The Transaction is the result of the Company's previously announced Court-approved sale and investment solicitation process (the " Strategic Process ") in its CCAA proceedings. Pursuant to the Strategic Process, the Company completed an extensive review of the potential transactions and alternatives that may be available to Bellatrix, with a view to maximizing value for the benefit of the Company and its stakeholders. After careful consideration of the results of the Strategic Process, the terms and conditions of the Transaction and the current circumstances facing the Company and the Alberta oil and gas market as a whole, and following consultation with certain key stakeholders, Bellatrix, with the assistance of its financial and legal advisors, has determined that the Transaction represents the best available alternative in the circumstances.