CALGARY, Sep. 6, 2011, 2011 (Canada NewsWire via COMTEX News Network) --
Bellatrix Exploration Ltd. ("Bellatrix" or the "Company") is pleased to provide the following operational update.
After the extremely wet spring breakup, commencing in August 2011, the Company has four rigs drilling Cardium horizontal wells in central Alberta and is on track to fulfill its drilling goals for the remainder of 2011. Bellatrix currently plans to drill 36 gross wells (25.84 net) in the second half 2011 drilling program. The Company expects to drill approximately 27 gross Cardium horizontal wells (21.8 net) and 9 gross Notikewin horizontal wells (4.04 net) in the West Central area of Alberta in the second half 2011 program.
The Company's drilling success and mapping revisions have resulted in increased inventory. The Company now has 400 net locations in the Cardium light gravity oil play and 174 locations in the Notikewin condensate rich gas resource play yielding over $2.1 billion in future development expenditures based on current costs of drilling.
Bellatrix continues to focus on the development of its core assets and conducts exploration programs utilizing its large inventory of geological prospects. As at June 30, 2011, Bellatrix has approximately 218,067 net undeveloped acres and including all opportunities has in excess of 900 exploitation drilling opportunities identified, representing over 10 years of drilling inventory based on annual cashflow. The Company continues to focus on adding Cardium prospective lands.
The Devonian aged Duvernay shale is emerging as one of the most promising resource plays in Canada. At the end of the second quarter of 2011, Bellatrix had acquired 49 gross (46 net) sections of Duvernay rights. After adjusting for recent expiries, the Company now controls 44 gross (43 net) sections of Duvernay rights in West Central Alberta. Bellatrix is currently planning to drill a horizontal Duvernay test well on the Company's acreage in the first quarter of 2012.
Management is proposing a 2012 capital expenditure program of approximately $180 million which is anticipated to be finalized in the fourth quarter of 2011. Based on the timing of proposed expenditures, downtime for anticipated plant turnarounds and normal production declines, execution of the 2012 plan is anticipated to provide 2012 average daily production of approximately 17,000 BOE per day. The 2012 capital expenditures are expected to be directed primarily towards horizontal drilling and completions activities in the Cardium and Notikewin resource plays.
Bellatrix recently entered into an additional price risk management contract consisting of a crude oil fixed price swap for 1,000 bbls/d for the period January 1, 2012 to December 31, 2012 at a price of CDN $90/bbl. As at September 6, 2011, Bellatrix has entered into commodity price risk management arrangements for 2012 as follows: