Bellatrix Announces $47 Million Non-Core Asset Sale

Bellatrix Announces $47 Million Non-Core Asset Sale

Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE: BXE) is pleased to announce that it has entered into an agreement with InPlay Oil Corp. (“InPlay”) to sell certain non-core Cardium focused assets in the greater Pembina area of Alberta (the “Pembina asset sale”) for total consideration of $47 million.  Total consideration is comprised of $42 million cash, and 16,666,666 shares of InPlay with a deemed value of$5 million ($0.30 per share).  InPlay is currently a private exploration and production company, but concurrently with the announcement of the Pembina asset sale, it has announced a proposed reverse takeover transaction which among other things, would provide for a public listing for its shares on the Toronto Stock Exchange.

The Pembina asset sale consists of Cardium oil weighted production of approximately 930 boe/d and formation rights in the Cardium only.  As part of the transaction, Bellatrix has retained formation rights above and below the Cardium on the Pembina acreage, including the Notikewin, Falher and Wilrich members of the Spirit River formation.  Cash proceeds from the Pembina asset sale are expected to be used to repay existing bank indebtedness, including repayment in full of the remaining $12.9 million balance outstanding on the Company’s non-revolving term facility, and a reduction of the amount outstanding under the Company’s syndicated revolving facility.  Bellatrix estimates that its current outstanding bank indebtedness, including the assumed application of net proceeds from the Pembina asset sale, to be approximately $78 million, representing a reduction of approximately $236 million from June 30, 2016.


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