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 
TSX, NYSE MKT: BXE 
CALGARY, Jan. 7, 2014 /CNW/ - 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      Jan. 1,     500 bbl/d     $              $  93.30 US      WTI
oil        2014 to                       93.30
fixed     Dec. 31,                          US 
          2014 
Crude      Jan. 1,   1,500 bbl/d     $              $ 94.00 CDN      WTI
oil        2014 to                       94.00
fixed     Dec. 31,                         CDN 
          2014 
Crude      Jan. 1,     500 bbl/d     $              $  95.00 US      WTI
oil        2014 to                       95.00
fixed     Dec. 31,                          US 
          2014 
Crude      Jan. 1,   1,500 bbl/d     $              $ 95.22 CDN      WTI
oil        2014 to                       95.22
fixed     Dec. 31,                         CDN 
          2014 
Crude      Jan. 1,     500 bbl/d     $              $ 98.30 CDN      WTI
oil        2014 to                       98.30
fixed     Dec. 31,                         CDN 
          2014 
Crude      Jan. 1,   1,000 bbl/d     $              $                WTI
oil        2014 to                       99.50        99.50 CDN
fixed     Dec. 31,                         CDN 
          2014 
Crude         Jan.     500 bbl/d     $              $                WTI
oil     1, 2014 to                       99.60        99.60 CDN
fixed     Dec. 31,                         CDN 
          2014 
Crude      Jan. 1,   1,500 bbl/d       -            $ 105.00 US      WTI
oil        2014 to
call      Dec. 31,
options       2014 
Natural    Jan. 1,   15,000 GJ/d     $    3.05      $               AECO
gas        2014 to                         CDN         3.05 CDN
fixed     Jun. 30, 
          2014 
Natural    Jan. 1,        20,000     $              $               AECO
gas        2014 to          GJ/d          3.30         3.30 CDN
fixed     Dec. 31,                         CDN 
          2014 
Natural    Jan. 1,   20,000 GJ/d     $              $               AECO
gas        2014 to                       3.60          3.60 CDN
fixed     Dec. 31,                         CDN 
          2014 
Natural    Jul. 1,   15,000 GJ/d     $              $               AECO
gas        2014 to                       3.71          3.71 CDN
fixed     Dec. 31,                         CDN 
          2014 
Natural    Feb. 1,   10,000 GJ/d     $              $               AECO
gas        2014 to                       3.79          3.79 CDN
fixed     Dec. 31,                         CDN 
          2014 
Natural    Feb. 1,   10,000 GJ/d     $              $               AECO
gas        2014 to                       3.80          3.80 CDN
fixed     Dec. 31,                         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. 
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 - 5th Avenue SW Calgary, Alberta, Canada 
T2P 3T6 Phone: (403) 266-8670 Fax: (403) 264-8163 www.bellatrixexploration.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2014/07/c7351.html 
CO: Bellatrix Exploration Ltd.
ST: Alberta
NI: OIL ORDER  
-0- Jan/07/2014 13:00 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.