Bellatrix exits 2013 with record production and layers in additional commodity fixed price contracts for 2014

Bellatrix exits 2013 with record production and layers in additional commodity
                        fixed price contracts for 2014

PR Newswire

CALGARY, Jan. 7, 2014

TSX, NYSE MKT: BXE

CALGARY, Jan. 7, 2014 /PRNewswire/ - Bellatrix Exploration Ltd. ("Bellatrix"
or the "Company") (TSX, NYSE MKT: BXE) is pleased to announce it exited 2013
with record production and provides an update of its recent commodity price
risk management activities.

2013 has been  an extraordinary  year earmarked by  record production  growth, 
announcing three separate joint ventures designed to accelerate our program on
a  promoted  basis,  an  equity  financing,  redemption  of  its   convertible 
debentures and  closing  on  December  11,  2013  of  an  impactful  corporate 
acquisition.  These  strategic   transactions  strengthen   the  Company   by 
accelerating our ability to provide shareholder value accretion.

2013 Exit and 2014 Guidance

Bellatrix exited 2013 with a record production level of 38,000 boe/d (weighted
total crude oil, condensate and NGLs representing 37%) and with  approximately 
2,000  boe/d  behind  pipe  waiting  to  be  brought  on  production  due   to 
infrastructure  constraints.  These  current  Infrastructure  constraints  are 
anticipated to be removed by mid-January 2014 after which time the Company's
field production is expected to be at +/- 40,000 boe/d (weighted total crude
oil, condensate and NGLs representing  37%). First quarter 2014 production  is 
also expected  to  average  +/-  40,000 boe/d  (weighted  total  crude  oil, 
condensate and NGLs exit at approximately 37%).

The Company navigated through severe weather challenges during the summer  and 
fall of 2013 which contributed to significant unscheduled down time at plants
that process  Bellatrix's  natural  gas  and  which  negatively  impacted  the 
Company's average annual 2013 production levels. Bellatrix was also negatively
impacted during 2013  by regulatory  delays in receiving  well licenses  which 
significantly delayed the start of the Q4 2014 drilling program. In  addition, 
as previously announced  in November 2013,  as part of  agreement with  Troika 
Resources Private Equity Fund ("Troika"),  Troika acquired 14 gross wells  (as 
included in the total expected 63 gross well program) for wells that had  been 
drilled since January 1, 2013 resulting in net proceeds of $16.7 million  that 
was  received  by  Bellatrix.   This  agreement  resulted   in  the  sale   of 
approximately 1,300  boe/d  to Troika  at  closing which  negatively  impacted 
production post-closing. Despite  these many  challenges in  2013 the  Company 
exited 2013 with record production levels of 38,000 boe/d which represented  a 
95% increase over its 2012 exit production level of 19,500 boe/d.  Bellatrix's 
expects its 2013  calendar year average  daily production will  be +/-  22,000 
boe/d which represents a 32% increase  over 2012 average production of  16,686 
boe/d.

Since November 2013 and  for all of  2014, Bellatrix plans  to continue to  be 
active in drilling with 10-12 rigs  operating in its two core resource  plays, 
the Cardium oil  (Bellatrix is  the second largest  land holder  with 338  net 
sections in the  Cardium play)  and Mannville condensate  rich gas,  utilizing 
horizontal drilling  multi-fracturing technology.  With  the closing  of  the 
acquisition of Angle Energy Inc. ("Angle") in December 2013, an initial  gross 
budget of $610 million (including JV partner capital) for a net capital budget
of $370  million has  been  set for  fiscal 2014.  Based  on the  timing  of 
proposed expenditures, downtime for  anticipated plant turnarounds and  normal 
production declines, execution of  the 2014 budget  is anticipated to  provide 
2014 average daily production  of approximately +/- 44,000  boe/d and an  exit 
rate of approximately +/- 47,000 boe/d.

The 2014  net capital  budget of  $370 million  is comprised  of drilling  and 
completion costs of $250 million;  facility and infrastructure costs of  $100 
million and land,  geological and  other related  costs of  $20 million.  The 
Company plans to  drill/participate in  146 gross  (76.27 net)  wells in  2014 
resulting in 115 gross (65.71 net) Cardium oil wells and 31 gross (10.56  net) 
Mannville condensate rich gas wells.

