Bellatrix Exploration Ltd (Canada) BXEFF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Debt Retirement - US $10M vs 7,081,837 Shares

[Eagle1]

ceremony, although your argument is rationale I'm not so sure it's the right one. I can't zero in on a better one but some do come to mind including a special case of back scratching or maybe just testing for a reaction. I say this because US$10m is such a small percentage of the total debt that it just doesn't make sense as a strategy. Had it been a more significant transaction, say US$50m, it would be easier (for me) to understand.

My thinking is that it's too early for management to view this transaction as part of a debt reduction strategy for the following reasons. Oil prices are drift upward and BXE has some, (apparently) good sites. They should make money at these prices so will they start drilling? They have four years before the debt is due, how much can they bank by then? How much growth potential do they have in the four years? Alternatively, are these sites more saleable?

I would expect management must have plans and concepts that match future incremental oil price increases. Hopefully, we'll get some explanations and some ideas on their plans going forward on Wednesday morning. Just my thoughts.