Bellamont Exploration Ltd. Announces Successful Extension of its Grimshaw Montney Oil Discovery, Strategic Peace River Arch Farmin and Addition of Mr. Greg Bay to its Board of Directors



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

    CALGARY, Aug. 13 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or
"Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to announce the following:

    
    Successful Extension of Grimshaw Oil Pool Discovery
    ---------------------------------------------------
    

    Bellamont is pleased to report that a second well into its Montney oil
discovery in Grimshaw, located at 4-29-83-23W5M (the "4-29"), has been
successfully drilled horizontally and completed via 10 stage hydraulic
fracture stimulations. Bellamont owns a 100% working interest in the 4-29
before payout and 70% after payout. The 4-29 production tested at 400 bbl/d of
30 degree API oil over the last 24 hours of a 56 hour continuous swab test.
The Corporation expects to place the well on production in the fourth quarter
at an initial rate of 150 bbl/d.
    The 4-29 was vertically drilled at a surface location at 14-29-83-23W5M
to a depth of 905 metres, logged, then plugged back and drilled out 928 metres
horizontally. Open hole logs from the vertical portion of the well encountered
14 metres of gross pay in the Montney, which is virtually identical to
Bellamont's discovery well located approximately one mile away at
7-30-83-23W5M. The horizontal leg of the well encountered the Montney sand
throughout the entire 928 metre length. These results have further reinforced
Bellamont's interpretation of an oil pool covering multiple sections of lands,
all of which are owned and operated by Bellamont. Bellamont owns an average
76.0% working interest in 10 contiguous sections (6400 acres) of lands in the
Grimshaw area.
    The Grimshaw area offers Bellamont significant oil upside at excellent
economics. Bellamont lands have the potential for drilling an additional 20
gross (15.2 net) horizontal wells, based on 4 wells per section. Bellamont
expects the cost to drill, complete and equip horizontal multi staged fraced
development wells will average approximately $1.800 million, which will result
in finding and development costs below $10.00/boe, on stream costs of $12,000
boe/d and a recycle ratio in excess of 3 times. These metrics will be further
enhanced by taking into account the drilling royalty credit announced by the
Alberta Government, which provides for a corporate royalty credit equivalent
to $200/metre drilled, for all wells drilled before April 1, 2011. Such wells
will also qualify for the Alberta Government's royalty reduction program,
which provides for a 5.0% maximum royalty for the first 12 months of
production, or 50 thousand barrels of oil production, whichever is reached
first. In the future, Bellamont should be able to realize capital efficiencies
by utilizing centralized drilling pads and facilities, further enhancing the
economics of the play.

    
    Valhalla Area Farmin
    --------------------
    

    The Valhalla area is a new core area that Bellamont began assembling a
land position in late 2008. The Corporation's primary focus has been natural
gas in the Falher formation, which is a medium depth (~ 1500 metres)
Cretaceous sand, though the area offers potential in numerous other horizons,
including the Triassic. From an original acquisition of 50 boe/d from a single
zone well in late 2008, the Corporation has grown production in Valhalla to
215 boed (100% natural gas) from two wells and four producing intervals. In
addition, Bellamont has production tested 1.00 mmcf/d from a third well, which
it expects to tie-in during the fourth quarter and produce at a stabilized
rate of approximately 70 boe/d. All of the incremental volumes were obtained
via re-entries of existing cased well bores and as such, have resulted in
excellent on stream costs of approximately $8,500 boe/d.
    Currently, the Corporation has an average working interest of 97% in 13
gross sections (12.6 net). The Corporation has mapped gas in place in the
Falher Formation on the majority of its lands, all based on bypassed pay in
existing well bores. Bellamont's production is coming from two distinct sands
in the Falher, one of which was a new pool discovery by the Corporation.
Bellamont believes that up to five separate Falher sands are prospective and
expects the Valhalla area to yield a significant amount of low risk production
and reserve additions for the foreseeable future.
    Bellamont has recently entered into multiple agreements (the "Farmin
Agreements") which will provide the opportunity for the Corporation to
significantly expand its land footprint in the Valhalla area on a cost
effective basis. Key attributes of the Farmin Agreements are as follows:

    
    -   Access to earn up to 18 gross sections (9.2 net) of land located in
        close proximity to Bellamont's existing land base;
    -   Commitment to re-enter and complete 3 suspended wells (1.75 net) by
        November 1, 2009;
    -   Earning is 100% of the Farmor's interest, subject to a
        non-convertible overriding royalty; one section per recompletion, two
        sections per vertical drill and four sections per horizontal drill;
        and
    -   180 day rolling options to elect and drill wells to continue to earn
        further lands.
    

    The wells targeted for the re-entry pursuant to the Farmin agreements,
allow Bellamont, at minimal cost, to significantly extend the established pool
boundaries and test new Falher pools/sands. Furthermore, success will set up
future drilling locations, timed to when the Corporation expects to be an
improved price environment for natural gas. All of the wells to be re-entered
and/or drilled will qualify for the new well Alberta Government's royalty
reduction program, which provides for a 5.0% maximum royalty for the first 12
months of production, or 500 million cubic feet of gas production, whichever
is reached first.

    
    Greg Bay to Join Board of Directors
    -----------------------------------
    

    Bellamont is pleased to welcome Mr. Greg Bay to its board of directors.
Mr. Bay is a founding partner, President and CEO of Cypress Capital Management
Ltd., located in Vancouver, British Columbia. Established in 1998 and acquired
by AGF Management in 2004, Cypress Capital manages more than $4.0 billion in
assets. Mr. Bay is a portfolio manager for various private client accounts and
several specialized institutional portfolios including the Enervest
Diversified Income Trust. Mr. Bay brings with him over 25 years of experience
in the investment industry with emphasis on the oil and gas sector. We look
forward to working with Mr. Bay and anticipate his skill set and experience
will be a valuable addition to the Corporation. As a result of his joining
Bellamont's board of directors, Mr. Bay has been granted 100,000 stock options
at a price of $0.47 per Class A share.
    The Corporation's balance sheet remains strong with an estimated $0.850
million of positive working capital as of June 30, 2009 and a $7.25 million
unutilized line of credit that has recently been renewed with Bellamont's
lender. As a result, Bellamont has the financial flexibility to expand its
budget to pursue additional low risk development opportunities on its land
base. For more information regarding the company, please refer to the new
corporate presentation on Bellamont's webpage at www.bellamont.com.

    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 has 44,780,781 Class A shares and 1,012,000 Class B
shares outstanding.
    Bellamont trades on the TSX Venture Exchange under the symbols "BMX.A"
and "BMX.B".

    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.
    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.

    Oil and Gas Advisory

    This press release contains disclosure expressed as "Boe/d". All oil and
natural gas equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil. Equivalency measures
may be misleading, particularly if used in isolation. A conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the well head.

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





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

Organization Profile

BELLAMONT EXPLORATION LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890