/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, Oct. 8 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or
"Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to announce that it has
closed an agreement to acquire land and production of 50 boe/d in its core
area of the Peace River Arch region of Alberta for $2.5 million.
- current daily production of approximately 50 boe/d from one well
(100% natural gas, 100% working interest);
- Low operating costs of $4.18 per boe;
- Four and one half contiguous sections (2,880 acres) at 100% working
- All lands are prospective for and offset significant Cretaceous and
- A minimum of five development Cretaceous drilling locations with
potential for down spacing to drill multiple infill wells;
- One exploratory drill targeting the Upper Montney Formation based on
by-passed pay; and
- The acquisition is effective August 1, 2008.
Post closing, Bellamont's production will be 600 boe/d with an additional
100 boe/d behind pipe waiting on current tie-in operations and a working
capital surplus in excess of $7 million. The Corporation anticipates entering
2009 with positive working capital and an unutilized corporate borrowing
capacity of $7.25 million.
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 44,649,115 Class A shares and 1,012,000 Class B
Bellamont trades on the TSX Venture Exchange under the symbols "BMX.A"
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
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 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, or Danny
Geremia, Vice President Finance and CFO