Canadian-based Bellatrix Exploration has signed an agreement to sell its non-core assets in the Strachan area of Alberta to an undisclosed buyer for $34.5m.

According to the company, the sale is in line with its strategy to maintain a focused and concentrated asset base.

As per recent field estimates, the average production volumes from the Strachan asset are around 1,750 barrels of oil equivalent a day (boed), resulting in a flowing barrel metric of $19,700boed.

Following the closure of the transaction, Bellatrix is expected to review its full year capital expenditure budget for this fiscal year.

The objective of the review is to reinvest a portion of the asset sale proceeds into the company’s Spirit River liquids-rich natural gas play to maintain current production volume guidance.

"The objective of the review is to reinvest a portion of the asset sale proceeds into the company’s Spirit River liquids-rich natural gas play to maintain current production volume guidance."

In addition, the company intends to use the remaining portion of the proceeds to reduce outstanding debt, thereby improving its liquidity position.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The completion of the transaction is subject to customary closing conditions and is expected to occur on or before the end of the month.

In December last year, Bellatrix completed the previously announced sale of its non-core assets in the greater Harmattan area of Alberta for $80m. 

Pursuant to the sale, the company received net cash proceeds of approximately $65m, and offered a $15m vendor take back loan to the purchaser.

Bellatrix Exploration is engaged in the exploration, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan.