Bellatrix Exploration Ltd. announced the start-up of the Phase 2 expansion project at the Bellatrix O'Chiese Nees-Ohpawganu'ck deep-cut gas plant at Alder Flats (the Alder Flats Plant"). The Phase 2 expansion project of the Alder Flats Plant was fully commissioned mid-March and began selling volumes March 19, 2018. The project more than doubles throughput capacity at the Alder Flats Plant to 230 MMcf/d (from 110 MMcf/d), was brought on-stream safely ahead of schedule, and was delivered approximately 5% under budget. The Alder Flats Plant has successfully tested inlet volumes of approximately 210 MMcf/d (combined between both Phase 1 and 2), and is performing in-line with expectations. The turbo expander is operational on Phase 2, which was designed with a colder process, thereby enhancing natural gas liquid (“NGL”) extraction capabilities. Combined NGL recovery at the Alder Flats Plant increases to approximately 55 to 60 bbl/MMcf, from approximately 45 bbl/MMcf under Phase 1; this is in addition to an expected condensate yield of an additional 10 bbl/MMcf. Completion of Phase 2 adds an incremental 30 MMcf/d ownership capacity net to Bellatrix's 25% working interest. Bellatrix has redirected approximately 65 MMcf/d of gross natural gas volumes from third party processing plants to theAlder Flats Plant to optimally process under its ownership and processing volume commitments.

The company revised production and capital expenditure guidance for the year 2018. The company now expected production (boe/d) of 34,000 – 35,500 compared to previous guidance of 35,000 – 37,000. The company now expected net capital expenditures guidance of $55,000,000 – $65,000,000 compared to previous guidance $65,000,000 – $80,000,000.