Bellatrix Exploration Ltd. Announces Third Quarter 2015 Financial Results

November 5, 2015 12:05 AM

CALGARY, Nov. 5, 2015 /CNW/ – Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE:
BXE) announces its financial and operating results for the three and
nine months ended September 30, 2015. This press release contains
forward-looking statements. Please refer to our cautionary language on
forward-looking statements and the other matters set forth at the end
of this press release and the beginning of the Management's Discussion
and Analysis (the “MD&A”) for the three and nine months ended September
30, 2015 and 2014. Bellatrix's unaudited condensed consolidated
financial statements and notes, and the MD&A are available on
Bellatrix's website at www.bellatrixexploration.com, and are filed on SEDAR at www.sedar.com.

THIRD QUARTER 2015 HIGHLIGHTS
		Three months ended September 30,		Nine months ended September 30,
		2015	2014	2015	2014
SELECTED FINANCIAL RESULTS
(CDN$000s except share and per share amounts)
Total revenue ⁽²⁾		82,066	137,411	261,193	453,307
Funds flow from operations ⁽²⁾		26,598	60,341	79,833	208,996
	Per basic share ⁽³⁾	$0.14	$0.32	$0.42	$1.16
	Per diluted share ⁽³⁾	$0.14	$0.31	$0.42	$1.14
Cash flow from operating activities		22,015	60,006	61,042	204,369
	Per basic share ⁽³⁾	$0.11	$0.31	$0.32	$1.13
	Per diluted share ⁽³⁾	$0.11	$0.31	$0.32	$1.12
Adjusted net profit (loss) ⁽²⁾		(12,569)	29,622	(44,657)	99,551
	Per basic share ⁽³⁾	($0.07)	$0.15	($0.23)	$0.55
	Per diluted share ⁽³⁾	($0.07)	$0.15	($0.23)	$0.54
Net profit (loss)		(50,460)	44,874	(87,577)	108,293
	Per basic share ⁽³⁾	($0.26)	$0.23	($0.46)	$0.60
	Per diluted share ⁽³⁾	($0.26)	$0.23	($0.46)	$0.59
Capital – exploration and development		19,578	138,545	138,376	422,594
Capital – corporate assets		177	1,656	3,288	7,817
Property acquisitions		–	27,589	749	27,571
Capital expenditures – cash		19,755	167,790	142,413	457,982
Property dispositions – cash		(8,496)	–	(10,307)	(8,374)
Total net capital expenditures – cash		11,259	167,790	132,106	449,608
Other non-cash items		2,465	3,642	6,019	12,233
Total capital expenditures – net ⁽²⁾		13,724	171,432	138,125	461,841
Bank debt		341,030	402,655	341,030	402,655
Senior notes		320,709	–	320,709	–
Adjusted working capital deficiency ⁽²⁾		61,715	67,462	61,715	67,462
Total net debt ⁽²⁾		723,454	470,117	723,454	470,117
Total assets		2,160,522	1,996,558	2,160,522	1,996,558
Total shareholders' equity		1,165,587	1,190,258	1,165,587	1,190,258

SELECTED OPERATING RESULTS				Three months ended September 30,		Nine months ended September 30,
				2015	2014	2015	2014
Average daily sales volumes
	Crude oil, condensate and NGLs	(bbl/d)		11,993	11,361	12,036	12,222
	Natural gas	(mcf/d)		169,704	157,244	177,917	145,190
	Total oil equivalent	(boe/d)⁽⁴⁾		40,277	37,838	41,689	36,420
Average realized prices
	Crude oil and condensate	($/bbl)		51.59	90.39	55.94	97.70
	Crude oil and condensate (including risk management ⁽¹⁾)	($/bbl)		54.00	81.36	57.14	86.76
	NGLs (excluding condensate)	($/bbl)		11.03	43.20	14.59	47.43
	Crude oil, condensate and NGLs	($/bbl)		25.57	65.78	31.92	73.77
	Natural gas	($/mcf)		3.24	4.44	3.04	5.08
	Natural gas (including risk management⁽¹⁾)	($/mcf)		3.04	4.30	3.00	4.51
	Total oil equivalent	($/boe)⁽⁴⁾		21.27	38.67	22.21	45.01
	Total oil equivalent (including risk management⁽¹⁾)	($/boe)⁽⁴⁾		21.12	36.77	22.37	40.83

Net wells drilled				5.4	17.5	11.4	52.0

Selected Key Operating Statistics
	Operating netback ⁽²⁾		($/boe)⁽⁴⁾	11.72	22.37	10.84	28.18
	Operating netback ⁽²⁾ (including risk management⁽¹⁾)		($/boe)⁽⁴⁾	11.58	20.47	11.01	23.99
	Transportation		($/boe)⁽⁴⁾	1.34	1.25	1.27	1.22
	Production expenses		($/boe)⁽⁴⁾	7.38	8.85	8.18	8.27
	General & administrative		($/boe)⁽⁴⁾	1.34	1.75	1.67	1.63
	Royalties as a % of sales (after transportation)			9%	19%	13%	18%
COMMON SHARES
Common shares outstanding				191,963,910	191,488,243	191,963,910	191,488,243
Share options outstanding				13,193,499	11,217,837	13,193,499	11,217,837
Fully diluted common shares outstanding				205,157,409	202,706,080	205,157,409	202,706,080
Weighted average shares ⁽³⁾				191,963,910	191,351,567	191,959,099	180,347,407
SHARE TRADING STATISTICS
TSX and Other ⁽⁵⁾
(CDN$, except volumes) based on intra-day trading
High				3.30	9.68	4.46	11.65
Low				1.80	6.81	1.80	6.81
Close				2.04	6.88	2.04	6.88
Average daily volume				1,667,953	2,439,662	2,143,204	2,521,746
NYSE
(US$, except volumes) based on intra-day trading
High				2.57	9.14	3.81	10.70
Low				1.38	6.11	1.38	6.11
Close				1.52	6.15	1.52	6.15
Average daily volume				783,798	446,638	800,899	327,729

⁽¹⁾	The Company has entered into various commodity price risk management contracts which are considered to be economic hedges. Per unit metrics after risk management include only the realized portion of gains or losses on commodity contracts. The Company does not apply hedge accounting to these contracts. As such, these contracts are revalued to fair value at the end of each reporting date. This results in recognition of unrealized gains or losses over the term of these contracts which is reflected each reporting period until these contracts are settled, at which time realized gains or losses are recorded. These unrealized gains or losses on commodity contracts are not included for purposes of per unit metrics calculations disclosed.
⁽²⁾	The terms “funds flow from operations”, “funds flow from operations per share”, “adjusted net profit (loss)”, “total net debt”, “operating netbacks”, “total capital expenditures – net”, “adjusted working capital deficiency (excess)”, and “total revenue” do not have a standard meaning under generally accepted accounting principles (“GAAP”). Refer to “Non-GAAP and other measures” disclosed at the end of this Press Release.
⁽³⁾	Basic weighted average shares for the three and nine months ended September 30, 2015 were 191,963,910 (2014: 191,351,567), and 191,959,099 (2014: 180,347,407), respectively.
	In computing weighted average diluted profit (loss) per share, weighted average diluted cash flow from operating activities per share, and weighted average diluted funds flow from operations per share for the three and nine months ended September 30, 2015, a total of nil (2014: 1,685,048), and nil (2014: 2,331,052) common shares were added to the denominator as a consequence of applying the treasury stock method to the Company's outstanding share options, resulting in diluted weighted average common shares of 191,963,910 (2014: 193,036,615), and 191,959,099 (2014: 182,678,459), respectively.
⁽⁴⁾	A boe conversion ratio of 6 mcf: 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
⁽⁵⁾	TSX and Other includes the trading statistics for the Toronto Stock Exchange (“TSX”) and other Canadian trading markets.

