Canada’s Bellatrix Exploration to sell non-core assets in Strachan area, Alberta

Canadian-based Bellatrix Exploration has signed an agreement to sell its non-core assets in the Strachan area of Alberta to an undisclosed buyer for $34.5m.

According to the company, the sale is in line with its strategy to maintain a focused and concentrated asset base.

As per recent field estimates, the average production volumes from the Strachan asset are around 1,750 barrels of oil equivalent a day (boed), resulting in a flowing barrel metric of $19,700boed.

Following the closure of the transaction, Bellatrix is expected to review its full year capital expenditure budget for this fiscal year.

The objective of the review is to reinvest a portion of the asset sale proceeds into the company’s Spirit River liquids-rich natural gas play to maintain current production volume guidance.

In addition, the company intends to use the remaining portion of the proceeds to reduce outstanding debt, thereby improving its liquidity position.

The completion of the transaction is subject to customary closing conditions and is expected to occur on or before the end of the month.

In December last year, Bellatrix completed the previously announced sale of its non-core assets in the greater Harmattan area of Alberta for $80m. 

Pursuant to the sale, the company received net cash proceeds of approximately $65m, and offered a $15m vendor take back loan to the purchaser.

Bellatrix Exploration is engaged in the exploration, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan.