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    Bellatrix Investor Presentation Bellatrix Investor Presentation Presentation Transcript

    • CORPORATE PRESENTATION NOVEMBER 15, 2012TSX: BXE NYSE MKT: BXE
    • REAL GROWTH WITH THE DRILL BITTOP TIER PERFORMANCE Production Growth 155% (2009-2011) Liquids Production Growth 257% (2009-2011) Reserve Growth per Share 191% (2009 – 2011) Cash Flow Growth per Share 133% (2009-2011) Years of high ROR Drilling Inventory 40+ yrs APPLYING INNOVATION & TECHNOLOGY TO CREATE VALUE2 Bellatrix Corporate Presentation
    • CORPORATE SNAPSHOTLiquidity (past 6 months) 675,000 shares/dProduction guidance (2012e) 16,500 – 17,000 boe/dExit rate guidance (2012e) 19,000 – 19,500 boe/dOil / liquids weighting 35 % Capital structure Common shares - basic 107.6 mm Common shares - diluted 117.1 mm Convertible debentures outstanding $55.0 mm (4.75% Coupon $5.60 Strike) Insider ownership (fully diluted) 13.3% Tax pools (approximate as of Sept 30, 2012) $560 mm3 Bellatrix Corporate Presentation
    • OPERATIONS AT A GLANCEDecember 31, 2011(P&P) FD&A costs(including FDC) $9.29/boeReserve life index (P&P)(as at December 31, 2011) 10 yearsDecember 31, 2011 Recycle ratio(excluding FDC, P&P) 4.16xDecember 31, 2011 Recycle ratio(excluding FDC, proved) 3.01x4 Bellatrix Corporate Presentation
    • BELLATRIX STRATEGYo Enhance shareholder value with a focused exploitation program supported with targeted acquisitionso Cardium and Notikewin focused core areas continue to drive growth through horizontal drilling and multi-stage hydraulic fracturingo Large land base with significant inventory of low risk high rate of return drilling opportunities drive a substantial upsideo Prudent financial management in volatile times through commodity hedges and debt to cash flow maintenance DRILLING ORGANIC OPPORTUNITIES ADDS VALUE5 Bellatrix Corporate Presentation
    • BELLATRIX’S FINANCIAL FORECASTS 2012E 2011 Year over 2013E 2012 Year over Year YearCash from operations $115 - $120 $155 - $165 +24% +35%Cash per share $1.07 - $1.12 $1.45 - $1.55 +20% +36%Avg annual production (boe/d) 16,500 - 17,000 20,000 – 21,000 +40% +22%Exit Rate (boe/d) 19,000 – 19,500 21,500 - 22,500 +16% +13% Capital expenditures ($mm) $160 - $170 $175 - $185 Debt (including Convertible Debenture) $170 - $180 $190 - $200 Total credit capacity* $255 $255 Oil ($CDN/bbl) $88.50 $90.00 AECO ($CDN/GJ) $2.00 $3.00 Exchange rate ($CDN/$US) $1.00 $1.00 * Includes $55 million subordinated convertible debenture issued April 15, 2010 and credit facility $200 million through to May 31, 2013 6 Bellatrix Corporate Presentation
    • GROWING BELLATRIX2013 ESTIMATED CAPITAL BUDGET 20% Facilities 77% 1.5% Land and Seismic Drilling and Completions 1.5% Maintenance +/- $175 - $185 Million7 Bellatrix Corporate Presentation
    • TRACK RECORD OF PER SHARE GROWTHPRODUCTION UP 155% 22500 180LIQUIDS UP 257% 19,000 160 Oil and liquids 17500 34% 16,569 140 Natural gas 15,900 Production per share 15,503 14,209 35% 39% 34% Production per mm Shares 120 12500 11,837 37% 11,643 100 10,000 10,084 37% 9,119 38% 39% 80 7,617 26% 38% 7500 7,248 6,572 27% 26% 25% 60 40 2500 20 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 est -2500 08 Bellatrix Corporate Presentation
    • OPERATING EXPENSES AND NETBACKS TOTAL OPERATING EXPENSE ($/BOE) CORPORATE NETBACK ($ NETBACK)IIII 20 $30.00 18 $25.00 16 14 $20.00 12$/boe 10 $15.00 8 56% $10.00 6 4 $5.00 Before Risk Management 2 After Risk Management 0 $0.00 Date 9 Bellatrix Corporate Presentation