PRESIDENT'S MESSAGE

Bellatrix's third quarter results showcase the profitability of
Bellatrix's Spirit River play and the strategic benefits of the
Bellatrix O'Chiese Nees-Ohpawganu'ck deep-cut gas plant in the Alder
Flats area of Alberta (“Alder Flats Plant”) and Bellatrix's associated
firm service transportation arrangements. Bellatrix's quarterly results
also demonstrate continued benefits from capital cost reductions and
efficiency gains. Despite the challenges associated with the current
commodity price environment, Bellatrix maintains a strong liquidity
position, with $259 million of undrawn capacity on the Company's $600
million bank credit facility at September 30, 2015, and our third
quarter capital plan generated free cash flow, which together with
proceeds from a working interest disposition in a pipeline allowed us
to reduce outstanding bank debt by approximately $15 million in the
quarter.

Total corporate production volumes were maintained through the third
quarter despite only spending 74% of funds flow from operations, a
testament to the highly competitive capital efficiencies in our Spirit
River play and use of promoted joint venture (“JV”) capital. Despite
drilling only 11.4 net wells through the nine months ended September
30, 2015 compared to 52.0 net wells during the comparative period in
2014, Bellatrix has not only offset production declines, but has grown
average production volumes by 14% over the comparative nine month
period. The Company has made several key advancements in 2015 including
material improvements in our operating, general and administrative, and
royalty cost profiles, in addition to proactive management of firm
service processing and transportation agreements which have
significantly mitigated adverse impacts from third party plant and
pipeline restrictions.

Bellatrix maintains a core position in the Spirit River play which
continues to deliver industry leading returns on investment, making it
one of the most profitable plays in the Western Canadian Sedimentary
Basin due to its low supply cost. Bellatrix's operational results year
to date in the Spirit River continue to validate an IP365 capital
efficiency estimate of $8,000/boe/d. With an identified inventory of
388 net well locations in the Spirit River formation, Bellatrix
maintains more than a decade of drilling opportunity in this low supply
cost resource play, providing a foundation for future growth and
profitable returns for shareholders.

STRONG THIRD QUARTER PERFORMANCE

Third quarter results were strong across all key operational and
financial metrics. Third quarter average production volumes and
operating cash flow were particularly strong, owing to a combination of
higher production volumes, lower operating costs, lower royalty rates,
and lower G&A costs.

Bellatrix realized its first full quarter of contribution from the Alder
Flats Plant which averaged 100% capacity utilization during the third
quarter. The Alder Flats Plant has provided a structural improvement in
corporate operating costs for the Company and improves our
competitiveness and long term profitability.

In addition to lower operating costs, Bellatrix's $300 million
investment in strategic infrastructure over the past two and a half
years, including the Alder Flats Plant, has provided a shift downward
in average corporate royalty rates as a result of increased gas cost
allowance (“GCA”) credits associated with the facilities and
infrastructure. Corporate royalty rates have also declined as a result
of the lower commodity prices.

The Company's 2015 corporate operating and financial guidance
expectations remain firmly intact, and year to date performance has met
or exceeded full year average guidance expectations. Actual year to
date production volumes remain in-line with the high end of the
previously announced guidance range, positioning the Company to grow
2015 full year average daily production volumes by approximately 9%
relative to 2014, notwithstanding a more than 69% decrease in the
Company's overall capital budget year over year.

Bellatrix maintains an acute focus on operational efficiency
improvements and cost compression across all areas of our business and
results to date have demonstrated our commitment to improving overall
corporate sustainability and profitability.

2015 Guidance
		Nine Months Ended Sept 30, 2015	Full Year Average 2015 Guidance	Actual Versus Guidance
Average daily production (boe/d)
	Low range	41,689	40,500	+3%
	High range	41,689	41,500	–
Average product mix
	Crude oil, condensate and NGLs (%)	30	30	–
	Natural gas (%)	70	70	–
Capital spending ($ millions)⁽¹⁾		142	160	–
Expenses ($/boe)
	Production	8.18	8.25	-1%
	General and administrative (“G&A”) ⁽²⁾	1.67	1.65	–

⁽¹⁾	Capital spending includes exploration and development capital projects and corporate assets, and excludes property acquisitions and dispositions.
⁽²⁾	G&A expenses are after capitalized G&A and recoveries.

PROACTIVELY MANAGED FIRM SERVICE ARRANGMENTS MITIGATING TAKEAWAY
CONSTRAINTS

The industry continued to experience system wide curtailment of
interruptible and firm service transportation through the third quarter
of 2015 on the Canadian mainline gas transmission system due to ongoing
maintenance and pipeline integrity management work, including
curtailments at certain facilities utilized by Bellatrix. In the third
quarter, Bellatrix's volumes were curtailed on average by approximately
1,000 boe/d due to a major turnaround at a non-operated facility and
continued reductions and allocated constraints along the Canadian
mainline gas transmission system.

Despite these facility and system constraints, Bellatrix has been able
to maintain production levels through proactive management of
Bellatrix's firm capacity on the Canadian mainline gas transmission
system. Additionally, the utilization of Bellatrix's infrastructure
provides significant flexibility to redirect volumes to unaffected
plants and delivery points along the mainline system mitigating the
impact of system constraints. Bellatrix maintains an enviable position
in west central Alberta currently holding excess firm capacity on the
Canadian mainline gas transmission system relative to current Company
volumes. Bellatrix is positioned to grow volumes over the near to
medium term within an industry that remains otherwise constrained due
to limited access to incremental growth outlets for natural gas volumes
along the principal areas of development in the Western Canadian
Sedimentary Basin. Bellatrix has the ability to quickly respond to a
commodity price recovery and to grow volumes under existing and future
committed firm service arrangements, proving a clear and differentiated
strategic advantage relative to many of our industry peers. The minor
impact to Bellatrix third quarter corporate volumes relative to
numerous industry peers provides a distinct indication of our strategic
advantage going forward.

