TSX, NYSE: BXE
CALGARY, May 26, 2015 /CNW/ - Bellatrix
Exploration Ltd. ("Bellatrix" or the "Company") (TSX, NYSE: BXE) is
pleased to announce it has successfully completed construction and
has begun commissioning of Phase 1 of the Bellatrix O'Chiese
Nees-Ohpawganu'ck deep cut gas plant in the Alder Flats area of Alberta (the "Bellatrix Alder Flats Plant" or
the "Plant"). Phase 1 of the Plant was constructed with
design capacity of 110 mmcf/d, and was completed ahead of schedule
and within approximately 3% of cost estimates.
Commissioning of the Bellatrix Alder Flats Plant is currently
underway, which involves operational and functional unit testing,
pressure testing and purging, initial Plant start up, and
performance testing. Mechanical, instrument, and electrical
pre-commissioning work is complete. Final pressure testing
and purging of the Plant is also complete. Initial Plant
start up commenced on May 22, 2015
with subsequent first delivery of natural gas volumes to
sales. Bellatrix anticipates increasing volume throughput at
the Plant and completion of the commissioning process through the
month of June.
Bellatrix has secured firm takeaway capacity of its natural gas
volumes from the Plant through the main gas transmission system in
Alberta and has entered into firm
transportation and fractionation agreements with an established
midstream company providing for takeaway, processing and marketing
of all NGL and condensate products produced at the Plant.
Bellatrix's firm service takeaway capacity on the main gas
transmission system will grow from approximately 220 mmcf/d in the
first quarter of 2015 to 330 mmcf/d upon final start-up of Phase 1
of the Plant. This incremental firm takeaway capacity
provides Bellatrix with unfettered processing capability to grow
company volumes to approximately 60,000 boe/d without material
capital spending on infrastructure over the near term.
Completion of the Bellatrix Alder Flats Plant is a significant
milestone for Bellatrix because it is expected to provide improved
operational control and enhanced reliability of processing.
Bellatrix intends to deliver natural gas volumes to the Plant
sourced from both behind pipe volumes that are currently
constrained from area processing within the greater Ferrier region,
and from operated natural gas volumes currently processed through
third party facilities. Bellatrix expects the enhanced
natural gas liquids recovery capabilities of the Plant will provide
an approximately 14% uplift in revenue from the same gas stream
currently processed through third party plants.
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.
FORWARD LOOKING STATEMENTS:
This press release contains forward looking
statements. More particularly, this press release contains
statements concerning the completion of construction and
commissioning of the Bellatrix Alder Flats Plant, the anticipating
timing of completion of commissioning of the Plant, the anticipated
start-up of the Plant, and the anticipated benefits of the Plant to
Bellatrix in respect of its processing capacity, growth potential,
operational reliability, processing reliability, liquids recovery
and increased revenue potential. 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.
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.
SOURCE Bellatrix Exploration Ltd.