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CALGARY, Nov. 27 /CNW/ - Bellamont Exploration Ltd. ("Bellamont" or the "Corporation") (TSXV: BMX.A, BMX.B) is pleased to announce that it has closed its previously announced acquisition (the "Acquisition") of assets located in the central area of the Peace River Arch adjacent to the Corporation's Sinclair and Saddle Hills properties. Current production from the properties is approximately 210 boe/d; comprised of 164 bbl/d of high quality light gravity (40 degrees API) oil and 279 mcf/d of natural gas, 80% of which is operated. The purchase price for the assets was $17,150,000, comprised of $14,000,000 in cash and 5,080,645 Bellamont Class A shares issued to the vendor, Storm Exploration Inc., at a deemed price of $0.62 per share.
Bellamont is also pleased to announce the appointment of Mr. Stu Clark to its Board of Directors. Mr. Clark has a Bachelor of Commerce (Honours) from the University of Manitoba. Mr. Clark was the Vice President, Finance and Chief Financial Officer of Storm Energy Inc. from November 1998 to November 2001. From January 1986 to July 1998, Mr. Clark was employed by Pinnacle Resources Ltd. in positions of increasing responsibility, the last being Executive Vice President and Chief Financial Officer. Mr. Clark was also a director of Pinnacle from January 1986 to July 1998. Mr. Clark is currently a director of a number of private and publicly traded entities, including Storm Exploration Inc. and Rock Energy Inc.
As a result of the closing of the Acquisition, the subscription receipts ("Receipts") issued pursuant to Bellamont's previously announced bought deal financing have been deemed to be exchanged for Class A shares of Bellamont, without any further payment or further action by the holders of the Receipts.
The Acquisition is consistent with Bellamont's strategy 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. The Corporation has a strong, technically focused management team that internally generates and develops high quality, large resource based prospects. Bellamont trades on the TSX Venture Exchange under the symbols "BMX.A" and "BMX.B". The Corporation now has 81,861,426 Class A shares and 1,012,000 Class B shares outstanding.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Corporation's future plans and strategy.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Corporation, including, assumptions in respect of the Corporation's ability to carry out its business plan.
Although the Corporation 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 the Corporation 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, 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), risks surrounding the ability of the Corporation to access equity and debt markets and risks associated with commodity price and exchange rate fluctuations. Certain of these risks are set out in more detail in the Corporation's Annual Information Form for the year ended December 31, 2008 which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this document are made as of the date hereof and the Corporation 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE BELLAMONT EXPLORATION LTD.
For further information: For further information: Bellamont Exploration Ltd., Suite 200, 1324 - 17 th Avenue S.W.,Calgary, Alberta, T2T 5S8, Telephone: (403) 802-6840, Fax: (403) 802-1315, Steve Moran, President and Chief Executive Officer, www.bellamont.com