Recently updated Canadian mainline gas transmission system maintenance
schedules indicate that it is unlikely that any significant
interruptible transportation capacity will be available in the fourth
quarter 2015, and firm service will continue to have varied
restrictions which Bellatrix will continue to proactively manage.

CAPITAL COST REDUCTIONS AND CONTINUED EFFICIENCY GAINS

Our third quarter results also reflect a continued focus on cost
reduction and optimization efforts. Cost initiatives across drilling,
completion, equipping and tie-in activities such as redesigned drilling
parameters that have reduced average days on location, using monobore
well configurations where practical, reduced temporary production
tie-ins, minimized lease sizes, plus the impact from increased
competitive pricing of services have resulted in reduced well costs
year to date. Average drill, complete, equip and tie-in costs for the
Spirit River program in the third quarter of 2015 have averaged
approximately $4.0 million, providing further enhanced profitability of
the Company's development program.

Operating costs in the third quarter of $7.38/boe represents a
sequential quarter over quarter improvement of approximately 14%. The
inaugural first full quarter impact of the Alder Flats Plant was a
principal contributor of the cost reductions, in addition to further
cost containment initiatives realized across a number of categories at
the field level. Average operating costs year to date of $8.18/boe
compare favourably to our full year guidance of $8.25/boe. Looking
ahead, the Company forecasts operating costs to average approximately
$7.50/boe through 2016, assuming capital and production activity levels
remain consistent with those achieved in 2015.

Net general and administrative (“G&A”) costs (after capitalized costs
and recoveries) were down 26% to $1.34/boe in the third quarter
compared with $1.81/boe in the second quarter of 2015, as the benefits
of previously announced cost reduction initiatives were realized in the
third quarter. The cost reduction initiatives are apparent from a
comparison of gross G&A costs forecast in 2015 to be approximately $11
million lower than 2014. Net G&A costs are expected to decline year
over year as overall gross G&A cost reductions have more than offset
reduced G&A recoveries from partners due to lower activity levels.

Royalty rates have declined materially due to a combination of lower
commodity prices and increased GCA credits associated with
infrastructure and facilities investments by Bellatrix.

The cash cost benefit in the third quarter from the combination of lower
operating costs, lower G&A, and reduced royalty rates toward the
corporate netback was $2.38/boe, representing a 19% improvement
compared with the second quarter of 2015.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Production in the third quarter 2015 averaged 40,277 boe/d (70% natural
gas weighted). Third quarter 2015 production increased 6% from an
average of 37,838 boe/d realized in the third quarter of 2014.

Net capital spending on exploration and development activities of $11.3
million included $17.5 million on drilling, completion and equipping
activity, $2.1 million in facilities and equipment spending, offset by
a disposition of a working interest in a pipeline for $8.5 million.
Bellatrix underspent cash flow during the third quarter, using free cash
flow and proceeds of approximately $8.5 million from a working interest
disposition in a pipeline to pay down bank debt by approximately $15
million in the quarter. Total net debt of $723 million at September 30,
2015 increased quarter over quarter despite the reduction in bank debt
and working capital as a result of an unrealized foreign exchange loss
of approximately $22.4 million recognized in the third quarter when USD
denominated Senior Notes (as defined below) was marked to market at
September 30, 2015.
Operating costs averaged $7.38/boe in the third quarter 2015 compared
with $8.58/boe in the second quarter of 2015. Excluding adjustments
related to prior periods, production expenses per boe for the nine
months ended September 30, 2015 were $7.85/boe, below our current full
year corporate guidance.
In the third quarter of 2015, Bellatrix drilled and/or participated in
12 gross (5.4 net) Spirit River liquids-rich gas wells. Eleven of the
twelve operated Spirit River liquids-rich gas wells were drilled
leveraging capital under our joint venture with Grafton Energy Co I
Ltd. (the “Grafton JV”).
Bellatrix successfully negotiated the removal of two major financial
covenants governing its syndicated credit facilities providing
additional financial flexibility. At September 30, 2015, Bellatrix had
$259.0 million of undrawn capacity on its credit facility, excluding
outstanding letters of credit of $6.4 million that reduce the amount
otherwise available to be drawn on the facility.
Bellatrix continued to add to its risk management and hedging program
through the third quarter and subsequent to September 30, 2015.
Bellatrix increased both its AECO basis hedging protection in 2017 and
added Edmonton Sweet differential hedges in 2016, while also protecting
25% of the principal amount, or US$62.5 million, of its USD denominated
Senior Notes with a value date of May 2020, at $1.3078 USD/CAD.
Bellatrix's hedging program is part of its overall risk management
strategy focused on providing reduced price risk volatility, and
greater assurance of future revenue and cash flow which drive the
capital and reinvestment decisions within our business.
Adjusted net profit (loss) for the three and nine months ended September
30, 2015 was a loss of $12.6 million and $44.7 million, respectively.
The adjusted net loss of $44.7 million incurred in the first nine
months of 2015, as compared to an adjusted net profit of $99.6 million
realized in the same period in 2014, was primarily due to the continued
weak commodity price environment throughout the first nine months of
2015. Realized prices in the first nine months of 2015 decreased by 43%
in crude oil and condensate, 69% in NGLs, and 40% in natural gas from
the first nine months of 2014.
Total revenue decreased by 40% to $82.1 million for the three months
ended September 30, 2015, compared to $137.4 million realized in the
third quarter of 2014. Total crude oil, condensate, and NGL revenues
contributed 36% of total revenue realized in the third quarter of 2015,
compared to 52% in the third quarter of 2014.
Funds flow from operations generated in the three months ended September
30, 2015 was $26.6 million ($0.14 per basic share), a decrease of 56%
from $60.3 million ($0.32 per basic share) in the third quarter of
2014. Funds flow from operations generated in the nine months ended
September 30, 2015 was $79.8 million ($0.42 per basic share), a
decrease of 62% from $209.0 million ($1.16 per basic share) in the
comparative 2014 period.
The corporate operating netback realized for the three months ended
September 30, 2015 was $11.72/boe, down only 1% compared to the second
quarter of 2015 despite an 8% drop in realized pricing in the third
quarter compared with the second quarter of 2015. The Company
maintained its netback due to lower royalties and operating costs. On a
year over year basis, the third quarter 2015 operating netback before
risk management decreased by 48% compared to the third quarter of
2014. After including commodity risk management contracts, the
corporate operating netback for the third quarter of 2015 was
$11.58/boe, a decrease of 43% compared to $20.47/boe in the third
quarter of 2014.
The corporate royalty rate in the three months ended September 30, 2015
averaged 9% of sales (after transportation), compared with 19% in the
third quarter of 2014. Lower average royalty rates year over year
include the impact from lower commodity prices as well as increased GCA
credits associated with infrastructure and facilities investments by
Bellatrix.
Net G&A expenses (after capitalized costs and recoveries) for the three
and nine months ended September 30, 2015 were $5.0 million ($1.34/boe)
and $19.0 million ($1.67/boe), compared to $6.1 million ($1.75/boe) and
$16.1 million ($1.63/boe) in the comparative 2014 periods,
respectively. Net G&A costs have improved to $1.34/boe in the third
quarter of 2015 compared to $1.81/boe realized in the second quarter of
2015 as a result of the impact of cost reduction initiatives
implemented by the Company which have more than offset reduced cost
recoveries from partners compared with the prior quarter.
As at September 30, 2015, Bellatrix had approximately 346,931 net
undeveloped acres of land in Alberta, British Columbia, and
Saskatchewan.
At September 30, 2015, Bellatrix performed an assessment of indicators
of impairment on all of the Company's Cash Generating Units (“CGU”) and
determined that an impairment loss of $37.4 million before taxes was
incurred in the period.
At September 30, 2015, Bellatrix had approximately $1.70 billion in tax
pools available for deduction against future income.

