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Bellatrix exceeds exit guidance, averaging 19,600 boepd during November 2012, announces an increase in its credit facilities and layers in additional commodity fixed price contracts for 2013

December 12, 2012

TSX, NYSE MKT: BXE

CALGARY, Dec. 12, 2012 /PRNewswire/ – Bellatrix Exploration Ltd. (“Bellatrix”
or the “Company”) (TSX, NYSE MKT: BXE) is pleased to announce that
average production in the month of November 2012 (based on field
estimates) averaged 19,600 barrels of oil equivalent per day (boe/d)
and that  it has completed its mid-year review of its 2012 credit
facilities and provides an update of its recent commodity price risk
management activities.

Bellatrix continues to expect it will meet its previously announced 2012
calendar year guidance of average daily production of 16,500 to 17,000
boe/d and announces that month of November 2012 average field
production of 19,600 boe/d had exceeded its exit rate guidance of
19,000 boe/d to 19,500 boe/d. Total crude oil, condensate and NGLs
averaged 32% of field production volumes for the month of November
2012.

During the 3(rd) quarter of 2012, the Company drilled and completed 7 gross Cardium
wells in the Ferrier/Brazeau area of West Central Alberta. The 7 gross
(6.21 net) Cardium wells averaged 987 boe/d for the first 7 days of
production (IP 7), 966 boe/d for the first 15 days of production (IP
15) and 906 boe/d for the first 30 days of production (IP 30).
Additionally the Company drilled 2 gross (1.5 net) Notikewin/Falher
liquids rich gas wells in the third quarter of 2012. The 100% WI well
was placed on production October 4, 2012 and is currently producing
10.5 mmcf/d yielding 35 bbls of NGLs per mmcf. The second well (0.5
net) was placed on production on October 26, 2012 and is currently
producing 12.5 mmcf/d yielding 35 bbls of NGLs per mmcf.

A syndicate of banks led by National Bank of Canada recently completed
its semi-annual borrowing base redetermination for November 30, 2012.
Based on Bellatrix’s 2012 mid-year review, effective December 13, 2012,
the Company’s borrowing base was increased by $20 million to $220
million through to the next scheduled borrowing base determination to
be completed on or before May 31, 2013. In Bellatrix’s view this 10%
increase from the previous borrowing base of $200 million is a direct
result of Bellatrix’s closing of its previously announced asset
acquisition, the layering in of additional commodity fixed price
contracts for 2013, as well as the strong 2012 drilling results which
delivered significant reserves and production growth in the first half
of 2012.

The Company’s expanded facilities consists of a $25 million demand
operating facility provided by a Canadian bank and an $195 million
extendible revolving term credit facility provided by two Canadian
banks and a Canadian financial institution. The increased credit
facilities will be available to finance Bellatrix’s ongoing capital
expenditures, working capital requirements and for general corporate
purposes.

On May 25, 2012, Bellatrix executed an amending and restated credit
agreement with its banking syndicate that provided for the extension of
the revolving period of the existing credit facility from June 26, 2012
to June 25, 2013. Amounts borrowed under the credit facility will bear
interest at a floating rate based on the applicable Canadian prime
rate, U.S. base rate or LIBOR margin rate, plus between 1.00% and
3.50%, depending on the type of borrowing and the Company’s debt to
cash ratio. A standby fee is charged of between 0.50% and 0.875% on the
undrawn portion of the credit facilities, depending on the Company’s
debt to cash flow ratio.

On November 15, 2012, Bellatrix closed the previously announced  $21
million asset acquisition of additional highly prospective Cardium and
Notikewin/Falher lands and production in the Willesden Green area of
Alberta.

In summary, Bellatrix has the following crude oil and natural gas
commodity price risk management contracts in place for 2013.  The
conversion of $/GJ to $/mcf is based on an average corporate heat
content rate of 40.8 Mj/m(3).

     ___________________________________________________________________
    |   Product |                  Term      |   Volume  |Average Price |
    |___________|____________________________|___________|______________|
    | Crude Oil |Jan 1, 2013 to Dec. 31, 2013|1,500 bbl/d|$94.50 CDN/bbl|
    |___________|____________________________|___________|______________|
    |Natural gas|Apr 1, 2013 to Oct. 31, 2013|26.1 mmcf/d|$4.72 CDN/mcf |
    |___________|____________________________|___________|______________|

Based on month of November 2012 average field production volumes of
approximately 19,600 boe/d annualized for 2013, Bellatrix has put in
place price protection on approximately 30% of annual production
volumes.

To further clarify, Bellatrix recently entered into the two previously
mentioned commodity price risk management contracts consisting of two
natural gas fixed price swaps for 20,000 GJ/d and 10,000 GJ/d
respectively for the period April 1, 2013 to October 31, 2013 at a
prices of CDN$4.0875/GJ (CDN$4.70/mcf) and CDN$4.15/GJ (CDN$4.77/mcf). 
Each of these summer 2013 natural gas fixed price swaps were enhanced
and received a premium price in 2013 by placing a call on 2,000 bbl/d
and 1,000 bbl/d respectively at US$105 for the calendar year 2014.

