Bellamont Exploration Ltd. announces financial and operating results for the three month period ending June 30, 2008


    CALGARY, Aug. 27 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or
"Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to announce its financial
and operating results for the three months ended June 30, 2008. In addition,
the Corporation advises today that it has filed its financial statements and
related management's discussion and analysis ("MD&A") for the three months
ended June 30, 2008 with Canadian securities regulatory authorities on the
System for Electronic Document Analysis and Retrieval ("SEDAR"). Copies of
these documents may be accessed electronically on SEDAR at or at


    -   Drilled 1 well (1.0 net), resulting in 1 (1.0 net) producing oil
    -   During the quarter, had capital expenditures totaling $6.7 million
        comprised of $4.6 million in property acquisitions and $2.1 million
        related towards drilling, completions and equipping of new wells;
    -   Production averaged 372 Boe/d for the quarter in comparison to the
        second quarter 2007 production average of 69 Boe/d. Current
        production is now in excess of 600 Boe/d.
           -  Increased undeveloped land to 59,846 (36,318 net) in the
              quarter from 52,006 (32,182 net) gross undeveloped acres in the
              previous quarter;
    -   A working capital surplus of $11.4 million;
    -   Closed an acquisition for $4.6 million on May 13, 2008 of undeveloped
        lands and approximately 90 Boe/d of production in the immediate
        vicinity of its core Rycroft Montney oil discovery;
    -   Added Robert G. Peters, President of Black Diamond Cattle Company, to
        the Corporation's Board of Directors; who beneficially owns a total
        of 4,000,000 Class A shares of the Corporation, representing 11.67%
        of the total outstanding Class A shares;
    -   Announced on May 21, 2008 a bought deal financing for gross proceeds
        of $15.0 million;
    -   Increased its credit facility with a Canadian chartered bank to
        $7.25 million; and
    -   Increased its 2008 capital budget from $14.0 million to
        $24.0 million.


    In the second quarter of 2008, capital was directed primarily towards the
drilling of one new oil well in the in the Peace River Arch area of Alberta
and the equipping of that well plus two other wells drilled prior to the
quarter. The Corporation also completed an acquisition on May 13, 2008 in the
Rycroft area.
    In April of this year Bellamont announced two Montney oil pool
discoveries in the Rycroft and Grimshaw areas of Alberta. In Rycroft, the
Corporation now has two wells on production producing approximately 70 boe/d
(52 boe/d net) combined. Bellamont plans on drilling three more wells in the
Rycroft area in 2008 to delineate the pool. In Grimshaw, Bellamont is pleased
to report that the discovery well is back on production at approximately 30
Boe/d (30 Boe/d net) after being shut in awaiting regulatory approvals. As is
the case with Rycroft, Bellamont plans on drilling three additional
delineation wells at Grimshaw this year. Bellamont's current plan is to
delineate these two discoveries with vertical wells and continue to evaluate
the application of horizontal wells with multi-staged fracs.
    Bellamont has significant undeveloped land positions in both Rycroft and
Grimshaw. In Rycroft, the Corporation has an average 66% working interest in
fifteen, largely contiguous, sections (9,600 acres) of Montney rights in the
immediate vicinity of the discovery. In addition, the Corporation has secured
options to earn an additional 46% working interest in two of these sections.
In Grimshaw, Bellamont owns an average working interest of 79% in seven
sections (4,480 acres), which includes a 100% working interest in the entire
section (640 acres) in which the discovery well is located. In addition, the
Corporation has secured a farmin agreement granting Bellamont the right to
earn an additional 70% working interest in three sections (1,920 acres)
located directly adjacent to a section containing the discovery well.

    Second Quarter 2008 Financial Highlights
    Certain selected financial and operational information for the quarter
ended June 30, 2008 and 2007 comparatives are set out below and should be read
in conjunction with Bellamont's financial statements and MD&A.