OUTLOOK

Bellatrix currently has two drilling rigs operating in the field, and
anticipates fourth quarter capital expenditures to be approximately $20
million. This level of capital spending continues to represent less
than forecast cash flow from operations thereby providing further
anticipated reductions in bank debt through year end while maintaining
average production volumes in the fourth quarter similar to third
quarter levels. The Company continues to add high quality production
at industry leading capital efficiencies while leveraging JV capital.

The Company's foresight to secure firm service processing capacity not
only through processing facilities but also along the Canadian mainline
gas transmission system, provides a distinct strategic advantage in the
current market. Industry natural gas volume growth will remain
constrained for several years until additional takeaway capacity is
constructed and expanded. Bellatrix's combination of a top quality
asset base and core position in the highly profitable Spirit River
play, and excess firm takeaway and processing capacity provide the
capability to facilitate growth in corporate volumes over the near to
long term.

The second quarter of 2015 represented the high watermark in terms of
capital spending for the Company as we completed construction of the
Alder Flats Plant, but now with the Alder Flats Plant fully
contributing to our corporate results, the Company has realized a step
change down in operating costs and royalties payable, which enhances
the profitability of our business. Capital spending on infrastructure
during the third quarter represented only 10% of gross exploration and
development capital highlighting the reduced outlay required given the
significant infrastructure footprint in place.

Bellatrix remains focused on debt reduction initiatives including a
focus through year end which contemplates spending under our forecast
cash flow while maintaining total company production volumes. Our
liquidity position remains strong with $259 million of undrawn capacity
(excluding letters of credit) on the $600 million credit facility at
September 30, 2015. The Company maintains significant balance sheet
flexibility to manage effectively through the commodity price cycle.
Bellatrix continues to take a patient and pragmatic approach in
managing the business through these turbulent times, ensuring alignment
of corporate and shareholder interests, while preserving and enhancing
the long term value of the Company for our shareholders.

(“Raymond G. Smith”)

Raymond G. Smith, P.Eng.
President and CEO
November 4, 2015

OPERATIONAL REVIEW

Sales Volumes
		Three months ended September 30,			Nine months ended September 30,
			2015	2014	2015	2014
	Crude oil and condensate	(bbl/d)	4,300	5,566	5,046	6,403
	NGLs (excluding condensate)	(bbl/d)	7,693	6,065	6,990	5,819
Total crude oil, condensate and NGLs		(bbl/d)	11,993	11,631	12,036	12,222
	Natural gas	(mcf/d)	169,704	157,244	177,917	145,190
Total sales volumes (6:1 conversion)		(boe/d)	40,277	37,838	41,689	36,420

Sales volumes for the three months ended September 30, 2015 averaged
40,277 boe/d, an increase of 6% from an average of 37,838 boe/d
realized in the third quarter of 2014. The weighting towards crude
oil, condensate and NGLs for the three months ended September 30, 2015
was 30%, compared to 31% in the third quarter of 2014.

Sales volumes for the nine months ended September 30, 2015 averaged
41,689 boe/d, an increase of 14% from an average of 36,420 boe/d
realized in the first nine months 2014. The weighting towards crude
oil, condensate and NGLs for the nine months ended September 30, 2015
was 29%, compared to 34% in the same period in 2014.

During the first nine months of 2015, the industry experienced system
wide curtailment of interruptible and firm service transportation on
the Canadian mainline gas transmission system due to ongoing
maintenance and pipeline integrity management work and there were also
more specific curtailments at certain facilities utilized by Bellatrix.
In spite of these system constraints, Bellatrix has been able to
maintain production levels in line with guidance through proactive
management of Bellatrix's firm capacity on the Canadian mainline gas
transmission system and utilization of Bellatrix's infrastructure by
providing flexibility to redirect volumes to unaffected plants and
delivery points.

Drilling Activity – Three months
	Three months ended September 30, 2015				Three months ended September 30, 2014
	Gross	Net	Success Rate		Gross	Net	Success Rate
Cardium oil	–	–	–		13	7.1	100%
Spirit River liquids-rich natural gas	12	5.4	100%		13	6.3	100%
Cardium natural gas	–	–	–		9	4.1	100%
Total	12	5.4	100%		35	17.5	100%

Drilling Activity – Nine months
	Nine months ended September 30, 2015			Nine months ended September 30, 2014
	Gross	Net	Success Rate		Gross	Net	Success Rate
Cardium oil	3	1.2	100%		60	34.4	100%
Spirit River liquids-rich natural gas	19	10.2	100%		27	12.4	100%
Cardium natural gas	–	–	–		11	5.2	100%
Total	22	11.4	100%		98	52.0	100%

In the three months ended September 30, 2015, Bellatrix posted a 100%
success rate, drilling and/or participating in 12 gross (5.4 net)
Spirit River liquids-rich gas wells. During the nine months ended
September 30, 2015, Bellatrix drilled and/or participated in 22 gross
(11.4 net) wells, consisting of 3 gross (1.2 net) Cardium light oil
horizontal wells and 19 gross (10.2 net) Spirit River liquids-rich gas
wells. One operated Cardium well drilled in the first nine months of
2015 was included under our Troika JV program and fourteen operated
Spirit River liquids-rich gas wells were drilled under our Grafton JV.
We anticipate directing the majority of our drilling and completion
capital for the remainder of 2015 to our Spirit River opportunities and
plan to continue to lever JV capital.

Capital Expenditures

In the third quarter of 2015, capital spending on exploration and
development activities of $19.6 million, included $2.1 million on
facilities and equipment as the Company focused capital activities on
drilling, completions and tie-ins of wells in the Spirit River play.
During the third quarter Bellatrix sold a working interest in a gas
gathering line in the Ferrier area to a third party midstream company.
Bellatrix will continue to operate the gathering line and deliver gas
to a third party facility.

Capital Expenditures
		Three months ended September 30,		Nine months ended September 30,
($000s)		2015	2014	2015	2014
Lease acquisitions and retention		1,514	7,077	3,581	13,815
Geological and geophysical		20	28	646	1,704
Drilling and completion costs		15,944	75,796	55,829	227,335
Facilities and equipment		2,100	55,644	86,959	179,740
Property transfers – cash		–	–	(8,639)	–
	Capital – exploration and development ⁽¹⁾	19,578	138,545	138,376	422,594
Capital – corporate assets ⁽²⁾		177	1,656	3,288	7,817
Property acquisitions		–	27,589	749	27,571
	Total capital expenditures – cash	19,755	167,790	142,413	457,982
Property dispositions – cash		(8,496)	–	(10,307)	(8,374)
	Total net capital expenditures – cash	11,259	167,790	132,106	449,608
Other – non-cash ⁽³⁾		2,465	3,642	6,019	12,233
Total capital expenditures – net ⁽⁴⁾		13,724	171,432	138,125	461,841

⁽¹⁾	Excludes capitalized costs related to decommissioning liabilities expenditures incurred during the period.
⁽²⁾	Capital – corporate assets includes office leasehold improvements, furniture, fixtures and equipment before recoveries realized from landlord lease inducements.
⁽³⁾	Other – non-cash includes non-cash adjustments for the current period's decommissioning liabilities and share based compensation.
⁽⁴⁾	Total capital expenditures – net is considered to be a non-GAAP measure. Total capital expenditures – net includes the cash impact of capital expenditures and property dispositions, as well as the non-cash capital impacts of corporate acquisitions, property acquisitions, adjustments to the Company's decommissioning liabilities, and share based compensation.

Undeveloped land

At September 30, 2015, Bellatrix had approximately 346,931 undeveloped
acres of land in Alberta, British Columbia, and Saskatchewan.

FINANCIAL REVIEW

Cash Flow from Operating Activities, Funds Flow from Operations, Net Operating Income (Loss) and Net Profit (Loss)
		Three months ended September 30,		Nine months ended September 30,
($000s, except per share amounts)		2015	2014	2015	2014
Funds flow from operations		26,598	60,341	79,833	208,996
	Basic ($/share)	0.14	0.32	0.42	1.16
	Diluted ($/share)	0.14	0.31	0.42	1.14
Cash flow from operating activities		22,015	60,006	61,042	204,369
	Basic ($/share)	0.11	0.31	0.32	1.13
	Diluted ($/share)	0.11	0.31	0.32	1.12
Adjusted net profit (loss) ⁽¹⁾		(12,569)	29,622	(44,657)	99,551
	Basic ($/share)	(0.07)	0.15	(0.23)	0.55
	Diluted ($/share)	(0.07)	0.15	(0.23)	0.54
Net profit (loss)		(50,460)	44,874	(87,577)	108,293
	Basic ($/share)	(0.26)	0.23	(0.46)	0.60
	Diluted ($/share)	(0.26)	0.23	(0.46)	0.59

⁽¹⁾	The terms “funds flow from operations” and “adjusted net profit (loss)” do not have a standardized meaning under GAAP. Refer to “Non-GAAP and other measures” disclosed at the end of this Press Release.

Bellatrix generated funds flow from operations of $26.6 million ($0.14
per basic and diluted share) in the third quarter of 2015, a decrease
of 56% from $60.3 million ($0.32 per basic share and $0.31 per diluted
share) generated in the comparative period in 2014. Bellatrix's cash
flow from operating activities for the three months ended September 30,
2015 decreased by 63% to $22.0 million ($0.11 per basic and diluted
share) from $60.0 million ($0.31 per basic and diluted share) generated
in the third quarter of 2014. For the three months ended September 30,
2015, Bellatrix recognized an adjusted net loss of $12.6 million ($0.07
per basic and diluted share), compared to an adjusted net profit of
$29.6 million ($0.15 per basic and diluted share) in the third quarter
of 2014. The overall weak global commodity price environment has
continued through the third quarter 2015 significantly impacting funds
flow from operations and adjusted net profit of the Company.

Adjusted Net Profit (Loss)
		Three months ended September 30,		Nine months ended September 30,
($000s)		2015	2014	2015	2014
Net profit (loss)		(50,460)	44,874	(87,577)	108,293
Add (deduct) non-operating items:
	Unrealized (gain) loss on commodity contracts	(7,031)	(20,336)	(6,420)	(11,656)
	Unrealized (gain) loss on foreign exchange	21,524	–	27,803	–
	Impairment	37,412	–	37,412	–
	Tax impact on non-operating items	(14,014)	5,084	(15,875)	2,914
Adjusted net profit (loss)		(12,569)	29,622	(44,657)	99,551

Management believes that, in addition to net profit (loss), adjusted net
profit (loss) is a useful supplemental measure as it reflects the
underlying performance of Bellatrix's business activities by excluding
the after tax effect of non-cash commodity contracts mark-to-market
gains and losses, unrealized foreign exchange gains and losses, and
non-cash one time charges, as applicable, that may significantly impact
net profit (loss) from period to period.

Operating Netback – Corporate (before risk management)
	Three months ended September 30,		Nine months ended September 30,
($/boe)	2015	2014	2015	2014
Sales ⁽¹⁾	22.15	39.47	22.95	45.59
Production	(7.38)	(8.85)	(8.18)	(8.27)
Transportation	(1.34)	(1.25)	(1.27)	(1.22)
Royalties	(1.71)	(7.00)	(2.66)	(7.92)
Operating netback	11.72	22.37	10.84	28.18

⁽¹⁾	Sales includes other income.

Bellatrix's corporate operating netback before commodity price risk
management contracts for crude oil and natural gas during the three
months ended September 30, 2015 averaged $11.72/boe, a decrease of 48%
from $22.37/boe realized during the third quarter of 2014. After
including commodity risk management contracts, the corporate operating
netback for the three months ended September 30, 2015 was $11.58/boe,
compared to $20.47/boe in the third quarter of 2014. Per unit metrics
including risk management include realized gains or losses on commodity
contracts and exclude unrealized gains or losses on commodity
contracts.

Total revenue decreased by 40% to $82.1 million for the three months
ended September 30, 2015, compared to $137.4 million realized in the
third quarter of 2014. Total crude oil, condensate, and NGL revenues
comprised 36% of total third quarter 2015 revenue before other income,
royalties, and commodity price risk management contracts, compared to
52% in the three months ended September 30, 2014.

