Bellatrix Closes $240 Million Cardium JV With TCA Energy

Formed a JV to drill and develop the Ferrier Cardium area of West Central Alberta.

Bellatrix Exploration Ltd. (NYSE: BXE) has successfully closed the $240 million joint venture partnership with TCA Energy Ltd., the company announced Nov. 11.

Pursuant to the agreement forming the joint venture, Bellatrix and TCA will drill and develop lands in the Ferrier Cardium area of West Central Alberta, with the program to be completed by Dec. 31, 2014. TCA will contribute $120 million, representing a 50% share, towards the capital program for the drilling of an expected 63 gross wells, and in exchange, will receive 35% of Bellatrix's working interest until payout being recovery of TCA's capital investment plus a 15% internal rate of return on the total program, and thereafter reverting to 25% of Bellatrix's working interest. As part of this agreement, TCA will be participating in 14 gross wells – as included in the total expected 63 gross well program – for wells that have been drilled since Jan. 1, 2013, resulting in net proceeds of $16.7 million that was received by Bellatrix at closing.

The net proceeds from the disposition were initially used to reduce the company's indebtedness, and ultimately will be directed towards the continued development of its Cardium and Mannville asset base.

TCA is a Canadian incorporated special purpose vehicle for Troika Resources Private Equity Fund which is based in Seoul, Korea and managed by KDB Bank, SK Energy and Samchully AMC.

Bellatrix Exploration Ltd. is an independent energy compay engaged in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. The company is headquartered in Calgary.