Bellatrix pays $118M to increase Alder Flats holdings
Acquisition adds about the equivalent of about 2,200 barrels per day of production.
CALGARY — Bellatrix Exploration Ltd. has bought a group of oil and gas assets in its core Alder Flats area in west central Alberta for $118 million.
The company said the deal increases its stake in the Mannville formation to 96.9% from 39.6% over 10 gross sections of land.
The acquisition adds about the equivalent of about 2,200 barrels per day of production, with 80% of that in the form of natural gas and 20% in liquids.
Bellatrix said it bought the assets from a senior oil and gas producer, which wasn’t identified.
It expects to spend $16 million next year on the assets, to about double their output to 4,500 barrels per day in 2015.
The company also raised its production guidance for this year and next.
It now expects to finish 2014 with production in the range of 47,000 and 49,000 boe/d, about 2,000 barrels than it had earlier forecast.
The company also increased its projected 2015 average production range by 1,000 barrels to between 49,000 and 50,000 boe/d.
However, Bellatrix says its 2015 net capital spending budget will be reduced to $400 million from $450 million in light of recent commodity price changes.
© 2014 The Canadian Press