                                Three Months Ended          Six Months Ended
                                           June 30                   June 30
                                 2008         2007         2008         2007
    Financial ($)
    Petroleum and natural
     gas sales                 2,783,742     319,958   4,748,969     443,473
    Funds generated (used)
     in operations(1)          1,250,866    (245,371)  2,028,939    (488,602)
      Per share basic and
       diluted                      0.03       (0.01)       0.05       (0.02)
    Net Earnings (Loss) and
     Comprehensive Income
     (Loss)                      119,841    (334,156)   (165,763)   (637,151)
      Per share basic and
       diluted                         -       (0.01)          -       (0.03)
    Capital expenditures       6,630,000   1,448,000  11,507,000   5,995,000
    Net working capital
     surplus                  11,376,000   9,952,000  11,376,000   9,952,000
      Liquids (Bbls per day)         125          34         118          19
      Natural gas
       (Mcf per day)               1,484         208       1,434         176
      Barrels of oil
       equivalent (Boe per
       day, 6:1)                     372          69         357          49
    Average realized price
      Crude oil ($ per Bbl)       120.00       60.39      107.60       60.80
      Natural gas ($ per Mcf)      10.56        6.94        9.39        7.19
      Natural gas liquids
       ($ per Bbl)                114.76       59.33      103.10       50.44
      Barrels of oil
       equivalent ($ per Boe,
       6:1)                        82.21       50.95       73.14       50.08
    Netback per Boe (6:1) ($)
      Petroleum and natural
       gas sales                   82.21       50.95       73.14       50.08
      Royalties                   (11.70)      (9.09)     (10.87)      (9.43)
      Operating expenses          (15.89)     (31.68)     (16.28)     (35.95)
      Transportation expenses      (2.11)      (4.32)      (2.44)      (3.30)
    Operating Netback              52.51        5.86       43.55        1.40

    Current undeveloped land
      Gross acres                                                     59,846
      Net acres                                                       36,318
      Average working interest                                            61%

    Common Shares
    Shares outstanding, end
     of period
      Class A Shares          44,637,449  21,349,821  43,637,449  21,349,821
      Class B Shares           1,012,000   1,012,000   1,012,000   1,012,000
    Weighted average shares
      Basic Shares
       Outstanding(2)         42,808,603  24,413,474  41,330,746  22,664,947
      Diluted Shares
       Outstanding(2)         43,561,043  24,936,807  41,953,240  23,129,977
    (1) Management uses funds used in operations to analyze operating
        performance and leverage. Funds used in operations as presented does
        not have any standardized meaning prescribed by Canadian GAAP and
        therefore it may not be comparable with the calculation of similar
        measures for other entities.
    (2) For the period ended June 30, 2008 the Class B shares are converted
        at the period ending trading price on the TSX Venture Exchange Class
        A share price of $1.82 and added to the Class A shares to calculate
        basic shares and the diluted shares outstanding.

    Bellamont is currently producing in excess of 600 Boe/d, comprised of
approximately 40% oil and natural gas liquids. In the second half of 2008, the
Corporation plans on drilling 12 additional wells (7.73 net), which it expects
to fund from projected cash flow and existing working capital Bellamont has
the ability to accelerate the drilling of additional wells from its 70 gross
well drilling inventory by utilizing the Corporation's undrawn $7.25 million
line of credit. The Corporation's year-end production guidance of 900 boe/d
remains unchanged.


    This press release may contain forward-looking statements including
expectations of future production, cash flow and earnings. More particularly,
this press release contains statements concerning Bellamont's future
production estimates, expansion of oil and gas property interests, exploration
and development drilling, payout estimates, capital expenditures, number and
drilling locations to be drilled in 2008 and facilities upgrades. These
statements are based on current expectations that involve a number of risks
and uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks associated
with the oil and gas industry (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, price and exchange rate fluctuation and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. Additional
information on these and other factors that could affect Bellamont's
operations or financial results are included in Bellamont's reports on file
with Canadian securities regulatory authorities.
    The forward-looking statements or information contained in this news
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. Not for
    distribution to U.S. newswire services or for dissemination in the United
    States. Any failure to comply with this restriction may constitute a
    violation of U.S. securities law.

    %SEDAR: 00024373E

For further information:

For further information: Bellamont Exploration Ltd., Suite 200,
1324-17th Avenue S.W., Calgary, Alberta, T2T 5S8, Steve Moran, President and
Chief Executive Officer, (403) 802-1355; or Danny Geremia, Vice President and
Chief Financial Officer, (403) 802-0160, Email:,

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