    • RESERVES GROWTHRESERVES (Mboe) RESERVES / SHARE (boe/share)70,000 0.7 Oil and liquids Oil and liquids65,000 265% 191% Natural gas Natural gas60,000 0.655,00050,000 0.5 38%45,000 38%40,000 0.435,00030,000 37% 0.3 40% 40% 37% 28%25,00020,000 28% 0.2 38% 29% 38%15,000 29%10,000 0.1 5,000 0 0.0 Proved P+P Proved P+P Proved P+P Proved P+P Proved P+P Proved P+P 2009 2010 2011 2009 2010 201110 Bellatrix Corporate Presentation
    • REVENUE AND CASH FLOW PER SHAREREVENUE ($MM’S) CASH FLOW / SHAREIAA Oil and Liquids300 106% 177% Natural Gas $1.20 Oil and Liquids $225250 $1.00 $1.08 $202 78%200 $0.91 Liquids $0.80 69%150 Liquids $0.60 $118 $109 $0.57100 52% 69% $0.40 48% Liquids $0.39 Liquids50 $0.20 0 $0.00 2009 2010 2011E 2012E** 2009 2010 2011 2012E ** Assumes avg 17000 boe/d 40% liquids, Edmonton Par $100/bbl, AECO $2.50/GJ 11 Bellatrix Corporate Presentation
    • FORMULA FOR GROWTHo Inventory of low risk development locations − 1,027 net locations (Cardium & Notikewin) − 1,554 net locations totalo Extensive undeveloped land base of 197,428 net acreso Stacked Hydrocarbon Bearing Reservoirs in WCA: Belly River +/- 1,300 m Cardium +/- 2,100 m Second White Specs +/- 2,200 m Viking +/- 2,300 m Notikewin +/- 2,400 m Falher +/- 2,500 m Rock Creek +/- 2,600 m Duvernay +/- 3,400 m12 Bellatrix Corporate Presentation
    • BALANCED RESOURCE PLAY INVENTORY Net Remaining Cost per well ($ mm) Net Remaining Inventory Investment ($mm) Belly River (HZ) 23 $2.5 58 Second White Specks (Vrt) 200 $0.25 5 Cardium (HZ) 669 $3.6 2,408 Notikewin/Falher (HZ) 358 $4.6 1,647 Viking, Mannville, Rock 58 $4.6 267 Creek (HZ) Duvernay (HZ) 246 $11.0 2,706 1,554 $7,091 Based upon internal estimates13 Bellatrix Corporate Presentation
    • CARDIUM LIGHT OIL RESOURCE PLAYCANADA’S LARGEST ACCUMULATION OF LIGHT OIL IN THE WESTERN CANADIANSEDIMENTARY BASINo Approximately 20,000 BELLATRIX WEST CENTRAL ALBERTA square mileso Approximately 1.3 Billion bbls Pembina produced to dateo Currently producing Norbuck West Pembina 57,000 bbl/do LOE < $8.00/boe Willesden Greeno F&D $12.87 Brazeauo 1,000 Gross, 669 net locationso Regional facilities & Ferrier infrastructure control14 Bellatrix Corporate Presentation
    • APPENDIXBUCK CREEK 12-25 OFFSET TO 15-2515 Bellatrix Corporate Presentation
    • CARDIUM OIL TYPE CURVEHORIZONTAL CARDIUM OIL WELL PRODUCTION 60 500 50Weekly Average Production (boed) 400 40 Contributing Wells 300 30 200 20 100 10 Producing Months 0 0 0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 100 104 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 BXE Production Oil Well Count 16 Bellatrix Corporate Presentation
    • BRAZEAU / FERRIER Conoco O’ Chiese BXE Land Sections 69 Gross 59 Net 75 mmcf/d capacity BXE 9.88% W.I. BXE Wells Drilled 20 Gross 18 Net Conoco Alder Flats BXE Drilling Inventory 451 Gross 400 Net 75 mmcf/d capacity BXE 20% W.I. Keyera MBLBrazeau (45-11W5) Cardium Oil Production 160 mmcf/d capacity Keyera NordeggCumulative Production, mbbl Well Payout 40 mmcf/d capacity Keyera West Pembina 140 mmcf/d capacity Months from Rig Release Keyera Strachan 230 mmcf/d capacity 17 Bellatrix Corporate Presentation
    • WEST PEMBINA Keyera Brazeau North 50 mmcf/d capacityBXE Land Sections 25 Gross 13 Net Blaze West PembinaBXE Wells Drilled 25 Gross 12 Net 150 mmcf/d capacityBXE Drilling Inventory 96 Gross 39 Net West Pembina (48-11W5) Cardium Oil Production, 2011-12 Drills 60 Well PayoutCumulative Production, mbbl 50 40 30 20 Months from Rig Release 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BELLATRIX (4 wells) INDUSTRY (2 Companies, 26 wells) 18 Bellatrix Corporate Presentation
    • CENTRAL PEMBINA BXE Land Sections 39 Gross 16 Net BXE Wells Drilled 22 Gross 19 Net BXE Drilling Inventory 237 Gross 90 Net Arc Pembalta 6 mmcf/d capacityCentral Pembina (48-08W5) Cardium Oil Production, 2010-12 Drills BXE 0.8% W.I. 60Cumulative Production, mbbl 50 Well Payout 40 30 20 Months from Rig Release 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BELLATRIX (14 wells) INDUSTRY (2 Companies, 11 wells) Conoco Lodgepole 45 mmcf/d capacity 19 Bellatrix Corporate Presentation
    • WILLESDEN GREEN BXE Land Sections 30 Gross 18 Net BXE Wells Drilled 12 Gross 9 Net BXE Drilling Inventory 165 Gross 89 Net Conoco Alder Flats Willesden Green (42-8W5) Cardium Oil Production 75 mmcf/d capacity 70 BXE 20% W.I. Keyera MBL 125 mmcf/d capacity 60Cumulative Production, mbbl 50 Well Payout 40 30 Months from Rig Release 20 10 PennWest Gas Plant 60 mmcf/d capacity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BELLATRIX (11 wells) INDUSTRY (3 Companies, 14 wells) 20 Bellatrix Corporate Presentation
    • CARDIUM TYPE CURVES600500400300200100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cardium Rich Gas, 31% liquids Cardium High GOR, 60% liquids Cardium Low GOR 87% liquids Internal estimates based upon January 1, 2012 Sproule Evaluation Based upon internal IRR $90 CDN/bbl and $3.00 CDN/mmBTU gas21 Bellatrix Corporate Presentation
    • CARDIUM ECONOMICS & INVENTORY Net Inventory Sections Wells Drilled Remaining Inventory Remaining Investment ($mm) To Date Brazeau/Ferrier 59 18 400 1,440 West Pembina 13 12 39 140 Central Pembina 16 19 90 324 Willesden Green 30 9 114 410 Total (inc. other) 111 58 669 2,408 Low GOR Cardium (Main High GOR Cardium (Willesden Pembina Pool) Grn/Brazeau/Ferrier) Rich Gas Cardium (Ferrier) Locations (net) 143 425 76 Drill, case, complete & tie-in $3.6M $3.6M $3.6M Initial Production, IP30 381 boed 585 boed 1427 boed EUR/well 229 mboe 352 mboe 674 mboe % liquids 86% 60% 31% NPVBT @ 10% $5.9M $6.9M $8.8M Rate of Return 131% 140% 283% Payout 9 months 9 months 5 months Based upon internal calculated IRR using $90 CDN/bbl and $3.00 CDN/mmBTU gas22 Bellatrix Corporate Presentation
    • CARDIUM PAD DRILLING EVOLUTIONDEVELOPMENT OF PAD HORIZONTAL WELL DRILLINGo 8 well Pads are capital efficient for down- spacing:o 8 wells will fully develop a sectiono 8 single laterals required to achieve the same well densityo Approximate cost savings of $0.3mm per well or $2.4mm/Pad23 Bellatrix Corporate Presentation
    • NOTIKEWIN/FALHER LIQUIDS RICH GAS Conoco O’ Chiese Conoco Alder Flats Keyera MBL BXE Land Sections 184 Gross 96 Net BXE Drilling Inventory 697 Gross 358 Net West Pembina o Regional Stacked Mannville Channel Trend Brazeau o 29 BXE and industry Notikewin/Falher gas wells > 10 MMcfd test o 13 gross wells (5.6 net) wells in 2011 Pembina o 5 gross wells (4 net) planned for 2012 o Regional facilities & infrastructure control Ferrier Willesden Green Keyera Strachan 230 mmcf/d capacity 24 Bellatrix Corporate Presentation
    • NOTIKEWIN/FALHER LIQUIDS RICH GAS DELIVERABILITY PROFILES Bellatrix Horizontal Notikewin Production * 7000 700NPV 10% BIT = $11.6 mm Monthly Average Liquid Production (bpd) Monthly Average Gas Production (mcf/d) 6000 600IRR = 188% 5000 500Payout 0.8 Years@ $3.00/mmBTU gas & $90 CDN/bbl 4000 400 3000 300NPV 10% BIT = $8.2 mmIRR = 101% 2000 200Payout 1.2 years 1000 100@ $2.00/mmBTU gas & $95 CDN/bbl 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 Producing Months Gas Liquids LOE < $1.17/mcfe F&D (2P) $1.11/mcfe * Population 14 Wells 25 Bellatrix Corporate Presentation
