Each one in plain English, with the numbers worked through for a shareholder.
15 Oct 2013capital raising announcement● NeutralMajor
On October 15, 2013 Bellatrix announced three things: a $240 million Ferrier Cardium joint venture with TCA Energy (a vehicle for Seoul-based Troika fund), closing expected by Nov 15, 2013; a $576 million deal to acquire Angle Energy via a plan of arrangement, with Angle holders choosing $3.85 cash or 0.4734 Bellatrix share (cash capped at $69.7 million, so prorated); and a $175 million bought deal financing (details truncated in the filing text). The Troika deal replaces the failed January Ferrier venture. The Angle purchase issues new Bellatrix shares, so existing holders would be diluted (inference), and requires a Bellatrix shareholder vote.
Grafton exercised its option to add $100 million to the June joint venture, taking it to $244 million (Grafton $200 million, 82%) and an expected 58-well program in Willesden Green and Brazeau. Bellatrix's 2013 net capital plan rises to about $240 million (excluding Grafton capital); production guidance is unchanged at 23,000-24,000 boe/d average and 30,000-31,000 boe/d exit. Grafton keeps a further $50 million option.
Bellatrix closed the Daewoo/Devonian asset sale ($52.5 million for 50% of its Baptiste-area working interest assets) and the roughly $200 million, 70-well joint venture in Ferrier and Willesden Green. It raised its 2013 net capital plan to about $235 million and used the net sale proceeds to reduce debt. This resolves the August 1 pending deal, and unlike the January Korean deal, it closed.
Bellatrix signed a definitive agreement with Daewoo International and Devonian Natural Resources Private Equity Fund to sell 50% of its working interest in Baptiste-area producing assets (about 268 boe/d) for $52.5 million, and to form a joint venture of about $200 million covering 70 gross wells in Ferrier and Willesden Green. Closing is expected on or before September 16, 2013, subject to conditions including Korean regulatory approvals. Bellatrix plans to raise its 2013 net capital plan to about $235 million and use the sale proceeds to reduce debt. This partly fills the gap left by the failed January Korean deal, with Korean-linked partners again involved.
Bellatrix closed a $122 million joint venture with Grafton Energy Co I Ltd. in the Willesden Green and Brazeau areas of Alberta, with Grafton contributing $100 million (82%) toward an expected 29-well program. This is a different deal from the failed Korean Ferrier venture; Bellatrix still says it is looking for partners for Ferrier and its other Cardium interests. Its 2013 net capital plan is now $210-220 million (excluding Grafton capital), with 2013 production guidance of 23,000-24,000 boe/d average and 30,000-31,000 boe/d exit. Grafton has until Sept 15, 2013 to add $100 million and a later option to add $50 million.
The Korean joint venture did not close: the Seoul-based partner could not meet the remaining closing conditions by May 31, 2013, and Bellatrix did not extend the deadline. Bellatrix says it will consider alternative joint venture partners for the Ferrier project and for its other Cardium interests, which ends the January 2013 deal and leaves the extra funding for the 2013 plan unresolved.
The Korean partner asked for and received a one-month extension to close the $300 million Ferrier Cardium joint venture announced in January, now expected on or before May 31, 2013. This delays the deal from the earlier April 30 target.
Routine notice that the annual general meeting will be held May 22, 2013 in Calgary, with an April 17, 2013 record date. It carries no business or financial news.
Bellatrix reported test results for its first long reach Falher horizontal liquids-rich gas well at Ferrier (100% working interest), which tested at a final 30 mmcf/d of gas with an estimated 1,050 bbls/d of liquids. The well went on production in early March 2013 at a restricted 20.4 mmcf/d of gas and an estimated 714 bbls/d of liquids; the company cautions test rates do not determine long-term output.
Bellatrix agreed a $300 million Cardium joint venture with an unnamed Seoul, Korea-based partner, which would put in $150 million for an expected 83-well program, with closing expected on or before April 30, 2013. Bellatrix would guarantee return of up to $30 million of the partner's capital if not recovered within 7 years, and its net 2013 capital plan rises from $180 million to $230-240 million. It also reported a December 14, 2012 land purchase of 11 sections and added gas price hedges.
Bellatrix agreed to buy more Cardium and Mannville land and production in the Willesden Green area of Alberta for $21 million, funded from existing credit facilities. The assets produce about 500 boe/d and the deal was expected to close November 15, 2012; the filing also says lenders agreed to keep the credit facilities at $200 million through May 31, 2013.
Bellatrix reported Q3 2012 sales averaging 15,503 boe/d and October 2012 production of 18,300 boe/d, with end-of-October field estimates of 19,000 boe/d. It says Q3 was hurt by wet weather, storms and plant turnarounds, still expects to meet its 2012 guidance (16,500-17,000 boe/d average, 19,000-19,500 boe/d exit), and is proposing a $180 million 2013 capital program.
