Bellatrix completes asset sale and joint venture with Daewoo and Devonian subsidiaries

Bellatrix Exploration has announced the asset sale and establishment of a joint venture (JV) with the Canadian subsidiaries of Daewoo International and Devonian Natural Resources Private Equity Fund.

The company has sold an aggregate 50% of its working interest share of producing assets, an operated compressor station and gathering system and related land acreage in the Baptiste area of West Central Alberta for approximately $52.5m.

The JV will jointly develop the acreage, which encompasses 70 gross wells. Total expenditure is expected to be approximately $200m.

The sold assets produce around 268 barrels of oil equivalent a day, 67% gas and 33% oil and liquids. Bellatrix has also divested around 858 net acres of Cardium rights and 1,119 net acres of Mannville rights as part of the deal.

Bellatrix has increased its net capital expenditure plan to approximately $235m for 2013, and will use the net proceeds from the disposition to develop its Cardium and Mannville asset base.

Bellatrix has around 201,891 net undeveloped acres of land in the provinces of Alberta, British Columbia and Saskatchewan.