Production expenses totaled $27.4 million ($7.38/boe) for the three
months ended September 30, 2015, compared to $30.8 million ($8.85/boe)
in the third quarter of 2014. Production expenses totaled $93.2 million
($8.18/boe) for the nine months ended September 30, 2015, compared to
$82.2 million ($8.27/boe) in the first nine months of 2014. A further
reduction is realized between the nine months ended September 30, 2015
and September 30, 2014 as adjustments related to prior periods of
$0.33/boe primarily attributable to third party realized facility
equalizations were recognized. Excluding these adjustments, production
expenses per boe for the nine months ended September 30, 2015 were
$7.85/boe. The decrease in production expenses between the three and
nine month periods of 2014 and 2015 was primarily attributable to cost
reductions realized from the operation of the Alder Flats Plant and
continued field optimization work. Production expenses are in line to
achieve our $8.25/boe guidance in 2015.

For the three months ended September 30, 2015, royalties incurred
totaled $6.3 million, compared to $24.4 million incurred in the third
quarter of 2014. Overall royalties as a percentage of revenue (after
transportation costs) in the third quarter of 2015 were 9% compared
with 19% in the comparative period in 2014. For the nine months ended
September 30, 2015, royalties incurred totaled $30.2 million, compared
to $78.8 million incurred in same period in 2014. Overall royalties as
a percentage of revenue (after transportation costs) in the nine months
ended September 30, 2015, were 13% compared with 18% in the same period
of 2014. Lower average corporate royalty rates period over period
include the impact from lower commodity prices as well as increased GCA
credits associated with significant infrastructure and facilities
investments by Bellatrix.

Commodity Prices

Average Commodity Prices
			Three months ended September 30,			Nine months ended September 30,
			2015	2014	% Change	2015	2014	% Change

Exchange rate (CDN$/US$1.00)			1.3086	1.0887	20	1.2582	1.0943	15

Crude oil:
	WTI (US$/bbl)		46.50	97.25	(52)	51.01	99.62	(49)
	Canadian Light crude blend ($/bbl)		55.10	97.71	(44)	59.09	100.53	(41)
Bellatrix's average prices ($/bbl)
		Crude oil and condensate	51.59	90.39	(43)	55.94	97.70	(43)
		NGLs (excluding condensate)	11.03	43.20	(74)	14.59	47.43	(69)
		Total crude oil and NGLs	25.57	65.78	(61)	31.92	73.77	(57)
		Crude oil and condensate (including risk management⁽¹⁾)	54.00	81.36	(34)	57.14	86.76	(34)

Natural gas:
	NYMEX (US$/mmbtu)		2.73	3.95	(31)	2.76	4.41	(37)
	AECO daily index (CDN$/mcf)		2.90	4.02	(28)	2.77	4.81	(42)
	AECO monthly index (CDN$/mcf)		2.80	4.22	(34)	2.80	4.55	(38)
		Bellatrix's average price ($/mcf)	3.24	4.44	(27)	3.04	5.08	(40)
		Bellatrix's average price (including risk management ⁽¹⁾) ($/mcf)	3.04	4.30	(29)	3.00	4.51	(33)

⁽¹⁾	Per unit metrics including risk management include realized gains or losses on commodity contracts and exclude unrealized gains or losses on commodity contracts.

The overall weak global commodity price environment has continued
through the first nine months of 2015 as oil production from OPEC and
non-OPEC countries continued to climb, reaching approximately 96
million barrels per day in September 2015 and combined with weaker
expectations of global demand growth. The relative weakness in the
Canadian dollar compared to the US dollar and a slight narrowing of the
WTI/Edmonton Par differential should serve to slightly offset the
impact of lower crude oil prices. Shale production in the US and Canada
has pushed US oil inventories to record levels despite increased
refinery utilizations. Likewise, production of natural gas in North
America has reached record levels and has more than offset relatively
strong power demand in the US and an increase in Mexican exports of
natural gas resulting in storage levels in Canada and the US to be at
near capacity at the end of the injection season.

For crude oil and condensate, Bellatrix realized an average price of
$51.59/bbl before commodity price risk management contracts during the
three months ended September 30, 2015, a decrease of 43% from the
average price of $90.39/bbl received in the third quarter of 2014. In
comparison, the Canadian Light price decreased by 44% and the average
WTI crude oil benchmark price decreased by 52% between the third
quarters of 2014 and 2015.

Bellatrix's average realized price for NGLs (excluding condensate)
decreased by 74% to $11.03/bbl during the third quarter of 2015,
compared to $43.20/bbl received in the three months ended September 30,
2014. NGL pricing in Western Canada continues to remain challenged as
butane was down 17% and propane remained weak quarter over quarter.
Butane pricing has been impacted by higher product supply from key US
natural gas plays impacting the overall supply/demand balance. Propane
pricing has also been impacted by supply/demand balance and logistic
issues in Western Canada to major demand markets. Propane inventories
remain at record levels across North America. Canadian inventories are
building mainly due to the 2014 reversal of the Cochin NGL line that
was a primary outlet for propane from Western Canada to eastern
markets. Over the past several months, realized propane prices have
slightly increased as the expected seasonal demand has risen in major
demand markets. Bellatrix's average realized price for NGLs (excluding
condensate) decreased by 69% to $14.59/bbl during the nine months ended
September 30, 2015, compared to $47.43/bbl received in the first nine
months of 2014.

Bellatrix's natural gas sales are priced with reference to the daily or
monthly AECO indices. Bellatrix's natural gas sold has a higher heat
content than the industry average, which results in slightly higher
realized prices per mcf than the daily AECO index. During the three
months ended September 30, 2015, the AECO daily reference price
decreased by 28% and the AECO monthly reference price decreased by 34%
compared to the third quarter of 2014. Bellatrix's natural gas average
sales price before commodity price risk management contracts for the
three months ended September 30, 2015 decreased by 27% to $3.24/mcf
compared to $4.44/mcf in the third quarter of 2014.

As at September 30, 2015, Bellatrix was party to a series of commodity
price risk management contracts for 2015 summarized below:


								Q4 2015
Natural gas volumes (MMcf/d)								85.9
Average price ($/mcf)⁽¹⁾								$2.94

Oil volumes (bbl/d)								3,000
Average fixed price ($/bbl)⁽²⁾								$70.34

⁽¹⁾	The conversion of $/GJ to $/mcf is based on an average corporate heat content rate of 40.8Mj/m3.
⁽²⁾	Oil hedges are Canadian dollar WTI equivalent.

Bellatrix entered into the following contracts for the 2016 and 2017
calendar years as summarized below:

Product

Financial Contract

Period

Volume

Average Price⁽¹⁾

Natural gas

Fixed price swap

January 1, 2016 to December 31, 2017

44 MMcf/d

$3.38/mcf

Natural gas

AECO basis swap

January 1, 2016 to December 31, 2016

45 MMcf/d

US$0.75/mcf

Natural gas

AECO basis swap

January 1, 2017 to December 31, 2017

45 MMcf/d

US$0.75/mcf

Crude oil

Edmonton sweet differential

January 1, 2016 to September 30, 2016

2,000 bbl/d

US$4.05/bbl

Crude oil

Edmonton sweet differential

October 1, 2016 to December 31, 2016

1,500 bbl/d

US$4.05/bbl

⁽¹⁾	The conversion of $/GJ to $/mcf is based on an average corporate heat content rate of 40.0Mj/m3 in 2016 & 2017.

