Bellatrix Exploration Ltd. (NYSE: BXE) is jettisoning some of its noncore Cardium assets to repay debt, the Calgary, Alberta-based company said Sept. 19.

InPlay Oil Corp., also based in Calgary, is paying Bellatrix C$47 million for certain Cardium assets in the greater Pembina area of Alberta. The acquisition includes formation rights in the Cardium only, which had oil weighted production of about 930 barrels of oil equivalent per day, according to the release.

As part of the deal, Bellatrix has retained formation rights above and below the Cardium on the Pembina acreage, including the Notikewin, Falher and Wilrich members of the Spirit River Formation.

Total consideration is comprised of C$42 million cash, and about 16.7 million shares of InPlay with a estimated value of C$0.30 per share.

InPlay, currently a private E&P, has also announced a proposed reverse takeover transaction that would provide for public listing for its shares on the Toronto Stock Exchange, the release said.

Bellatrix plans to use cash proceeds from the asset sale to repay bank debt, including the remaining C$12.9 million balance outstanding on its non-revolving term facility and some of its syndicated facility. The company said it estimates that its current outstanding bank debt following the asset sale will be about C$78 million, representing a reduction of C$236 million from June 30.

Subject to a number of conditions, the asset sale is expected to close on Nov. 11, with an effective date of June 1.