2014 funds from operations are expected to be $360 million or $2.10 per  basic 
share which  when combined  with the  Company's existing  $500 million  credit 
facilities, will provide ample funds to execute the budget while maintaining a
strong balance sheet.

Based on an assumed 2014 average Edmonton Light oil price of $90/bbl and  AECO 
$4.00/mcf, average  2014 royalty  rates of  18.8% and  average 2014  operating 
costs of  $7.50 boe/d,  the Company  expects to  exit 2014  with net  debt  of 
approximately $410 million or 1.06 times net debt to trailing estimated fourth
quarter 2014 funds from operations.

Additional 2014 Price Risk Management Contracts

In summary, Bellatrix has  the following crude oil  and natural gas  commodity 
price risk management contracts in place for 2014. The conversion of $/GJ  to 
$/mcf is  based on  an average  corporate  heat content  of 40.8  Mj/m^3.  The 
conversion to CDN$ from US$ is based on an exchange rate of $0.94 CDN/$1.00US.

  Product               Term                Volume    Average Price
 Crude Oil  Jan. 1, 2014 to Dec. 31, 2014 6,000 bbl/d $97.07 CDN/bbl
Natural gas Jan. 1, 2014 to Dec. 31, 2014 63.8 mmcf/d $4.04 CDN/mcf

Bellatrix recently entered into five commodity price risk management contracts
consisting of two natural  gas fixed price swaps  for the period February  1, 
2014 to  December 31,  2014 for  10,000 GJ/d  each at  prices of  CDN$3.79/GJ 
(CDN$4.36/mcf)  and   CDN$3.80/GJ   (CDN$4.37/mcf)  respectively   and   three 
additional natural gas fixed price swaps  totaling 15,000 GJ/d for the  period 
July 1, 2014 to December 31, 2014 at prices of CDN$3.71/GJ (CDN$4.26/mcf).

As at  January  6, 2014,  Bellatrix  has  entered into  commodity  price  risk 
management arrangements for 2014 as follows:

                                                               
Type            Period        Volume    Price Floor     Price Ceiling    Index
Crude oil Jan. 1, 2014     500 bbl/d     $          $   93.30 US      WTI
fixed      to Dec. 31,                     93.30 US
                  2014
Crude oil Jan. 1, 2014   1,500 bbl/d     $          $  94.00 CDN      WTI
fixed      to Dec. 31,                        94.00
                  2014                          CDN
Crude oil Jan. 1, 2014     500 bbl/d     $          $   95.00 US      WTI
fixed      to Dec. 31,                     95.00 US
                  2014
Crude oil Jan. 1, 2014   1,500 bbl/d     $             $  95.22 CDN      WTI
fixed      to Dec. 31,                        95.22
                  2014                          CDN
Crude oil Jan. 1, 2014     500 bbl/d $          $  98.30 CDN      WTI
fixed      to Dec. 31,                        98.30
                  2014                          CDN
Crude oil Jan. 1, 2014   1,000 bbl/d     $     $  99.50      WTI
fixed      to Dec. 31,                        99.50               CDN
                  2014                          CDN
Crude oil   Jan.     500 bbl/d     $          $  99.60      WTI
fixed       1, 2014 to                        99.60               CDN
              Dec. 31,                          CDN
                  2014
Crude oil Jan. 1, 2014   1,500 bbl/d       -      $  105.00US      WTI
call       to Dec. 31,
options           2014
Natural   Jan. 1, 2014   15,000 GJ/d     $   3.05      $       AECO
gas fixed  to Jun. 30,                          CDN          3.05 CDN
                  2014
Natural   Jan. 1, 2014 20,000    $  3.30      $           AECO
gas fixed  to Dec. 31,          GJ/d            CDN          3.30 CDN
                  2014
Natural   Jan. 1, 2014   20,000 GJ/d     $  3.60      $           AECO
gas fixed  to Dec. 31,                          CDN          3.60 CDN
                  2014
Natural   Jul. 1, 2014   15,000 GJ/d     $  3.71      $          AECO
gas fixed  to Dec. 31,                          CDN          3.71 CDN
                  2014
Natural   Feb. 1, 2014   10,000 GJ/d     $  3.79      $          AECO
gas fixed  to Dec. 31,                          CDN          3.79 CDN
                  2014
Natural   Feb. 1, 2014   10,000 GJ/d     $  3.80      $          AECO
gas fixed  to Dec. 31,                          CDN          3.80 CDN
                  2014