    • DUVERNAY SHALEo Industry has licensed 96 wells on Duvernay trendo 12 industry wells drilled at Ferrier Oil Windowo BXE 9-24 gas well produced 435 mmcf over 5 months, average 2.9 mmcf/d Liquid Rich Gaso 42 Gross, 41 Net sections held in liquids rich gas fairwayo BHP 63.6 MPa, Over pressured Dry Gas 19.1 KPa/Mo Thickness 33 m, TOC 4-5%, Adsorbed gas 8–10%; porosity 8-10%26 Bellatrix Corporate Presentation
    • PEER GROUP COMPARISON3 YEAR AVERAGE P+P F&D COSTS (INCL. FDC & EXC. ACQUISITIONS)$40.00$35.00 $35.95 $35.23$30.00 $28.53$25.00 $22.08$20.00 Average $19.77/P+P$15.00 $16.94 $14.29 $14.45 $14.48 $13.15$10.00 $11.77 $10.54 $5.00 $0.00 Exploration Bellatrix Ltd. Compared against selected peer group, $250mm EV to $1,500mm EV, 20% to 75% oil / liquids weighting Where 3 years of data is insufficient/non-meaningful, 2 year average P+P F&D costs are applied27 Bellatrix Corporate Presentation
    • PEER GROUP COMPARISONRECYCLE RATIO [2012E CF NETBACK / 3 YEAR P+P F&D (EXCL. FDC)]4.0x 3.6x 3.3x3.0x 3.2x 2.5x 2.4x Average 2.1x 2.2x2.0x 1.9x1.0x 1.1x 1.0x 0.7x 0.6x0.0x Exploration Bellatrix Compared against selected peer group, $250 mm EV to $1,500mm EV, 20% to 75% oil / liquids weighting. Ltd. Where 3 years of data is insufficient/non-meaningful, 2 year average P+P F&D costs are applied28 Bellatrix Corporate Presentation
    • SUMMARYo Knowledgeable management team with a long term proven track record of growing companies through the drill bito Prudent business management focused on per share growth, hedging and debt maintenanceo Top tier asset base with a significant high IRR inventory of drill ready locations ($7.0 billion)o Low cost operator, low cost findero Near term growth catalysts with forecast 2012 exit rate of 19,000 to 19,500 boe/d PROVIDING PER SHARE VALUE TO INVESTORS THROUGH DRILLING AND DEVELOPMENT29 Bellatrix Corporate Presentation
    • CORPORATE INFORMATIONBOARD OF DIRECTORS OFFICERS BANKERSW.C. (Mickey) Dunn Raymond G. Smith, P.Eng. National Bank of CanadaChairman President & CEO Alberta Treasury Branches HSBC Bank CanadaDoug N. Baker, FCA Edward J. Brown, CA Vice President, Finance & CFO EVALUATION ENGINEERSMurray L. Cobbe Sproule Associates Limited Brent A. Eshleman, P.Eng.John H. Cuthbertson, QC Executive Vice President REGISTRAR & TRANSFER AGENT Computershare Trust Company of CanadaMelvin M. Hawkrigg, BA, FCA, LLD (Hon.) Ving Y. Woo, P.Eng. Vice President & COO LEGAL COUNSELRobert A. Johnson, P.Geol. Burnet, Duckworth & Palmer LLP Russell G. Oicle, P.Geol.Keith E. Macdonald, CA Vice President, Exploration AUDITORS KPMG LLPRaymond G. Smith, P. Eng. Tim A. Blair Vice President, Land EXCHANGE LISTINGMurray B. Todd, B.Sc., P. Eng. The Toronto Stock Exchange - BXE Garrett K. Ulmer, P.Eng. NYSE MKT - BXE Vice President, Engineering Duncan A. Chisholm, B.Sc Vice President, Production & Business Development 30 Bellatrix Corporate Presentation
    • ANALYST COVERAGE Analyst Firm Jeremy McCrea AltaCorp Capital Omid Ameri Byron Securities Brian Kristjansen Canaccord Genuity Kevin Shaw Casimir Capital Arthur Grayfer CIBC Chris Bolton Fraser Mackenzie Geoff Ready Haywood Securities Christina Lopez Macquarie Capital Dan Payne National Bank Financial Ken Lin Paradigm Capital Paul Lee Scotia Capital31 Bellatrix Corporate Presentation
