Bellatrix Exploration Tags 2010 Capex

2010 Guidance

On January 12, 2010, Bellatrix announced a revised capital expenditure budget for 2010 of $75 million which was conditional on successful completion of its previously announced common share offering which closed on January 28, 2010. Bellatrix intends to use cash flow, the proceeds of the common share offering, and to the extent necessary, bank indebtedness to fund its 2010 capital expenditures budget.

The $75 million capital expenditures budget for 2010, represents an 88% increase over the Company's previously announced $40 million 2010 capital expenditures budget. This increase in 2010 capital spending will be primarily in the second half of 2010. Based on the timing of proposed expenditures, downtime for anticipated plant turnarounds and normal production declines, execution of the 2010 budget is anticipated to provide 2010 average daily production of approximately 8,500 boe/d and an exit rate of approximately 10,000 boe/d. The Company currently estimates field production at 7,648 boe/d. The 2010 capital budget is expected to be directed primarily towards drilling and completions activities in the Cardium and Notikewin resource plays.

As part of the 2010 capital expenditures budget the Corporation anticipates drilling 44 gross wells (31.6 net wells) primarily in the Pembina and Ferrier areas of Alberta, for an approximate cost of $57.0 million. In addition, the Corporation anticipates spending approximately $4.0 million on land and seismic acquisitions, $6.25 million on well site equipping and field facilities, $0.75 million on geological and geophysical expenditures, $3.0 million on optimization and recompletions and $4.0 million on non-operated joint venture billings.

In the first quarter of 2010, the Company plans to drill 8 gross (6.25 net) Cardium horizontal wells and 2 gross (1.85 net) Notikewin hortizontal wells. To date in January 2010, the Company has drilled two Cardium horizontal wells, at Norbuck and Pembina. The wells were drilled to depths of 2,625m and 2,656m respectively. Bellatrix has conducted a multi-staged completion on the first well at Pembina and is currently flowing back load oil. The Company expects to complete the second well next week. The Company is currently drilling a 2,800m Cardium horizontal well at Norbuck and a 3,452m Notikewin horizontal well at Ferrier.

2010 Commodity Price Risk Management Update

As an added layer of protection of its cash flow forecast the Company's 2010 commodity price risk management contracts provide price protection on approximately 54% of its estimated natural gas production for 2010 that is forward sold for an average of $6.56 CAD/mcf. This percentage hedged is based on an estimated 2010 average corporate natural gas production of 32 MMcf/d and a 39 MJ/m3 average heat content. In addition, 500 bbl/d of oil for 2010 is protected by way of a costless collar of $75.00 CAD x $101.15 CAD. Subsequent to December 31, 2009, the Company entered into commodity price risk management arrangements that are included in the aforementioned annual averages

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