2011-02-15-2011-01-14

To acquire 100% WI in 95,600 acres in Seal area of AB and Lloydminster area of SK, gainging 10.5 MMBOE 2P.

Baytex Energy Corp., Calgary, (Toronto, NYSE: BTE) plans to acquire heavy oil assets in northern Alberta and western Saskatchewan and an undisclosed private company for $156.5 million.

The assets are being acquired through a combination of a corporate acquisition of a private company and an asset acquisition.

The deal values production at C$60,200 per barrel equivalent per day and proved and probable reserves at C$14.90 per barrel, according to Baytex.

The assets include 100% working interest in 95,600 acres of undeveloped land in the Seal area of Albert and the Lloydminster area of Saskatchewan. Production for the rest of 2011 is forecast at approximately 2,600 barrels of oil (65% from Seal area).

Proved and probable reserves are approximately 10.5 million barrels equivalent.

Annualized net operating income from the acquired assets is estimated to be approximately $37 million, based on the current WTI price strip of approximately US$95 per barrel.

Pro forma, Baytex will have production guidance for 2011 at 49,000 to 50,000 barrels equivalent per day. Also, Baytex will hold a 100% working interest in approximately 156,000 net acres of undeveloped land at Seal.

Baytex will fund the deal with its revolving credit facility.

The deal is expected to close during the first quarter of 2011.