Bellatrix Announces Closing of $80 Million Non-Core Asset Sale

Bellatrix Announces Closing of $80 Million Non-Core Asset Sale

Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE: BXE) is pleased to announce that it has completed the previously announced sale of certain non-core assets in the greater Harmattan area of Alberta (the “Harmattan asset sale”).  Pursuant to the Harmattan asset sale, the Company received net cash proceeds of approximately $65 million, and made a $15 million vendor take back loan (“VTB Loan”) to the purchaser. The VTB Loan bears interest at 10% per annum and is secured by a first lien charge against the assets sold.  The terms of the VTB Loan also provide that a minimum of 50% of the net operating income from the assets sold will be earmarked for principal repayment on a quarterly basis, together with accrued interest. The VTB Loan has a 2 year maturity date, and no prepayment penalties. The net cash proceeds from the Harmattan asset sale were used to reduce the Company’s outstanding bank debt.

Concurrent with the closing of the Harmattan asset sale, the borrowing base under the Company’s syndicated revolving credit facilities (the “Credit Facilities”) was redetermined at $100 million, providing the Company with approximately $70 million of available liquidity post-closing (before deducting outstanding letters of credit). Other than the estimated $30 million Credit Facilities balance as at December 31, 2016, the Company has no debt maturities until 2020 and 2021.

Closing of the Harmattan asset sale represents another significant milestone for Bellatrix in 2016. Bellatrix is well positioned to replace the production, cash flow, and reserves associated with the Harmattan asset sale from continued development of its low cost Spirit River play, which is supported by strategic infrastructure ownership and operatorship. Bellatrix plans to release its 2017 capital budget and guidance in January 2017, with a continued emphasis on profitable and sustainable per share growth, and proactive capital resource management.

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.

SOURCE:  http://investors.bellatrixexploration.com/2016-12-21-Bellatrix-Announces-Closing-of-80-Million-Non-Core-Asset-Sale

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