Bellatrix Exploration Ltd. (NYSE: BXE) has entered into a definitive agreement for an asset sale and joint venture with Daewoo International Corp. and Devonian Natural Resources Private Equity Fund. Under the terms of the associated agreements, Calgary-based Bellatrix will sell, effective July 1, 2013, to Devonian and Daewoo jointly 50% of the company's working interest share of its producing assets, an operated compressor station and gathering system and related land acreage in the Baptiste area of West Central Alberta for gross consideration of $52.5 million, subject to closing adjustments. The sold assets are producing approximately 268 boe/d (67% gas and 33% oil and liquids) net to the sold assets and include 3,858 net acres of Cardium rights and 1,119 net acres of Mannville rights.
The JV, which will be effective as of July 1, 2013, will encompass a multiyear commitment to jointly develop the aforementioned acreage in Ferrier and Willesden Green of West Central Alberta encompassing 70 gross wells with anticipated total capital expenditures to the JV of approximately $200 million. Certain conditions precedent to closing, including Korean governmental and regulatory approvals, are expected to be satisfied or waived by August 30, 2013 which is expected to enable closing to occur on or before September 16, 2013.
Upon closing Bellatrix plans to increase its previously announced net capital expenditure plan for 2013 to approximately $235 million, and will utilize the net proceeds from the disposition to reduce the Company's indebtedness, and ultimately will direct it to the continued development of its Cardium and Mannville asset base.
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 692 net remaining Cardium locations and 401 net Notikewin/Falher locations as of January 1, 2013 representing net remaining capital requirements of $4.34 billion based on current costs. The JV represents approximately 4.5% of the aforementioned inventory. As at June 30, 2013, Bellatrix has approximately 201,891 net undeveloped acres of land in Alberta, British Columbia and Saskatchewan and including all opportunities has approximately 1,700 net exploitation drilling opportunities identified, with capital requirements of $8.22 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/Falher prospective lands.
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