Keyera to Acquire Additional Ownership Interest in the Alder Flats Gas Plant

Keyera Corp. has agreed with Bellatrix Exploration Ltd. to acquire an additional 35% ownership interest in the Alder Flats Plant and associated gathering pipelines. The total acquisition cost is $112.5 million, which includes the additional working interest in the facilities, a 10-year take-or-pay commitment, an area dedication agreement and a prepayment of 35% of the estimated future construction costs of Phase 2 of the Alder Flats Plant. The acquisition is subject to typical closing conditions and is expected to close in August.

Upon closing, Keyera will own 70% of the facilities. Currently, the Alder Flats Plant, which is located in west central Alberta, has a licensed capacity of 110 million cubic feet per day. Phase 2 is expected to have a design inlet capacity of 120 million cubic feet per day and a target on stream date in the first half of 2018. Bellatrix is responsible for constructing Phase 2 and funding 60% of the costs.

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