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shotskion Feb 17, 2011 8:43am
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BELLATRIX EXPLORATION REPORTS RESOURCE DRILLING DR
BELLATRIX EXPLORATION REPORTS RESOURCE DRILLING DRolny part of the release
BELLATRIX EXPLORATION REPORTS RESOURCE DRILLING DRIVES 65% GROWTH IN YEAR-END RESERVES
BELLATRIX EXPLORATION REPORTS RESOURCE DRILLING DRIVES 65% GROWTH IN YEAR-END RESERVES
Canada NewsWire
CALGARY, Feb. 17
TSX: BXE
CALGARY, Feb. 17 /CNW/ - Bellatrix Exploration Ltd. ("Bellatrix" or the "Company") announces the results of its 2010 year-end reserves as evaluated by GLJ Petroleum Consultants Ltd. ("GLJ"), the independent reserves evaluator, for 100% of Bellatrix's oil and gas properties prepared in accordance with National Instrument 51-101 ("NI 51-101").
As Bellatrix plans to announce its audited 2010 financial results on or about March 10, 2011, certain financial information for the year ended December 31, 2010 disclosed herein, or used in various calculations herein, is based on unaudited information and has been utilized by Bellatrix in this release to facilitate the discussion with respect to the performance of our capital program. Readers are advised that these financial estimates are subject to audit and may be subject to change as a result, and such changes could be material.
The highlights section contains the term "funds flow from operations" which should not be considered an alternative to, or more meaningful than cash flow from operating activities as determined in accordance with Canadian generally accepted accounting principles ("GAAP") as an indicator of the Company's performance. Therefore reference to diluted funds flow from operations or funds flow from operations per share may not be comparable with the calculation of similar measures for other entities. Management uses funds flow from operations to analyze operating performance and leverage and considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and to repay debt. The reconciliation between cash flow from operating activities and funds flow from operations can be found in the document. Funds flow from operations per share is calculated using the weighted average number of common shares for the period.
HIGHLIGHTS
- 2010 sales volumes averaged 8,519 boe/d with an exit rate of 10,500 boe/d (weighted 42% to crude oil, condensate and NGLs).
- Q4 2010 sales volumes averaged 10,002 boe/d up 52% from Q4 2009. For the week of February 5 to February 11, 2011 field production averaged 11,220 boe/d (weighted 43% to crude oil, condensate and NGLs).
- As of December 31, 2010, the Company posted total company interest proved reserves of 24.93 mmboe and total company interest proved plus probable reserves of 42.56 mmboe representing a 64.5% growth year over year.
- Excluding properties which were disposed in 2010, proved and probable company interest reserve additions in 2010 replaced 590% of production.
- The net present value of future net revenue of reserves at 10% discount rate improved to $481.54 million up from $357.34 million posted in 2009 representing an increase of 34.8%.
- Bellatrix's net asset value, as at December 31, 2010, based on the GLJ evaluation at a 10% discount rate, equates to $5.11 per basic share outstanding and is $5.79 per basic share outstanding at an 8% discount rate.
- The Company's reserve life index has extended to 7.2 years for total company interest proved reserves up from 6.4 years in 2009 with total company interest proved and probable reserve life index increased to 11.2 years up from 9.4 years presented in 2009.
- 2010 FD&A including changes to future development capital for proved reserves equated to $15.94 /boe.
- 2010 FD&A including changes to future development capital for total proved plus probable reserves were $12.89 /boe.
- The Company established recycle ratios, after commodity price risk management contracts and excluding future development costs of 2.52 times on a proved basis and 4.31 times on a proved and probable basis.
- Funds flow from operations increased to $53.0 million (
.57/share) in 2010 up from $36.0 million (
.46/share) posted in 2009. - The Company's total debt including the liability component of its convertible debentures, excluding unrealized commodity contract assets and liabilities, future income taxes, asset retirement obligations and capital lease obligations, as at December 31, 2010 was $87.4 million, down from $107.3 million at the year ending 2009.