N / R - FYI
Bellatrix to buy back Grafton JV assets
2018-10-04 07:57 ET - News Release
Mr. Steve Toth reports
BELLATRIX ANNOUNCES REPURCHASE OF GRAFTON JOINT VENTURE ASSETS
Bellatrix Exploration Ltd. has entered into an agreement to acquire all the remaining assets earned by Grafton Energy Co. I Ltd. under the previously announced joint venture arrangement entered into in 2013. Upon completion of the transaction, the agreement governing the Grafton JV will be terminated and each party will release the other from all existing and future claims and obligations thereunder.
Transaction highlights
The acquired assets are located in Bellatrix's core Ferrier area of west-central Alberta and include approximately 2,200 barrels of oil equivalent per day (79 per cent natural gas, 21 per cent liquids) of low decline production, 44 gross (20.4 net) wells and 9,920 gross (4,810 net) acres of land. Bellatrix previously acquired a portion of the Grafton JV assets in June, 2016. The transaction is consistent with Bellatrix's strategy to consolidate operated production and acreage within its core area.
Total consideration payable to Grafton of approximately $13-million includes $7.66-million in cash and 4.0 million common shares of Bellatrix. The transaction has an effective date of Aug. 1, 2018, is expected close early in the fourth quarter of 2018, and is subject to approval by Grafton's lender and its shareholders. Bellatrix expects to file a prospectus supplement under its existing $500-million base shelf prospectus to qualify the issuance of the common shares to Grafton.