Bellamont Exploration Ltd. announces $7 million 2009 budget and guidance



    
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    CALGARY, Jan. 15 /CNW/ - Bellamont Exploration Ltd. ("Bellamont" or "the
Company") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to announce its board of
directors has approved a 2009 capital budget of $7 million. The Company plans
to maintain its strong balance sheet by funding the 2009 capital program out
of its existing working capital and projected 2009 cash flow. As of December
31, 2008, the Company had an estimated working capital surplus in excess of $4
million.
    Bellamont's strategy is to build a low risk reserve, production and cash
flow base through acquiring, developing and exploring primarily in the Peace
River Arch Area of Alberta. Bellamont has a strong technically focused
management team that internally generates and develops high quality large
resource based prospects. The Company has compiled an undeveloped land
inventory of 67,479 gross acres (39,797 net), of which 45,916 gross acres
(29,004 net) is located in the Peace River Arch area of Alberta.
    Bellamont's 2009 capital program is heavily weighted to development
projects in the Peace River Arch of Alberta. The Company expects to drill or
recomplete 10 (6.3 net) wells and equip one well that was recompleted in 2008.
The activity will be directed primarily towards lower risk follow-up wells to
the Company's successful 2007 and 2008 discoveries. Two thirds of the capital
has been scheduled for the second half of the year, taking advantage of
anticipated lower service costs.
    The Company's current production is approximately 650 boe per day with
100 boe per day behind pipe (~76% natural gas and 24% light oil). Bellamont
expects to bring on a majority of the behind pipe production before spring
break-up. The Company expects to produce an average of approximately 750 boe
per day over the course of the year and exit greater than 800 boe per day.
    Bellamont's 2009 budget maintains a strong balance sheet and unutilized
line of credit of $7.25 million. With only one third of the capital budget
scheduled for the first half of the year, Bellamont will have the financial
flexibility to pursue acquisition and exploration opportunities. Bellamont
intends to maintain its discipline and concentrate on strategic opportunities
that are accretive on cash flow, production and reserves on a per share basis,
while maintaining a strong balance sheet.

    Bellamont is an emerging oil and gas company focused on the acquisition,
exploration, development and production of oil and natural gas in western
Canada and trades on the TSX Venture Exchange under the symbols "BMX.A" and
"BMX.B". The Corporation now has 44,649,115 Class A shares and 1,012,000 Class
B shares outstanding.

    This document contains forward-looking statements. More particularly,
this document contains statements concerning the Corporation's future
production levels and planned exploration, development and acquisition
activities.
    The forward-looking statements are based on certain key expectations and
assumptions made by Bellamont, including expectations and assumptions
concerning prevailing commodity prices and exchange rates, availability and
cost of labour and services, the timing of receipt of regulatory approvals,
the performance of existing wells, the success obtained in drilling new wells,
the performance of new wells and the sufficiency of budgeted capital
expenditures in carrying out the Corporation's planned activities. The
combined test rates of the Company's 2007 new pool discoveries are not
necessarily indicative of the ultimate production rates and will be lower in
commercial development.
    Although Bellamont believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because Bellamont can
give no assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, the risks associated with the
oil and gas industry in general (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty
of reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
commodity price and exchange rate fluctuations and uncertainties resulting
from potential delays or changes in plans with respect to exploration or
development projects or capital expenditures. These risks are set out in more
detail in the Corporation's Annual Information Form which has been filed on
SEDAR and can be accessed at www.sedar.com.
    The forward-looking statements contained in this press release are made
as of the date hereof and Bellamont undertakes no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.
    Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic
feet of natural gas. Boe's may be misleading, particularly if used in
isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas
is based on an energy equivalent conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

    %SEDAR: 00024373E




For further information:

For further information: Bellamont Exploration Ltd., Suite 200, 1324 -
17th Avenue S.W., Calgary, Alberta, T2T 5S8, Telephone: (403) 802-6840, Fax:
(403) 802-1315, www.bellamont.com, Steve Moran, President and CEO, or Danny
Geremia, Vice President Finance and CFO

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BELLAMONT EXPLORATION LTD.

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