BELLAMONT EXPLORATION LTD. ANNOUNCES DECEMBER 31, 2010 YEAR END RESERVES AND OPERATIONAL UPDATE

CALGARY, Jan. 17 /CNW/ -- 
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
 THE UNITED STATES/


CALGARY, Jan. 17 /CNW/ - Bellamont Exploration Ltd. (the "Corporation"
 or "Bellamont") (TSXV: BMX.A) (TSXV: BMX.B) is pleased to provide a
 summary of its 2010 year end reserves and an update on current
 operations.


Bellamont intends to file its audited financial statements and related
 management's discussion and analysis ("MD&A") for the year ended
 December 31, 2010, with Canadian securities regulatory authorities on
 the System for Electronic Document Analysis and Retrieval ("SEDAR") on
 or around March 28, 2011. Readers are cautioned that certain financial
 estimates contained herein are unaudited. 


HIGHLIGHTS:


    --  Increased proved plus probable reserves by 123% (37% on a per
        share basis) to a total of 11.5 million Boe with a net present
        value $151.4 million (@NPV10% before tax);
    --  Reserve replacement was 852 % on proved plus probable and 508%
        on proved reserves;
    --  Based on $92.0 million of capital spending in 2010, incurred
        finding, development and acquisitions ("FD&A") costs on a
        proved plus probable basis of $12.45/Boe when including changes
        in future development capital;
    --  Three year average FD&A costs of $12.49 on a proved plus
        probable basis, when excluding changes in future development
        capital;
    --  Based on a current estimated operating netback of approximately
        $28/Boe, Bellamont's recycle ratio is:
  o 2.2X on 2010 proved plus probable FD&A costs, when including
    changes in future development capital;  and 
  o 2.2X on three year average proved plus probable FD&A costs, when
    excluding changes in future development capital.



OIL & GAS RESERVES


The Corporation's December 31, 2010 reserves were independently
 evaluated by GLJ Petroleum Consultants ("GLJ") in accordance with NI
 51-101. The reserve information presented herein utilizes GLJ's January
 1, 2011 price forecast and cost assumptions. 


The reserve data provided in this release represents only a portion of
 the disclosure required under NI 51-101.  All of the required
 disclosure information will be contained in the Corporation's Annual
 Information Form to be filed with SEDAR before the end of April 2011,
 which will be accessible electronically at www.sedar.com.


Reserves Summary




                  Light and Medium                                                 Total Oil
                         Oil              Natural Gas   Natural Gas Liquids       Equivalent

                Corporate Corporate Corporate Corporate Corporate Corporate Corporate Corporate
                  Gross   Net Mbbl(   Gross   Net MMcf(   Gross   Net Mbbl(   Gross   Net Mbbl(
                Mbbl((1))  (2)())   MMcf((1))   (2))    Mbbl((1))   (2))    Mbbl((1))   (2))

PROVED                                                                                          

  Producing         2,040     1,630    15,492    13,373       335       223     4,957     4,082

  Developed
  Non-Producing         0         0       292       246         2         1        51        42

  Undeveloped         182       153     6,521     5,890       125        94     1,394     1,229

TOTAL PROVED        2,222     1,783    22,305    19,509       462       318     6,402     5,353

TOTAL PROBABLE      1,585     1,208    18,987    16,411       368       246     5,118     4,189

TOTAL PROVED
PLUS PROBABLE(
(3))                3,807     2,991    41,291    35,919       830       564    11,520     9,542






Net Present Value of Future Net Revenue of Oil and Gas Reserves





                Net Present Values of Future Net Revenue Before Income
                                        Taxes
                                Discounted At (%/year)

                                                                      

                     0%        5%       10%       15%        20%      

Reserves                                                              
Category           (M$)      (M$)      (M$)      (M$)       (M$)

                                                                      

PROVED                                                                

  Producing     148,288   112,591    92,558    79,417     70,026      

  Developed
  Non-Producing     607       530       469       420        380      

  Undeveloped    21,457    13,267     8,298     5,134      3,036      

TOTAL PROVED    170,352   126,388   101,324    84,970     73,443      

TOTAL PROBABLE  142,191    79,725    50,094    33,636     23,554      

TOTAL PROVED                                                          
PLUS PROBABLE(
(3))            312,544   206,113   151,418   118,606     96,997









(1) "Corporate Gross" reserves means Bellamont's working interest share
    before deduction of royalties and without including any royalty
    interests owned by Bellamont

(2) "Corporate Net" reserves means Bellamont's working interest share
    after deduction of royalties and including royalty interests owned
    by Bellamont

(3) Due to rounding, certain columns may not add exactly





Corporate Gross Reserve Reconciliation for 2010





                                                  Proved +
                                  Proved Probable Probable
                                  (MBoe)   (MBoe)   (MBoe)

December 31, 2009 Opening Balance  2,955    2,211    5,166

Drilling Extensions                1,538      699    2,237

Infill drilling                       66       42      108

Technical Revisions                   35     (66)     (32)

Acquisitions Less Dispositions     2,654    2,231    4,886

Production                         (845)        0    (845)

December 31, 2010 Closing Balance  6,402    5,118   11,520





2010 FINDING AND DEVELOPMENT COSTS  


NI 51-101 specifies how F&D costs should be calculated if they are to be
 reported.  NI 51-101 requires that the total of the exploration and
 development costs incurred in the most recent financial year together
 with the change in future development costs during the most recent
 financial year be divided by the reserve additions for such year.  The
 costs are to be reported on both a proved and a proved plus probable
 basis, after eliminating the effects of acquisitions and dispositions. 
 Bellamont has chosen to report its F&D cost using the two following
 methods: 1) after eliminating the effects of acquisitions and
 disposition; and 2) including the effect of acquisitions and
 dispositions ("FD&A").  In addition, we have shown the F&D costs for
 the three year average from 2008 to 2010.


