Bellatrix Closes $200 Million JV, $53 Million Asset Sale

Bought 50% WI in producing assets, an operated compressor station and gathering system and related acreage in the Baptiste area of W. Central Alberta.

Bellatrix Exploration Ltd. (NYSE: BXE; TO: BXE) closed the asset sale and joint venture with the Canadian subsidiaries of Daewoo International Corp. and Devonian Natural Resources Private Equity Fund, the company announced on Sept. 2.

Under the terms of the associated agreements, Bellatrix sold, effective July 1, to the Canadian subsidiaries of Daewoo and Devonian an aggregate 50% of the company's working interest share of its producing assets, an operated compressor station and gathering system and related land acreage in the Baptiste area of West Central Alberta for gross consideration of C $52.5 million. The sold assets are producing 268 barrels of oil equivalent per day (BOE/d) of 67% gas and 33% oil and liquids net to the sold assets and include 3,858 net acres of Cardium rights and 1,119 net acres of Mannville rights.

The joint venture, which is effective as of July 1, will encompass a multiyear commitment to jointly develop the aforementioned acreage in Ferrier and Willesden Green of West Central Alberta encompassing 70 gross wells with anticipated total capital expenditures to the joint venture of $200 million .

As previously announced, on closing Bellatrix has increased its net capital expenditure plan for 2013 to $235 million , and utilized the net proceeds from the disposition to reduce the company's indebtedness, and ultimately will direct it to the continued development of its Cardium and Mannville asset base.

Bellatrix Exploration Ltd. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. The company is headquartered in Calgary.