As at December 12, 2012, Bellatrix has entered into commodity price risk
management arrangements as follows:


    Type          Period      Volume          Price          Price   Index
                                              Floor        Ceiling

    Crude oil    January       1,000   $  90.00 CDN   $  90.00 CDN     WTI
    fixed        1, 2012       bbl/d
                 to Dec.
                31, 2012

    Crude oil    January       1,000   $  90.49 CDN   $  90.49 CDN     WTI
    fixed        1, 2012       bbl/d
                 to Dec.
                31, 2012

    Crude oil    January       1,000   $  96.40 CDN   $  96.40 CDN     WTI
    fixed        1, 2012       bbl/d
                 to Dec.
                31, 2012

    Crude oil    January       1,500   $  94.50 CDN   $  94.50 CDN     WTI
    fixed        1, 2013       bbl/d
                 to Dec.
                31, 2013

    Crude oil    January   833 bbl/d              -   $  110.00        WTI
    call         1, 2012                                        US
    option       to Dec.
                31, 2012

    Crude oil    January       3,000              -   $  110.00        WTI
    call         1, 2013       bbl/d                            US
    options      to Dec.
                31, 2013

    Crude oil    January       3,000              -   $  105.00        WTI
    call         1, 2014       bbl/d                            US
    options      to Dec.
                31, 2014

    Natural     April 1,      20,000   $ 4.0875 CDN   $ 4.0875 CDN    AECO
    gas fixed    2013 to        GJ/d
                Oct. 31,
                    2013

    Natural     April 1,      10,000   $   4.15 CDN   $   4.15 CDN    AECO
    gas fixed    2013 to        GJ/d
                Oct. 31,
                    2013

Bellatrix continues to focus on growth by development of its core
Cardium and Notikewin/Falher assets utilizing its large inventory of
geological prospects. The Company has developed an inventory of 669 net
remaining Cardium locations and 358 net Notikewin/Falher locations
representing a net remaining capital requirements of $4.06 billion
based on current costs. As at September 30, 2012, Bellatrix has
approximately 197,428 net undeveloped acres and including all
opportunities has in excess of 1,554 net exploitation drilling
opportunities identified, with capital requirements of $7.09 billion
based on current costs representing over 40 years of drilling inventory
based on current annual cash flow.  The Company continues to focus on
adding Cardium and Notikewin prospective lands.

The Company’s current corporate presentation is available at www.bellatrixexploration.com.

Bellatrix Exploration Ltd. is a Western Canadian based growth oriented
oil and gas company engaged in the exploration for, and the
acquisition, development and production of oil and natural gas reserves
in the provinces of Alberta, British Columbia and Saskatchewan.  Common
shares and convertible debentures of Bellatrix trade on the Toronto
Stock Exchange (“TSX”) under the symbols BXE and BXE.DB.A, respectively
and the common shares of Bellatrix trade on the NYSE MKT under the
symbol BXE.

All amounts in this press release are in Canadian dollars unless
otherwise identified.

Forward looking statements: Certain information set forth in this news
release, including management’s assessments of the future plans and
operations including  anticipated 2012 average daily production and
exit rate, anticipated use of availability under bank facility and
amount of capital required to develop inventory and time for
development. May contain forward-looking statements, and necessarily involve risks and
uncertainties, certain of which are beyond Bellatrix’s control,
including risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets
and other economic and industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to
retain drilling services, incorrect assessment of value of acquisitions
and failure to realize the benefits therefrom, delays resulting from or
inability to obtain required regulatory approvals, the lack of
availability of qualified personnel or management, stock market
volatility and ability to access sufficient capital from internal and
external sources and economic or industry condition changes. Actual
results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any events anticipated by
the forward-looking statements will transpire or occur, or if any of
them do so, what benefits that Bellatrix will derive therefrom.
Additional information on these and other factors that could affect
Bellatrix are included in reports on file with Canadian securities
regulatory authorities and the United States Securities and Exchange
Commission and may be accessed through the SEDAR website (www.sedar.com), the SEC’s website (www.sec.gov or at Bellatrix’s website www.bellatrixexploration.com. Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and Bellatrix
does not undertake any obligation to update publicly or to revise any
of the included forward looking statements, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities law.

Conversion: The term barrels of oil equivalent (“boe”) may be
misleading, particularly if used in isolation. A boe conversion ratio
of six thousand cubic feet of natural gas to one barrel of oil
equivalent (6 mcf/bbl) is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based on
the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value.
All boe conversions in this report are derived from converting gas to
oil in the ratio of six thousand cubic feet of gas to one barrel of
oil.

Initial production rates:  Initial production rates disclosed herein may
not necessarily be indicative of long-term performance or ultimate
recovery.

 

SOURCE Bellatrix Exploration Ltd.


Source: PR Newswire