    • ADVISORYFORWARD LOOKING STATEMENTS: In the interest of providing Bellatrix’s shareholders and potential investors with information regarding Bellatrix, including management’sassessment of Bellatrix’s future plans and operations, certain statements made by the presenter and contained in these presentation materials (collectively, this “presentation”)are “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking statements”. The forward-lookingstatements contained in this presentation speak only as of the date of this presentation and are expressly qualified by this cautionary statement.Certain information contained herein may contain forward looking statements including managements assessment of future plans and operations, drilling plans and the timingthereof, commodity price risk management strategies, expected 2012 and 2013 average production and exit rate, estimates of commodity prices and exchange rates, estimated2012 and 2013 cash from operations, estimated recovery from wells to be drilled in 2012 capital expenditures and the nature of capital expenditures and cash from operations pershare and estimated 2012 and 2013 year end debt levels, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including,without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices,currency fluctuations, imprecision of reserve estimates, actual results from wells to be drilled may not be similar to the results from previous wells drilled, environmental risks,competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits ofacquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. The recovery andestimates of Bellatrixs reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Events or circumstances may causeactual results to differ materially from those predicted, as a result of the risk factors set out and other known and unknown risks, uncertainties, and other factors, many of whichare beyond the control of Bellatrix. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. As a consequence,actual results may differ materially from those anticipated in the forward-looking statements. Additional information on these and other factors that could effect Bellatrixsoperations and financial results are included in reports on file with Canadian securities regulatory authorities and the U.S. Securities Exchange Commission, may be accessedthrough the SEDAR website (www.sedar.com) the SEC’s website (www.sec.gov) or at Bellatrixs website (www.bellatrixexploration.com). Estimated 2012 and 2013 cash fromoperations, cash per share and 2012 and 2013 year end debt levels may constitute financial outlooks under applicable securities laws and were approved by management onOctober 31, 2012. The foregoing are included to provide readers with information as to the expected impact results on the cash from operations of the Corporation during theperiods indicated and the ability of the Company to fund its ongoing operations and capital expenditures and the resulting debt and may not be appropriate for other purposes.The forward-looking statements contained herein are made as at the date hereof and Bellatrix does not undertake any obligation to update publicly or to revise any of the includedforward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.NON-GAAP MEASURES: This presentation contains the term "cash from operations" which should not be considered an alternative to, or more meaningful than "cash flow fromoperating activities" as determined in accordance with Canadian GAAP as an indicator of the Companys performance. Therefore reference to cash from operations or cash fromoperations per share may not be comparable with the calculation of similar measures for other entities. Management uses cash from operations to analyze operating performanceand leverage and considers cash from operations to be a key measure as it demonstrates the Companys ability to generate the cash necessary to fund future capital investmentsand to repay debt. The reconciliation between cash flow from operating activities and funds flow from operations (the Company calculates funds flow from operations in the samemanner as cash from operations) can be found in the Companys Managements Discussion and Analysis. Cash from operations per share is calculated using the weightedaverage number of shares for the period. 32 Bellatrix Corporate Presentation