Additionally, Bellatrix entered into USD foreign exchange forward
contracts for US$62.5 million with a value date of May 2020, at $1.3078
USD/CAD.

Long Term Debt

Senior Notes

Bellatrix successfully completed a private offering of US$250 million of
8.50% senior unsecured notes due 2020 (the “Senior Notes”) during the
second quarter 2015. The Company used the net proceeds from the
offering to partially repay borrowings outstanding under its credit
facility. Interest on the Senior Notes is payable semi-annually and the
Senior Notes are redeemable at the Company's option, in whole or in
part, commencing on May 15, 2017 at specified redemption prices.

Bank Debt

Bellatrix maintains extendible revolving reserves-based credit
facilities with a syndicate of lenders that mature May 2017. The
semi-annual review of the borrowing base under the Company's revolving
credit facilities was approved at $600 million in June 2015. The
available credit facilities and related borrowing base are subject to
semi-annual reviews in May and November of each year. The credit
facilities do not require any mandatory principal payments prior to
maturity and can be further extended beyond May 2017 with the consent
of the lenders. As of September 30, 2015, the Company's credit
facilities are available on an extendible revolving term basis and
consist of a $75 million operating facility provided by a Canadian bank
and a $525 million syndicated facility provided by nine financial
institutions, subject to a borrowing base test.

The Company's liquidity position remains strong with $259 million of
undrawn capacity (excluding letters of credit) on the Company's $600
million bank credit facility at September 30, 2015. Bellatrix reduced
its outstanding bank debt and working capital deficiency by
approximately $15 million at September 30, 2015 relative to June 30,
2015.

Effective August 4, 2015, the Company's banking syndicate agreed to
amend the agreement governing the credit facilities to remove the Total
Debt to EBITDA and EBITDA to interest expense financial covenants. At
the same time, Bellatrix and the banking syndicate agreed to modify the
Senior Debt to EBITDA financial covenant so that it must not exceed 3.5
times for the fiscal quarters ending on or before March 31, 2017.

Commencing with the second quarter of 2017, the maximum Senior Debt to
EBITDA covenant will return to 3.0 times (3.5 times for the two fiscal
quarters immediately following a material acquisition). All other
aspects of the facilities including the borrowing base and the next
redetermination on November 30, 2015 remain unchanged.

Notes:

⁽¹⁾ “Total Debt” is defined as the sum of the bank loan, the principal
amount of long-term debt and certain other liabilities defined in the
agreement governing the credit facilities.

⁽²⁾ “EBITDA” refers to earnings before interest, taxes, depreciation and
amortization. EBITDA is calculated based on terms and definitions set
out in the agreement governing the credit facilities, which adjusts net
income for financing costs, certain specific unrealized and non-cash
transactions, acquisition and disposition activity and is calculated
based on a trailing twelve month basis.

⁽³⁾ “Senior Debt” is defined as Total Debt, excluding any unsecured or
subordinated debt. The US$250 million notes are classified as unsecured
debt.

CONFERENCE CALL INFORMATION

A conference call to discuss Bellatrix's third quarter results will be
held on November 5, 2015 at 10:00 am MT / 12:00 pm ET. To participate,
please call toll-free 1-888-231-8191 or 647-427-7450. The conference
call will also be recorded and available until November 12, 2015 by
calling 1-855-859-2056 or 403-451-9481 and entering passcode 63012692
followed by the pound sign.

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 of Bellatrix trade on the Toronto Stock Exchange and on
the New York Stock Exchange under the symbol “BXE”.

NON-GAAP and other measures

This press release contains the term “funds flow from operations” which
should not be considered an alternative to, or more meaningful than,
cash flow from operating activities as determined in accordance with
GAAP as an indicator of the Company's performance. Therefore reference
to the additional GAAP measures of funds flow from operations, or funds
flow from operations per share may not be comparable with the
calculation of similar measures for other entities. Management uses
funds flow from operations to analyze operating performance and
leverage and considers funds flow from operations to be a key measure
as it demonstrates the Company's ability to generate the cash necessary
to fund future capital investments and to repay debt. The
reconciliation between cash flow from operating activities and funds
flow from operations can be found in the MD&A. Funds flow from
operations per share is calculated using the weighted average number of
common shares for the period.

“Total net debt” and “adjusted working capital deficiency (excess)” are
considered to be additional GAAP measures. Therefore reference to the
additional GAAP measures of total net debt or adjusted working capital
deficiency (excess) may not be comparable with the calculation of
similar measures for other entities. The Company's calculation of
total net debt excludes deferred lease inducements, decommissioning
liabilities, the long-term finance lease obligation, and the deferred
tax liability. Total net debt includes the adjusted working capital
deficiency (excess). The adjusted working capital deficiency (excess)
is an additional GAAP measure calculated as net working capital
deficiency (excess) excluding short-term commodity contract assets and
liabilities, current finance lease obligation, and current deferred
lease inducements. Management believes these measures are useful
supplementary measures of the total amount of current and long-term
debt. A reconciliation between total liabilities under GAAP and total
net debt as calculated by the Company is found in the MD&A.

“Total revenue” is considered to be a non-GAAP measure. Therefore
reference to the non-GAAP measure of total revenue may not be
comparable with the calculation of similar measures for other
entities. The Company's calculation of total revenue includes
petroleum and natural gas sales and other income, and excludes
commodity price risk management.

“Operating netbacks”, “adjusted net profit (loss)”, and “total capital
expenditures – net” are considered to be non-GAAP measures. Operating
netbacks are calculated by subtracting royalties, transportation, and
operating costs from total revenue. Adjusted net profit (loss) is
calculated by removing unrealized gains and losses on commodity
contracts, net of associated tax impacts, unrealized gains and losses
on foreign exchange, and non-cash one time charges, net of associated
tax impacts, from net profit (loss). Total capital expenditures – net
includes the cash impact of capital expenditures and property
dispositions, as well as the non-cash capital impacts of corporate
acquisitions, adjustments to the Company's decommissioning liabilities,
and share based compensation. The detailed calculations of operating
netbacks are found in the MD&A.

These measures have been described and presented in this news release in
order to provide shareholders and potential investors with additional
information regarding Bellatrix's liquidity and its ability to generate
funds to finance its operations.

