Bellamont Exploration Ltd. announces core property acquisition and farmin



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    CALGARY, Sept. 10 /CNW/ - Bellamont Exploration Ltd. ("Bellamont" or the
"Company") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to announce that the Company
has executed an agreement with an intermediate oil and gas producer (the
"Vendor") to acquire high quality light oil and natural gas assets located in
the Company's primary operating area of northwest Alberta and northeast
British Columbia for a total consideration of $3.54 million comprised of
$2 million cash and 1,538,461 Bellamont class "A" common shares with a deemed
price of $1.00 per share (the "Acquisition"). The Acquisition is expected to
close on or before October 22, 2007.
    In addition, Bellamont has executed a Farm-in agreement (the "Farm-in")
with the Vendor pursuant to which the Company has agreed to participate in an
82 square mile 3D Seismic program for a total of $3.5 million and has
committed to drill a minimum of one exploration well on or before June 1,
2008. The Farm-in gives Bellamont access to over 178,000 gross acres
(279 gross sections) of land located in a 12 square township area in southeast
Saskatchewan.

    
    The Acquisition is characterized by the following attributes:

    -   Current production of approximately 150 boe/d comprised 77% of
        natural gas and 23% light sweet oil (38- API);
    -   78% of the production is operated;
    -   Over 5 net lower risk development locations, 3.5 of which target
        light sweet oil;
    -   Reserves of approximately 325 mboe of total proven and 436 mboe of
        proven plus probable, based on the Vendor's independent engineering
        reports dated December 31, 2006(*);
    -   Reserve life index of 7.3 years proven plus probable and 5.3 proven;
    -   Adds a second Doe Creek Oil pool to the Company with estimated oil in
        place of 23 millions barrels, 2.8 million of which are estimated to
        be located on lands being acquired; and
    -   Includes operatorship of two key facilities: 1) an Oil battery in the
        Gold Creek Area of Alberta and 2) a compressor station in the Clarke
        Lake Area of British Columbia.

    (*) Pursuant to Bellamont's management estimates as of July 1, 2007, the
        effective date of the Acquisition Agreement, the proven and proven
        plus probable reserves remaining were approximately 289 mboe and 400
        mboe respectively.

    The Acquisition is accretive to Bellamont on a reserves, production and
cash flow per share basis and provides Bellamont with a strong low risk
production base. Based on Bellamont's management estimates, the acquisition
metrics are as follows:

    1.  Cash Flow Multiple:

        -  Approximately 3 times (based on 150 boe/d and $6.00/GJ AECO and
           $65.00 US WTI and $0.95 Cdn $/US$ exchange rate)

    2.  Production:

        -  $23,600 per producing boe (based on 150 boe/d)

    3. Reserves:

        -  $12.24 proven boe
        -  $8.85 proven plus probable

    In accordance with the terms of the Farm-in, the Company will:

    -   Participate for a total capital commitment of $3.5 million in an 82
        square mile three dimensional ("3D") seismic program covering the
        Vendor's lands, anticipated to commence in the third quarter of 2007,
        and in the process, reducing the Company's 2007 CEE flow through
        commitment by a like amount;
    -   Earn an interest in approximately 22,165 gross acres of undeveloped
        lands;
    -   Have access to review the Vendor's entire existing inventory of
        seismic located in the 12 square township farm-in block, which
        includes approximately 80 square miles of 3D seismic and 230 miles of
        2D data;
    -   Have the right to drill on approximately 279 gross sections (178,000
        gross acres) of Farm-in lands in which it can locate its commitment
        well, plus any additional lands in the 12 square township block the
        Vendor acquires during the term of the Farm-in agreement;
    -   Spud a commitment well by June 1, 2008 to evaluate down to the Red
        River formation;
    -   Earn eight gross quarter sections of farm-in land (1280 acres) per
        well drilled;
    -   Have 180 day rolling options to drill additional wells to earn an
        interest in additional farm-in lands on like terms as the commitment
        well; and
    

    Bellamont's management believes that the assets being acquired pursuant
to the Acquisition Agreement are a strategic fit with the Company's current
land holdings and activities in its northwest Peace River Arch core area. The
key assets in the transaction are operated assets located in the Gold Creek
area of Alberta (Doe Creek formation oil and associated natural gas) and
Clarke Lake area of British Columbia (Slave Point formation natural gas). Both
of these properties fit with the Company's strategy of acquiring operated
assets that have significant amount of hydrocarbons in place and long reserve
lives, with opportunities to increase production and enhance recovery factors
via lower risk development drilling.
    The Farm-in represents a unique opportunity for an emerging oil and gas
company such as Bellamont to gain access to an expansive, largely contiguous,
block of lands and a potentially significant light oil play. The primary
prospect being pursued by the Company will be the Red River formation, with
the Winnipegosis and Birdbear formations as secondary targets. Numerous Red
River oil pools are located in the general vicinity of the farm-in lands, with
pool sizes ranging up to 1.7 million barrels recovered to date and initial
rates up to 800 bopd per individual well of light 33-API oil with associated
sweet gas. The Red River formation is seismically definable utilizing 3D
seismic technology. The new 82 square mile seismic program will cover lands
that have, for the most part, never been imaged with 3D seismic. Given the
size of the 279 gross sections of lands available for earning by the Company
and the scope of the combined 162 square miles of 3D seismic coverage the
Company will have access to, Bellamont is optimistic this transaction will
generate multiple drilling opportunities.

    
    Upon closing of the Acquisition and the Farm-in, Bellamont will have:

    -   Production of approximately 250 boe/d comprised 34% of high quality
        light oil and 66 % of natural gas;
    -   Additional productive capacity of approximately 200 boe/d, as
        described in the Company's August 29, 2007 press release;
    -   A strong balance sheet with approximately $2.0 million dollars of
        working capital plus an estimated credit facility capacity of
        $3.5 million dollars;
    -   A remaining 2007 CEE commitment of approximately $1.8 million
        following completion of the seismic program;
    -   An average working interest of 57% in an undeveloped land inventory
        of 52,500 acres with access to an additional 279,000 gross acres; and
    -   A balanced risk/reward prospect inventory over 40 net locations to
        grow production and reserves.
    -   22,888,282 class A common shares and 1,012,000 class B common shares
        outstanding
    

    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".

    FORWARD LOOKING STATEMENTS

    This press release contains forward-looking statements which include, but
are not limited to, reference to future capital expenditures, drilling plans,
seismic activity, timing of completing the Acquisition, current and future oil
and gas production levels and availability of credit facility.
    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.
    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 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; Steve Moran, President and Chief Executive Officer or Danny
Geremia, Vice President Finance and Chief Financial Officer;
www.bellamont.com

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BELLAMONT EXPLORATION LTD.

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