Bellatrix to sell non-core assets for C$47 million


CALGARY, Alberta -- Bellatrix Exploration has entered into an agreement with InPlay Oil Corp. to sell certain non-core Cardium focused assets in the greater Pembina area of Alberta for a total consideration of C$47 million ($35.6 million). The consideration is comprised of C$42 million in cash, and 16,666,666 shares of InPlay with a deemed value of C$5 million.

InPlay is currently a private E&P company, but concurrently with the announcement of the Pembina asset sale, it has announced a proposed reverse takeover transaction, which, among other things, would provide for a public listing for its shares on the Toronto Stock Exchange.

The Pembina asset sale consists of Cardium oil weighted production of approximately 930 boed and formation rights in the Cardium only. As part of the transaction, Bellatrix has retained formation rights above and below the Cardium on the Pembina acreage, including the Notikewin, Falher and Wilrich members of the Spirit River formation.

Cash proceeds from the Pembina asset sale are expected to be used to repay existing bank indebtedness.

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