Bellatrix Exploration Ltd. provides an operational update and announces the renewal and extension of its revolving credit facilities.

Bellatrix completed its first half 2018 development drilling program in February, bringing 5 gross (5.0 net) operated Spirit River wells on-stream during the first quarter. These wells continue to outperform expected results by approximately 35% on an IP60 basis, further demonstrating the high quality nature of Bellatrix’s asset base.

Bellatrix’s infrastructure control, takeaway capacity, and market egress allow the Company to proactively manage production volumes during periods of commodity price volatility in order to optimize funds flow. To that end, Bellatrix has curtailed production volumes of approximately 12 MMcfe/d to 24 MMcfe/d (2,000 to 4,000 boe/d) during periods of the second quarter to proactively manage the impact of weak daily AECO natural gas prices.  Bellatrix maintains ample takeaway capacity and egress to produce curtailed volumes when daily natural gas prices are higher.

Based on field estimates and current second quarter production management plans, Bellatrix anticipates second quarter average production volumes to meet its annual average guidance range of 34,000 to 35,000 boe/d, despite the impact from the previously mentioned production curtailments.  The Company plans to maintain a flexible capital program in the second half of 2018 focused on optimizing forecast return on invested capital through focused development of the Spirit River liquids rich natural gas play and higher liquids weighted opportunities in the Cardium play.  Bellatrix anticipates the resumption of drilling activity in mid-July. 

The Phase 2 expansion of the Bellatrix O’Chiese Nees-Ohpawganu’ck deep-cut gas plant at Alder Flats (the “Alder Flats Plant”) began selling volumes March 19, 2018, and continues to perform in-line with expectations.  The turbo expander is operational on Phase 2, which was designed with a colder process, thereby enhancing natural gas liquid (“NGL”) extraction capabilities.  Total combined corporate condensate and NGL yields increased during the month of April compared with the first quarter of 2018, owing to the redirection of natural gas volumes from less efficient third-party plants into the deeper cut process at the Bellatrix Alder Flats Plant.  

Bellatrix recently completed the renewal and extension of its syndicated revolving credit facilities and the semi-annual redetermination of the borrowing base thereunder.  The term of the Credit Facilities has been renewed and extended for an additional year, to May 30, 2019, and remains extendible annually thereafter at the option of the Company, subject to lender approval. If not renewed in May 2019, the Credit Facilities would enter a six-month term-out period. As part of the renewal of the Credit Facilities, the borrowing base under the Credit Facilities has been confirmed at $100 million (previously $120 million), comprised of a $25 million operating facility and a $75 million syndicated facility (previously $95 million). The next semi-annual redetermination is scheduled for November 2018.  Other than approximately $57 million outstanding under the Credit Facilities as at March 31, 2018, the Company has no debt maturities until 2020, providing the Company with approximately $43 million of available liquidity, before deducting outstanding letters of credit.