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 742 net remaining Cardium locations,
381 net  Notikewin/Falher  and  128 Mannville  locations  representing  a  net 
remaining investment of $4.97 billion (based on current costs). Bellatrix  has 
approximately 424,452 net undeveloped acres and including all opportunities of
approximately 2,000 net exploitation  drilling opportunities identified,  with 
capital requirements of $10.1 billion  representing over 30 years of  drilling 
inventory based on current annual cash flow and costs. 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 timing of the removal of infrastructure constraints and  anticipated 
production thereafter  and  commodity  mix,  anticipated  first  quarter  2014 
average daily  production rate  and commodity  mix, anticipated  2014  average 
daily production rate, exit rate  and commodity mix, 2014 capital  expenditure 
budget and nature of expenditures and drilling inventory and costs and time to
develop and estimated 2014 funds from  operation and funds from operation  per 
share, expectation  that  funds  flow and  available  credit  facilities  will 
provide ample  funds to  execute  budget and  maintain strong  balance  sheet, 
budgeted  2014  commodity  prices,  royalty  rates  and  operating  costs  and 
resulting 2014 net debt and net debt to trailing estimated fourth quarter 2014
funds  flow  from  operations  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. Estimated 2014 funds from operations and
funds from operation per share and 2014 yea-rend debt levels and expected 2014
net debt to trailing estimated fourth quarter 2014 funds flow from  operations 
may constitute financial  outlooks under applicable  securities laws and  were 
approved by management  on January  3, 2014  and such  financial outlooks  are 
contained herein to  provide the  reader with  an understanding  of the  funds 
expected to  be generated  by the  Company's operations  and thus  the  amount 
available to meet its required expenditures and payments based on the  various 
assumptions utilized and readers are cautioned that the information may not be
appropriate for other  purposes. 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 herein are derived from converting gas to oil in the ratio of  six 
thousand cubic feet of gas to one barrel of oil.

Non-GAAP Measures:  This press  release contains  the term  "funds flow  from 
operations" which  should  not  be  considered  an  alternative  to,  or  more 
meaningful than  "cash  flow  from  operating  activities"  as  determined  in 
accordance with  generally  accepted  accounting  principles  ("GAAP")  as  an 
indicator of the Company's performance. Therefore reference to funds flow from
operations or funds flow from operations per share may not be comparable  with 
the calculation of similar measures for other entities. Management uses  funds 
flow from  operations  to  analyze  operating  performance  and  leverage  and 
considers funds flow from  operations to be a  key measure as it  demonstrates 
the Company's ability to  generate the cash necessary  to fund future  capital 
investments and  to repay  debt.  Funds flow  from  operations per  share  is 
calculated using the weighted average number of shares for the period.

This press release also contains the terms total net debt and net debt.  Total 
net debt  is  calculated  as  long-term debt  plus  the  net  working  capital 
deficiency  (excess)   before  short-term   commodity  contract   assets   and 
liabilities and current finance lease  obligations. Net debt is calculated  as 
long-term debt  plus  the  net  working  capital  deficiency  (excess)  before 
short-term commodity contract assets and liabilities and current finance lease
obligations. Management  believes  these measures  are  useful  supplementary 
measures of the total amount of current and long-term debt.



SOURCE Bellatrix Exploration Ltd.

Contact:

Raymond G. Smith, P.Eng., President and CEO (403) 750-2420
or
Edward J. Brown, CA, Executive Vice President, Finance and CFO (403) 750-2655
or
Brent A. Eshleman, P.Eng., Executive Vice President (403) 750-5566
or
Troy Winsor, Investor Relations (800) 663-8072

Bellatrix Exploration Ltd.
1920, 800 - 5^th Avenue SW
Calgary, Alberta, Canada T2P 3T6
Phone: (403) 266-8670
Fax: (403) 264-8163
www.bellatrixexploration.com
 
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