Bellamont Exploration Ltd. announces second quarter results



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

    CALGARY, Aug. 29 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or
"Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to reports it second quarter
financial and operation results.

    
    SECOND QUARTER 2007 OPERATIONAL AND CORPORATE HIGHLIGHTS

    -   Closed a $10.0 million bought deal financing on May 29, 2007
    -   Exited Q2 with $9.95 million working capital and no bank debt
    -   Spent approximately $1.5 million in Q2, predominantly on completion
        and equipping operations in the Peace River Arch Area
    -   Averaged 69 boe/d production in Q2 and exited the quarter with
        102 boe/d
    -   In July of 2007:
        -  drilled an exploratory natural gas well in the Whitelaw Area of
           the Peace River Arch that drill stem tested six separate zones
           cumulatively in excess of 5.8 mmcf/d and discovered two new gas
           pools; and
        -  drilled and cased an exploratory potential natural gas well in
           Central Alberta, which is to be completed in September 2007
    -   Achieved an additional productive capacity of approximately 200 boe/d
    

    In the second quarter, due to spring break-up and industry conditions,
Bellamont reduced capital expenditures to evaluate future development plans
and acquisitions, leaving Bellamont with $9.95 million working capital at the
end of the Q2 2007.
    In the third quarter to date the Corporation has drilled 3 (1.85 net)
wells, resulting 1 dually completed gas well (0.45 net), 1 potential gas well
awaiting completion (0.40 net) and 1 (1 net) dry hole.
    The highlight of the newly drilled wells is an exploratory gas well (45%
working interest net) in the Whitelaw Area of the Peace River Arch that drill
stem tested a total of 5.8 mmcf/d from six separate zones and in addition,
encountered several other hydrocarbon bearing formations. The Corporation has
dually completed two zones in the well. The first zone completed, which was
not one of the six zones drill stem tested, production tested at a rate of
approximately 1.0 mmcf/d at 3907 kPa tubing head pressure. The second zone
production tested at a rate of approximately 0.75 mmcf/d at 1524 kPa tubing
head pressure. Both of the completed formations are new pool discoveries.
Based on currently available processing capacity in the area, the Corporation
expects to bring this well on production in late Q3 or early Q4 at a
restricted initial rate of approximately 750 mcf/d, resulting in a net
50 boe/d to Bellamont. Based on production tests, the Corporation expects this
well will have significant additional deliverability should additional
processing capacity become available. The Corporation is currently
investigating various options in order to maximize the production rate from
this well. In addition, when additional processing capacity becomes available,
the company will likely drill a twin to this well, in order to produce the
other productive formations encountered.

    The potential gas well awaiting completion was an exploration well
located in Central Alberta, approximately 100 km northwest of Edmonton. This
well encountered 5 metres of potential gas pay in the Glauconite Formation and
appears to be a new pool discovery. Bellamont has a 40.0% working interest in
this well. This well is expected to be completed and production tested in
September, 2007, at which time the Corporation will have a better
understanding of the well's productive capacity. Based on analogs of
Glauconitic natural gas pools in the in the immediate vicinity, Bellamont is
encouraged with the results to date.

    The Corporation has filed its unaudited financial statements and related
management's discussion and analysis ("MD&A") for the quarter ended June 30,
2007, 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 www.sedar.com or at
www.bellamont.com. Certain selected financial and operational information for
the quarter ended June 30, 2007 and 2006 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

                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    Financial ($)
    -------------------------------------------------------------------------
    Petroleum and natural
     gas sales                       319,958     51,125    443,473    60,243
    Funds used in operations(1)     (245,371)    (9,029)  (488,602)  (30,267)
      Per share basic                  (0.01)     (0.01)     (0.02)    (0.02)
      Per share diluted                (0.01)     (0.01)     (0.02)    (0.02)
    Net Loss and Comprehensive
     Loss                           (334,156)   (31,517)  (637,151)  (58,360)
      Per share basic                  (0.01)     (0.02)     (0.03)    (0.03)
      Per share diluted                (0.01)     (0.02)     (0.03)    (0.03)
    Capital expenditures           1,448,142    196,624  5,995,995   205,645
    Net working capital surplus    9,950,924     43,742  9,950,924    43,742
    -------------------------------------------------------------------------
    Operating
    -------------------------------------------------------------------------
    Production
      Crude oil (Bbls per day)            34          -         19         -
      Natural gas (Mcf per day)          208         96        176        27
      Barrels of oil equivalent
       (Boe per day, 6:1)                 69         16         49         5
    Average realized price
      Crude oil ($ per Bbl)            60.39          -      60.80         -
      Natural gas ($ per Mcf)           6.94       5.88       7.19      5.99
      Natural gas liquids ($ per Bbl)  59.33          -      50.44         -
      Barrels of oil equivalent
       ($ per Boe, 6:1)                50.95      35.34      50.08     36.06
    Netback per Boe (6:1) ($)
      Petroleum and natural gas sales  50.95      35.34      50.08     36.06
      Royalties                        (9.09)     (7.62)     (9.43)    (8.32)
      Operating expenses              (31.68)    (10.33)    (35.95)   (12.12)
      Transportation expenses          (4.32)     (1.29)     (3.30)    (1.21)
    -------------------------------------------------------------------------
    Operating Netback                   5.86      16.10       1.40     14.41
    -------------------------------------------------------------------------

    Undeveloped land holdings
      Gross acres                     18,796      7,361     18,796     7,361
      Net acres                       16,892      4,992     16,892     4,992
      Average working interest          90.0%      67.8%      90.0%     67.8%

    -------------------------------------------------------------------------
    Common Shares
    -------------------------------------------------------------------------
    Shares outstanding, end of
     period
      Class A Shares              21,349,821  1,800,000 21,349,821 1,800,000
      Class B Shares               1,012,000          -  1,012,000         -
    Weighted average shares
      Basic Shares
       Outstanding(2)             24,413,474  1,800,000 22,664,947 1,800,000
      Diluted Shares
       Outstanding(2)             24,936,807  1,800,000 23,129,977 1,800,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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, 2007 the Class B shares are converted
        at the quarter-end Class A share price of $1.06 and added to the
        Class A shares to calculate basic shares and the diluted shares
        outstanding.
    

    OUTLOOK

    The Corporation enters the remainder of 2007 with a healthy balance
sheet, exploration success with significant volumes to be placed on production
and a balanced risk/reward prospect inventory. The Corporation has been
actively reviewing acquisition opportunities and will continue to do so. The
Corporation has been patient with its working capital surplus and will be
opportunistic, yet disciplined, in its acquisition approach. We intend to
focus on transactions that offer growth potential and are accretive on a per
share basis on cash flow, production and reserves.
    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 presently has 21,349,821 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.
    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 -
7th 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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