    • ADVISORYFD&A COSTS: This presentation includes calculations of finding, development and acquisition ("FD&A") costs for the year ended December 31, 2011. National Instrument 51-101Standards of Disclosure for Oil and Gas Activities ("NI 51-101") requires that written disclosure of finding and development costs to be calculated in accordance with Section 5.15 ofNI 51-101 which does not include the reserves additions associated with acquisitions or the costs of acquisitions in the calculation. The calculations of FD&A in this presentationinclude the reserves additions associated with acquisitions and the costs of acquisitions as the Company believes that including the effect of acquisitions provides useful informationto investors. FD&A costs for the year ended December 31, 2011 and 2010 are $9.29/boe and $12.89/ proved plus probable boe respectively and the average FD&A for the last threecompleted years is $13.69/ proved plus probable boe. The finding and developments costs calculated in accordance with Section 5.15 of NI 51-101 for the years ended December31, 2011 and 2010 are $13.00/proved boe ($9.29/proved plus probable boe) and $8.37/proved boe ($6.06/proved plus probable boe) and the average finding and development costsfor the last three completed years is $10.59/proved boe ($13.69/proved plus probable boe). The aggregate of the exploration and development costs incurred in the most recentfinancial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for thatyear.BOE PRESENTATION: In this presentation, production is stated in barrels of oil equivalent (“BOE”) using a six to one conversion basis when converting thousands of cubic feet ofnatural gas to barrels of oil and a one to one conversion basis for natural gas liquids. Such conversion may be misleading, particularly if used in isolation. A 6:1 conversion ratio isbased on energy equivalence between natural gas and oil at the burner tip and does not represent economic equivalence at the wellhead or point of sale.INITIAL PRODUCTION RATES: Initial Production rates discloses herein may not be indicative of long-term performance or ultimate recovery.ESTIMATED ULTIMATE RECOVERY (EUR): In this presentation, estimated ultimate recovery for Cardium oil wells is a representative value within the range of estimates of provedplus probable reserves per well as evaluated by Sproule Associates Limited effective December 31, 2011 based on forecast prices and costs. Estimated ultimate recovery forNotikewin wells is a representative value within the range of estimates of proved plus probable reserves per well as evaluated by Sproule Associates Limited effective December 31,2011 based on forecast prices and costs. Estimated ultimate recovery for Duvernay wells does not represent an estimate of resources but has been provided to show managementsassumptions used for its internal projections and plans. There is no certainty that any resources will be discovered for such Duvernay wells. If discovered, there is no certainty that itwill be commercially viable to produce any portion of the resources.CURRENCY: All dollar amounts in this presentation are Canadian dollars unless otherwise identified. 33 Bellatrix Corporate Presentation
