Bellatrix Exploration Ltd. (TO: BXE) issued a notice of redemption to holders of its currently outstanding $55 million 4.75% convertible unsecured subordinated debentures due 2015.

The redemption date of the debentures will be Oct. 21. The debentures are redeemable for an amount equal to principal amount of the debentures plus accrued unpaid interest up to, but excluding, the redemption date.

Pursuant to the terms of the debentures, the company has elected to satisfy its obligation to pay all of the redemption price by issuing and delivering to the holders that number of common shares of the company obtained by dividing the redemption price by 95% of the current market price of the common shares on the redemption date. For this purpose, the current market price will be calculated based on the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on the fifth trading day preceding the redemption date. The company anticipates announcing the current market price to be used to calculate the number of common shares that each holder of debentures will receive on the redemption of the debentures on or about Oct. 15.

Prior to the redemption of the debentures, each holder will have the right to convert their debentures into common shares at a conversion price of $5.60 per common share at any time on or prior to Oct. 18. A holder electing to convert the principal amount of their debentures will receive 178 common shares for each $1,000 principal amount of debentures converted plus a cash payment for accrued unpaid interest up to, but excluding, the conversion date. No fractional shares will be issued on redemption or conversion but, in lieu thereof, the company shall pay the cash equivalent thereof determined on the basis of the current market price of the common shares on the redemption date or conversion date, as applicable.

Bellatrix Exploration Ltd. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. The company is headquartered in Calgary.