CALGARY, Nov. 28, 2011 /CNW/ - Bellatrix Exploration Ltd. ("Bellatrix"
or the "Company") is pleased to announce that it has completed the
mid-year review of its 2011 credit facilities and provides a corporate
A syndicate of banks led by National Bank of Canada recently completed
its semi-annual borrowing base redetermination for November 30, 2011.
Based on Bellatrix's 2011 mid-year review, effective November 25, 2011,
the Company's borrowing base was increased by $30 million to $170
million through to the next scheduled borrowing base determination to
be completed on or before May 31, 2012. This 21% increase from the
previous borrowing base of $140 million is a direct result of
Bellatrix's strong 2011 drilling results which delivered significant
reserves and production growth in the first half of 2011. The increased
credit facilities will be available to finance Bellatrix's ongoing
capital expenditures, working capital requirements and for general
The Company's expanded credit facilities consists of a $15 million
demand operating facility provided by National Bank of Canada and an
$155 million extendible revolving term credit facility provided by
National Bank of Canada, Alberta Treasury Branches and HSBC Bank
Canada. Amounts borrowed under the credit facility will bear interest
at a floating rate based on the applicable Canadian prime rate, U.S.
base rate or LIBOR margin rate, plus between 1.00% and 3.50%, depending
on the type of borrowing and the Company's debt to cash flow ratio. A
standby fee is charged of between 0.50% and 0.875% on the undrawn
portion of the credit facilities, depending on the Company's debt to
cash flow ratio.
The Company continues to anticipate the successful achievement of
exiting 2011 in line with its production guidance of 15,000 boe/d.
Preparation is underway for the start of the first quarter of 2012
program with four rigs currently scheduled to commence drilling in
early January 2012. The Company recently announced that for 2012,
Bellatrix will continue to be active in drilling its two core resource
plays, the Cardium oil and Notikewin condensate rich gas, utilizing
horizontal drilling multi fracturing technology. In addition, Bellatrix
currently plans to drill its first horizontal well in the emerging
Duvernay play in the first quarter of 2012. An initial capital budget
of $180 million has been set for fiscal 2012. Based on the timing of
proposed expenditures, downtime for anticipated plant turnarounds and
normal production declines, execution of the 2012 budget is anticipated
to provide 2012 average daily production of approximately 16,500 boe/d
to 17,000 boe/d and an exit rate of approximately 18,000 boe/d to
The Company's updated corporate presentation is available at www.bellatrixexploration.com.
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 and convertible debentures of Bellatrix trade on the Toronto
Stock Exchange ("TSX") under the symbols BXE and BXE.DB.A,
Forward looking statements: Certain information set forth in this news
release, including management's assessments of the future plans and
operations, production estimates for 2011 and 2012, projected uses of
the increased credit facilities, ability to execute on 2011and 2012
capital plans and timing thereof may contain forward-looking
statements, and necessarily involve risks and uncertainties, certain of
which are beyond Bellatrix's control, including risks associated with
oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets and other economic and
industry conditions, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling
services, incorrect assessment of value of acquisitions and failure to
realize the benefits therefrom, delays resulting from or inability to
obtain required regulatory approvals, the lack of availability of
qualified personnel or management, stock market volatility and ability
to access sufficient capital from internal and external sources and
economic or industry condition changes. Actual results, performance or
achievements could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no
assurance can be given that any events anticipated by the
forward-looking statements will transpire or occur, or if any of them
do so, what benefits that Bellatrix will derive therefrom. In addition,
there may be circumstances where the increased credit facilities may be
used other than as described herein for business reasons that
management believes are in the best interests of the Company.
Additional information on these and other factors that could affect
Bellatrix are included in reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at Bellatrix's website www.bellatrixexploration.com. Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and Bellatrix
does not undertake any obligation to update publicly or to revise any
of the included forward looking statements, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities law.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
SOURCE Bellatrix Exploration Ltd.
For further information:
BELLATRIX EXPLORATION LTD.
| Raymond G. Smith, P.Eng. || || Edward J. Brown, CA || || Troy Winsor |
| President & CEO || || Vice President, Finance & CFO || || Investor Relations |
| (403) 750-2420 || || (403) 750-2655 || || (800) 663-8072 |