to a maximum of 7 years, reverting to a 20% working interest after payout. The effective date of the agreement is April 1, 2013 but with the ability of the JV partner to elect to invest in the wells drilled between January 1 up to April 30, 2013 . Certain conditions precedent are expected to be satisfied or waived by April 22, 2013 which is expected to enable closing to occur on or before April 30 , 2013. Bellatrix will be required to provide a guarantee of the return of the JV partner's capital investment of up to $30 million if not recovered within 7 years.
As a result of the joint venture, Bellatrix's net capital expenditure plan for 2013 is expected to increase from the previously announced $180 million level to between $230 and $240 million not including JV partner capital. Based on the timing of proposed expenditures, downtime from anticipated plant turnarounds, completion of anticipated infrastructure and normal production declines, execution of the increased 2013 capital expenditure plan is anticipated to provide average daily production of 24,000 to 25,000 barrels of oil equivalent (BOE) per day. The company is anticipating a 2013 exit rate of 30,000 to 31,000 BOE per day.
On December 14, 2012 , Bellatrix acquired an additional 11 gross and net sections of highly prospective Cardium and Notikewin/Falher lands in the Ferrier area of west central Alberta. This acquisition is anticipated to provide an additional 37 net drilling locations in the Cardium, nine net locations in the Notikewin/Falher and an additional 66 net locations in the Duvernay formation.
Bellatrix continues to focus on growth by development of its core Cardium and Notikewin/Falher assets utilizing its large inventory of geological prospects. The company has developed an inventory of 692 net remaining Cardium locations and 401 net Notikewin/Falher locations representing a net remaining capital requirements of $4.34 billion based on current costs. As of December 31, 2012 , Bellatrix has approximately 206,638 net undeveloped acres and including all opportunities has in excess of 1,700 net exploitation drilling opportunities identified, with capital requirements of $8.17 billion based on current costs representing over 40 years of drilling inventory based on current annual cash flow. The company continues to focus on adding Cardium and Notikewin prospective lands.