    • APPENDIXCOMMODITY RISKOil Jan 1 – Dec 31, 2012 3,000 bopd $92.30 CDN/bblOil Jan 1 – Dec 31, 2013 1,500 bopd $94.50 CDN/bblGas* May 1 – Oct 31, 2012 36.4 mmcfd $3.87 CDN/mcfo 58 percent of Q2 & Q3 production hedged in 2012 based on Q1 actualo * Placed a call on 3,000 bbl/d at $US110/bbl for the year 2013o Assumes $US/$CDN currency conversion of 1 to 1 and a 39 Mj/m3 average heat content34 Bellatrix Corporate Presentation
    • APPENDIXBXE DRILLING SUCCESS AT 100% • Special Care and Attention to Rock Composition, Depositional History, Post Depositional Alteration and Structure • Define the “Sweet Spot” • Petrographic Support Provides a Competitive Advantage • Detailed evaluations of potential reservoirs for porosity , permeability: grainsize, composition, cements, clay fraction, fracturing. • Facies determination using ichnofacies evaluation using trace fossils in core and drill cuttings • Fracture identification in Cardium and Duvernay • High grading of play inventory via ranking of reservoir character • Geophysical Support in both Structural and Stratigraphic35 Bellatrix Corporate Presentation
    • APPENDIXFERRIER – FALHER “SWEET SPOT” • Falher “Sweet Spot” identified • 25 Highly Productive Falher Liquids Rich Gaswells drilled • The BXE Edge: Petrology, 3D seismic and aeromagnetics “Define the Sweet Spot” • Thick coarse grained, silica rich channels • Underlying structure influenced deposition and post depositional fracturing • Recent modified completion at 13-1, along valley margin, 40T slick water • New Technique enhances Inventory36 Bellatrix Corporate Presentation
    • APPENDIXFERRIER – MAIN FALHER CHANNEL Increased grainsize, porosity and silica rich. Wells test at >10 MMcfd. 25 High Rate Wells Drilled37 Bellatrix Corporate Presentation
    • APPENDIXFERRIER 13-1 SLICK WATER COMPLETION Bellatrix drilled the 13-1 Falher Hzl on an expiring section along the western edge of the main channel. A 40T slick water completion yielded IP7 of 11.5 MMcfd in tighter reservoir.38 Bellatrix Corporate Presentation
    • APPENDIXBELLATRIX CARDIUM ADVANCEMENTS • Q1 Results at 100%; 12 wells Drilled • At Buck Creek, we increased the OOIP potential; 2 wells tested the Mid-Lwr Cardium oil section, 300- 400 Boed IP7 • West Pembina: completed the Cardium with slick water, approx 600 Boed IP7 • At Brazeau, completed the latest cardium drill at 4-2 with 40T Slick water, >1100 Boed, IP5 • At Ferrier, BXE drilled three liquids rich Cardium gas wells on seismic defined structures, 70 Bbls/MMcf liquids yield. 6-10 MMcfd IP7 • Seismic and aeromag support enhanced fracturing; calcite lined fractures identified in drill cuttings.39 Bellatrix Corporate Presentation
    • APPENDIXBUCK CREEK CARDIUM HORIZONTAL PLAN • Existing core and log data support increased potential for Cardium OOIP stratigraphically below the earlier developed reservoir layer. • BXE drilled two successful Hzl oilwells into the Mid-Lwr Shoreface. • Excellent IP7 production rates of 300 Bopd ( 400 Boed) • Lower water cuts of approximately 30% vs 95% from the upper Cardium vertical producers.40 Bellatrix Corporate Presentation
    • APPENDIXBUCK CREEK 12-25 OFFSET TO 15-2541 Bellatrix Corporate Presentation
    • APPENDIXBXE BUCK CREEK CARDIUM42 Bellatrix Corporate Presentation
    • APPENDIXBRAZEAU 4-2 FLOW TEST BELLATRIX 4-2 CARDIUM HZL FLOW TEST – 40T SLICK WATER, 17 STAGE COMPLETION; AVERAGE APPROX 1100 BOED43 Bellatrix Corporate Presentation
    • 2300, 530 – 8th Avenue SWCalgary, Alberta Canada T2P 3S8Tel: (403) 266-8670Fax: (403) 264-8163www.bellatrixexploration.com44 Bellatrix Corporate Presentation