/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, March 20, 2012 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or "Bellamont") (TSXV: BMX.A) is pleased to provide a summary of its financial results for the three months and year ended December 31, 2011.
FINANCIAL AND OPERATING HIGHLIGHTS
During year ended December 31, 2011, Bellamont achieved the following:
- Achieved a record production level averaging 2,435 Boe/d for the year;
- Increased funds flow from operations for the year by 21% over 2010 to $19.2 million;
- Increased oil and liquids production 24% year over year;
- Increased oil and liquids weighting to 47.0% of corporate total production from 39.0% in 2010;
- Increased operating netback to $28.04/Boe for the year, a 22% improvement over 2010, which was the result of the increased oil and liquids weighting and higher realized crude oil price in 2011; and
- Increased its undeveloped land position 34.5% from 54,059 to 72,734 net acres.
The Corporation will file its audited financial statements and related management's discussion and analysis ("MD&A") for the year ended December 31, 2011, with Canadian securities regulatory authorities on 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 three months and year ended December 31, 2011 and December 31, 2010 are set out below and should be read in conjunction with Bellamont's financial statements and MD&A.
|Three Months Ended December 31,||Year Ended December 31,|
|($000s, except per share amounts)||2011||2010||2011||2010|
|Petroleum and natural gas sales||10,534||10,225||46,766||36,936|
|Funds generated from operations(1)||4,025||4,511||19,158||15,799|
|Per share basic and diluted||0.03||0.03||0.14||0.12|
|Per share basic and diluted||(0.05)||(0.07)||(0.03)||(0.12)|
|Net capital expenditures (2)||5,211||10,650||22,228||89,758|
|Crude Oil (Bbls per day)||918||865||978||774|
|Natural gas (Mcf per day)||6,646||8,921||7,812||8,576|
|Natural gas liquids (Bbls per day)||121||169||155||139|
|Total (Boe per day)||2,147||2,522||2,435||2,342|
|Average realized prices|
|Crude Oil ($ per Bbl)||90.13||77.51||87.98||74.10|
|Natural gas ($ per Mcf)||3.43||3.90||3.97||4.17|
|Natural gas liquids ($ per Bbl)||73.96||54.64||71.41||58.19|
|Average realized price ($ per Boe)||53.34||44.08||52.62||43.19|
|Netbacks(1) ($ per Boe)|
|Petroleum and natural gas sales||53.34||44.08||52.62||43.19|
|Operating and transportation expenditures||(18.97)||(14.63)||(15.65)||(14.33)|
|Undeveloped land holdings|
|Average working interest||77%||71%|
|Shares outstanding, end of period|
|Class A shares||151,562,699||140,787,699|
|Class B shares||-||1,012,000|
|Weighted average shares|
|Basic and diluted(3)||143,003,134||140,787,699||141,408,247||134,007,136|
|(1)||Funds generated from operations, Net debt and Netbacks as presented do not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures for other entities. Please refer to the Non-GAAP Measures section of the MD&A for more details.|
|(2)||Total net capital expenditures, including acquisitions.|
|(3)||For the periods ended March 31, 2010, through to September 30, 2011, the Class B shares are converted at the minimum Class A share price of $1.00 and added to the Class A shares. Thus, each Class B share converted to 10 Class A shares for the purpose of funds generated from operations per share and cash flow from operating activities per share. Class B shares were converted to Class A shares on December 14, 2011; they have been factored accordingly into the weighted average basic share calculation.|
SPECIAL SHAREHOLDER MEETING
Bellamont has scheduled a special meeting of the Bellamont Shareholders to approve the previously announced arrangement under the Business Corporations Act (Alberta) (the "Arrangement") involving Bellamont, Storm Resources Ltd. ("Storm") and the Bellamont Shareholders. The meeting will be held in the Plaza Room at the Metropolitan Conference Centre at 333 - 4th Avenue S.W., Calgary, Alberta on Thursday, March 22, 2012 at 9:00 a.m. (Calgary time).
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 and capital expenditures. 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.
Discovered Petroleum Initially‐In‐Place (DPIIP) is equivalent to Original Oil In Place (OOIP). DPIIP, also known as a "discovered resource", is defined as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially‐in‐place includes production, reserves and contingent resources; the remainder is unrecoverable. A recovery project cannot be defined for this volume of discovered petroleum initially‐in‐place at this time. There is no certainty that it will be commercially viable to produce any portion of the resources.
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.
For further information:
Steve Moran, President and Chief Executive Officer, (403) 802-1355; or
Tavis Carlson, Vice President Finance and Chief Financial Officer
1208, 250- 2nd Street S.W. Calgary, Alberta T2P 0C1
Email: [email protected]