Calgary-based Bellatrix Exploration Ltd. said its proved plus probable (2P) reserves grew 18% to 250 million boe at the end of 2014, as its annual production increased 74% -- from 8.0 million boe at the end of 2013 to 13.9 million boe.
In a statement Monday, the Canadian company said its 2P reserves had a net present value of future net revenue (NPVBT) of C$2.1 billion at the end of 2014. It said the amount was relatively unchanged from the end of 2013 "despite a material contraction in average near-term (2-year) natural gas and oil price forecasts used by independent reserve evaluators."
Bellatrix said its proved reserves grew 30% year-over-year, to 161 million boe. The company's proved developed producing (PDP) reserves also grew -- by 37%, to 74 million boe -- with a 10% NPVBT value of C$932 million, or the equivalent of C$4.85/share.
According to Bellatrix, its 2P reserves were 32% weighted toward liquids, with 80 million bbl of crude oil and natural gas liquids (NGL) and 1.0 Tcf of natural gas. The 2P reserves were added at a finding, development and acquisition (FD&A) cost of C$12.13/boe, excluding the change in future development capital (FDC) requirements; with FDC included, FD&A came out to C$13.22/boe.
The company reported a net asset value of C$1.7 billion at the end of 2014 (C$9.01/share), "using a 10% per year discount to future net revenue adjusted for year-end net debt, seismic and land value," Bellatrix said Monday.
Bellatrix said it replaced 369% of total production in 2014, while its proved reserves life index improved by 16% to 10.6 years -- 13.3 years based on 20 reserves.
The reserves were independently evaluated by Sproule Associates Ltd.
Last December, Bellatrix announced it was slashing its capital expenditures (capex) by 25%, from C$400 million down to C$300 million (see Daily GPI, Dec. 29, 2014). The company lopped off another C$100 million in January, reducing capex to C$200 million. According to the company's most recent investor presentation, Bellatrix plans to spend C$120 million on drilling and completion costs and C$70 million on infrastructure. Its exploration unit is focused on oil and gas reserves in the Canadian provinces of Alberta, British Columbia and Saskatchewan.