Bellatrix Exploration has signed an agreement to sell a 35% stake in the Bellatrix O'Chiese Nees-Ohpawganu'ck deep-cut gas plant and the associated gathering pipelines at Alder Flats in Alberta, Canada, to Keyera Partnership for C$112.5m ($86m).
Under the terms of the deal, Bellatrix and Keyera will also sign an agreement whereby the former will have access to the purchased capacity for ten years.
At present, Bellatrix owns a 60% stake in the plant, which has a design inlet capacity of 230 million cubic feet per day (mmcf/d).
Bellatrix will continue to operate the plant with 25% interest upon completion of the transaction.
The company will have the option to reacquire a 5% stake in the plant near the end of the final year of the agreement for $8m.
Keyera is one of the current co-owners of the Alder Flats plant, which is being developed in phases.
The first phase of the project was commissioned in May last year while the second phase, which is expected to have a design inlet capacity of 120 million ft³ per day, is under construction and is planned to be completed in the first half of 2018.
Bellatrix is responsible for constructing phase II and funding 60% of the costs.
Keyera president and CEO David Smith said: "The acquisition is expected to be immediately accretive to Keyera's distributable cash flow per share, which creates value for our shareholders.
"With strong geology supporting producer activity in the area, the Alder Flats Plant is expected to remain a core gathering and processing asset for Keyera and a cost-effective, networked processing solution for area producers over the long term."
The transaction, which is subject to customary closing conditions, is expected to be completed in August this year.