Bellatrix Exploration has signed an agreement to sell a 35% minority interest in the Bellatrix O'Chiese Nees-Ohpawganu'ck, deep-cut gas plant at Alder Flats in Alberta, Canada, and the associated gathering pipelines to Keyera Partnership for C$112.5m ($86m).
Keyera is one of the current co-owners of the Alder Flats plant, which has a design inlet capacity of 230mmcf/d and is being developed in two phases.
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Phase I was commissioned in May last year, while Phase II is expected to have a design inlet capacity of 120 million ft³ per day, is currently under construction and scheduled for completion in the first half of 2018.
At present, Bellatrix owns a 60% stake in the plant.
As part of the deal, Bellatrix and Keyera will also sign an agreement, pursuant to which the former will have access to the purchased capacity for ten years.
Bellatrix will also remain the operator of the Alder Flats plant and retain a 25% interest in it upon completion of the transaction.
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By GlobalDataThe company will have the option to reacquire a 5% stake in the plant near the end of the final year of the agreement for $8m.
Bellatrix is responsible for constructing phase II and funding 60% of the costs.
Keyera president and CEO David Smith said: "The acquisition is expected to be immediately accretive to Keyera's distributable cash flow per share, which creates value for our shareholders.
"With strong geology supporting producer activity in the area, the Alder Flats Plant is expected to remain a core gathering and processing asset for Keyera and a cost-effective, networked processing solution for area producers over the long term."
The transaction is subject to customary closing conditions and expected to conclude in August this year.
