A non-brokered private placement of about 1.58 million common shares priced at CA$2.53 each—for gross proceeds of about CA$4 million—will help fund the purchase price alongside credit facilities.
Alberta's oil sands are the world's third-largest crude reserves after Saudi Arabia and Venezuela and Canada's fastest-growing source of greenhouse gas emissions.
As part of the deal, Bellatrix has retained formation rights above and below the Cardium on the Pembina, Alberta, acreage, including the Notikewin, Falher and Wilrich members of the Spirit River Formation.
On the acquired assets in the Wilrich, Notikewin, Glauconite and Bluesky formations, about 149 gross (104.1 net) horizontal locations have been identified.
During the second quarter, ARC continued its noncore asset divestment program, divesting the remainder of low-netback operated shallow gas assets in southern Alberta.
Alberta's NDP government, elected in a sweeping majority last year, unsettled producers when it first announced plans to review oil and gas royalties to ensure the province received its fair share of hydrocarbon revenues.
In one encouraging sign for the oil and gas industry, Shell said on May 9 it restarted production at a reduced rate at its Albian oil sands mining operation in Alberta, adding it plans to fly staff in and out.
The lost capacity is equivalent to well over a third of the country's typical daily production, and almost all of Canada's crude from oil sands is exported to the U.S.
Long considered a front-runner in the race to build Canada's first LNG export project, the consortium behind Pacific NorthWest pledged last June to start construction as soon as it was approved by regulators, eyeing the end of 2015.
Proceeds from the sale of Slave Point and other noncore assets will help to strengthen the Calgary, Alberta-based company's balance sheet. It will also improve its financial flexibility and overall corporate metrics.