FORWARD LOOKING STATEMENTS

Certain information contained herein may contain forward looking
statements including management's assessment of future plans,
operations and strategy, including the Company's liquidity position and
available undrawn capacity on the Company's $600 million bank credit
facility, the capital efficiencies in the Company's Spirit River play
and the impact of the use of promoted JV capital, the Company's ability
to mitigate adverse impacts from third party plant and pipeline
restrictions, the Company's estimate of future Spirit River formation
drilling locations, the intent of the Company to focus capital activity
for the remainder of 2015 on the Spirit River play, the impacts of the
Alder Flats Plant on the Company's operating costs, competitiveness and
long term profitability, the Company's future average expected
corporate royalty rates, the expectation that general and
administrative costs will decline year over year, the Company's ability
to grow 2015 full year average volumes by approximately 9% relative to
2014, the Company's ability to manage infrastructure constrains by
redirecting volumes to unaffected plants and delivery points along the
Canadian mainline gas transmission system and thereby mitigating the
impacts of system constraints, the Company's ability to respond to a
commodity price recovery and to grow volumes under existing and future
firm service arrangements, the Company's forecast for operating costs
to average in the mid $7.50/boe range through 2016, the Company's
ability to use commodity price hedging to provide greater assurance of
future revenue and cash flow, estimated fourth quarter capital
expenditures of approximately $20 million, the Company's ability to
reduce bank debt through year end while maintaining average production
volumes in the fourth quarter similar to third quarter levels, that
industry natural gas volume growth will remain constrained for several
years until additional takeaway capacity is constructed and expanded,
the Company's ability to grow corporate volumes over the near to long
term, the impact of the Alder Flats Plant on operating costs, the
Company's focus on debt reduction initiatives, including spending under
forecast cash flow while maintaining total Company production volumes,
and the Company's ability to maintain balance sheet flexibility and
manage effectively through the commodity price cycle, may constitute
forward-looking statements under applicable securities laws. To the
extent that any forward-looking information contained herein constitute
a financial outlook, they were approved by management on November 4,
2015 and are included herein to provide readers with an understanding
of the anticipated funds available to Bellatrix to fund its operations
and readers are cautioned that the information may not be appropriate
for other purposes. Forward-looking statements necessarily involve risks, including, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, competition from
other producers, inability to retain drilling rigs and other services,
incorrect assessment of the value of acquisitions, failure to realize
the anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources. Events or
circumstances may cause actual results to differ materially from those
predicted, as a result of the risk factors set out and other known and
unknown risks, uncertainties, and other factors, many of which are
beyond the control of Bellatrix. In addition, forward-looking
statements or information are based on a number of factors and
assumptions which have been used to develop such statements and
information but which may prove to be incorrect and which have been
used to develop such statements and information in order to provide
shareholders with a more complete perspective on Bellatrix's future
operations. Such information may prove to be incorrect and readers are
cautioned that the information may not be appropriate for other
purposes. Although the Company believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking
statements because the Company can give no assurance that such
expectations will prove to be correct. In addition to other factors
and assumptions which may be identified herein, assumptions have been
made regarding, among other things: the impact of increasing
competition; the general stability of the economic and political
environment in which the Company operates; the timely receipt of any
required regulatory approvals; the ability of the Company to obtain
qualified staff, equipment and services in a timely and cost efficient
manner; drilling results; the ability of the operator of the projects
which the Company has an interest in to operate the field in a safe,
efficient and effective manner; the ability of the Company to obtain
financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas reserves
through acquisition, development or exploration; the timing and costs
of pipeline, storage and facility construction and expansion and the
ability of the Company to secure adequate product transportation;
future commodity prices; currency, exchange and interest rates; the
regulatory framework regarding royalties, taxes and environmental
matters in the jurisdictions in which the Company operates; and the
ability of the Company to successfully market its oil and natural gas
products. Readers are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which have been used. As a
consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Additional information
on these and other factors that could affect Bellatrix's operations and
financial results are included in reports on file with Canadian and US
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com), through the SEC website (www.sec.gov, and at Bellatrix's website www.bellatrixexploration.com). Furthermore, the forward-looking statements contained herein are
made as at the date hereof 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 required by applicable
securities laws.

UNBOOKED DRILLING LOCATIONS

Unbooked locations as disclosed herein have been identified by
management as an estimation of the Company's multi-year drilling
activities using information including applicable geologic, seismic,
engineering, production, pricing assumptions and reserves information.
There is no certainty that Bellatrix will drill all unbooked drilling
locations and if drilled there is no certainty that such locations will
result in additional oil and gas reserves, resources or production. The
drilling locations on which Bellatrix actually drill wells will
ultimately depend upon the availability of capital, regulatory
approvals, seasonal restrictions, oil and natural gas prices, costs,
actual drilling results, additional reservoir information that is
obtained and other factors. While the majority of Bellatrix's unbooked
locations are extensions or infills of the drilling patterns already
recognized by the Company's independent qualified reserves evaluator,
other unbooked drilling locations are farther away from existing wells
where management may have less information about the characteristics of
the reservoir and therefore there may be more uncertainty whether wells
will be drilled in such locations and if drilled there may be more
uncertainty that such wells will result in additional oil and gas
reserves, resources or production.

BARRELS OF OIL EQUIVALENT

The term barrels of oil equivalent (“boe”) may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet of natural gas to one barrel of oil equivalent (6
mcf/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. All boe conversions in this press release are derived
from converting gas to oil in the ratio of six thousand cubic feet of
gas to one barrel of oil. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly
different from the energy equivalency of 6:1, utilizing a conversion on
a 6:1 basis may be misleading as an indication of value.

RESERVES INFORMATION

Unless indicated otherwise, reserve estimates and related future net
revenue and other reserves information is derived from Bellatrix's
independent reserve report prepared by Sproule Associates Limited as at
December 31, 2014 using forecast prices and costs (the “Sproule
Report”).

TYPE CURVE AND CAPITAL EFFICIENCY

In this press release information relating to the type curve and capital
efficiency for Bellatrix's Spirit River wells have been presented. The
type curve set forth herein is generated from March 2011 – June 2014,
Bellatrix operated, Notikewin and Falher B wells and represents the
mean (P50) performance curve. Full cycle economics are based on
Bellatrix's current expectations of facilities, land, seismic and
related costs per well. Capital efficiency is a measure of expected
capital expenditures per well divided by average first year production
results (IP365) based on the type curve presented. The type curve and
capital efficiency numbers have been presented to provide readers with
information on the assumptions used for management's budgeting process
and future planning. The full cycle economics may not be achieved on
future wells as a result of a number of factors including the risks
identified above under “Forward Looking Statements”. In addition, there
is no certainty that future wells will generate results to match
historic type curves presented herein.

SOURCE Bellatrix Exploration Ltd.

PDF available at: http://stream1.newswire.ca/media/2015/11/05/20151105_C9163_DOC_EN_44387.pdf

Bellatrix Exploration Ltd. Announces Third Quarter 2015 Financial Results

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