CALGARY, Alberta, Oct. 04, 2018 (GLOBE NEWSWIRE) — Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE: BXE) announces that it has entered into an agreement to acquire all the remaining assets earned by Grafton Energy Co I Ltd. (“Grafton”) under the previously announced joint venture arrangement entered into in 2013 (the “Grafton JV”). Upon completion of the transaction, the agreement governing the Grafton JV will be terminated and each party will release the other from all existing and future claims and obligations thereunder.
The acquired assets are located in Bellatrix’s core Ferrier area of west central Alberta and include approximately 2,200 boe/d (79% natural gas, 21% liquids) of low decline production, 44 gross (20.4 net) wells, and 9,920 gross (4,810 net) acres of land. Bellatrix previously acquired a portion of the Grafton JV assets in June 2016. The transaction is consistent with Bellatrix’s strategy to consolidate operated production and acreage within its core area.
Total consideration payable to Grafton of approximately $13 million includes $7.66 million in cash and 4.0 million common shares of Bellatrix. The transaction has an effective date of August 1, 2018, is expected close early in the fourth quarter of 2018, and is subject to approval by Grafton’s lender and its shareholders. Bellatrix expects to file a prospectus supplement under its existing $500 million base shelf prospectus to qualify the issuance of the common shares to Grafton.
Bellatrix Exploration Ltd. is a publicly traded 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, with highly concentrated operations in west central Alberta, principally focused on profitable development of the Spirit River liquids rich natural gas play.