           



                                2010          Three Year Average
                                                  (2008-2010)

                      Total  Proved Plus                Proved Plus
                     Proved   Probable     Total Proved  Probable

Exploration and                           
Development
Expenditures (M$) (
(1))                 $31,735     $31,735        $60,480     $60,480

Acquisitions                              
Expenditures ((2))   $60,253     $60,253        $83,511     $83,511

                                                                   

Reserve Additions                         
(mBoe) ((3))                                                       

    --  Exploration                       
        and
        Development    1,639       2,313          3,423       5,237
        ((4))
    --  Acquisitions   2,654       4,886          3,670       6,293
        ((5))
                                                                   

Finding and                               
Development Costs
($/Boe) ((6)())                                                    

    --  Excluding     $19.25      $13.66         $17.61      $11.55
        FDC
    --  Including     $13.93      $12.71         $19.84      $15.66
        FDC
                                                                   

Acquisition Costs                         
($/Boe)               $22.70      $12.33         $22.75      $13.27

                                                                   

Finding, Development                      
and Acquisition
Costs ($/Boe)                                                      

    --  Excluding     $21.38      $12.76         $20.30      $12.49
        FDC
    --  Including     $19.34      $12.45         $21.35      $14.36
        FDC








(1) Exploration and development expenditures exclude capitalized
    administration costs

(2) The acquisition expenditures include the purchase price of
    corporate acquisitions rather than the amounts allocated to
    property, plant and equipment for accounting purposes and exclude
    acquisition costs

(3) Gross Corporation interest reserves are used in this calculation
    (interest reserves before deduction of any royalties and without
    including any royalty interests of the Corporation)

(4) Includes Technical Revisions

(5) Includes production from acquisitions during the applicable time
    period 

(6) Total exploration and development costs incurred in the most recent
    financial year and the change during that year in estimated future
    development costs generally do not reflect the total costs of
    reserve additions for that year





NET ASSET VALUE


The following table provides a calculation of the Corporation's net
 asset value based on the estimated future net revenue associated with
 Bellamont and Standard's combined proved plus probable reserves
 discounted at 10% (before tax) as presented in the December 31, 2010
 reserve reports as evaluated by GLJ.




 ___________________________________________________________________
|              |            |               |   Value per| Value per|
|              |            |     Before tax|basic share(|   diluted|
|              |Total       |value (M$)((1))|      (2,3))|share((4))|
|______________|____________|_______________|____________|__________|
|Proved        |            |               |            |          |
|Producing     |4,957 Mboe( |               |            |          |
|Reserves      |(5))        |        $92,558|       $0.61|     $0.57|
|______________|____________|_______________|____________|__________|
|Total Proved  |6,402 Mboe( |               |            |          |
|Reserves      |(5))        |       $101,324|       $0.67|     $0.63|
|______________|____________|_______________|____________|__________|
|Probable      |5,118 Mboe( |               |            |          |
|Reserves      |(5))        |        $50,094|       $0.33|     $0.31|
|______________|____________|_______________|____________|__________|
|Total Proved +|            |               |            |          |
|Probable      |11,520 Mboe(|               |            |          |
|Reserves      |(5))        |      $ 151,418|       $1.00|     $0.94|
|______________|____________|_______________|____________|__________|
|Undeveloped   |            |               |            |          |
|land (acres)( |            |               |            |          |
|(6))( )       |54,058      |        $ 5,406|       $0.04|     $0.03|
|______________|____________|_______________|____________|__________|
|Net Debt      |            |               |            |          |
|estimate      |            |               |            |          |
|(December     |            |               |            |          |
|31/10)        |$33 million |     $ (33,000)|     $(0.22)|   $(0.20)|
|______________|____________|_______________|____________|__________|
|Proceeds from |            |               |            |          |
|stock options(|            |               |            |          |
|(4))          |$6.8 million|            n/a|         n/a|    $ 0.04|
|______________|____________|_______________|____________|__________|
|Total Net     |            |               |            |          |
|Asset Value   |            |       $123,824|       $0.82|    $ 0.81|
|______________|____________|_______________|____________|__________|








(1) PV10 values Utilizing GLJ  Petroleum Consultants January 1, 2011
    price forecast

(2) 140,787,699 Class A shares issued and outstanding as at December
    31, 2010

(3) Assumes conversion of  the 1,012,000 Class B shares to Class A
    shares on a 10:1 basis

(4) Assumes the issuance of an additional 10,965,000 Class A shares
    issued pursuant to the Corporation's stock option plan at an
    average price of $0.62 resulting in total proceeds of $6,776,000.

(5) December 31, 2010 reserve report as evaluated by GLJ

(6) Internal estimate equivalent to $100 per net corporate undeveloped
    acre





OPERATIONAL UPDATE


Grande Prairie 


Bellamont has successfully drilled another horizontal well at the Grande
 Prairie Montney I Oil Pool. This is the sixth successful horizontal
 well drilled in this pool.  The new well was drilled horizontally and
 has been successfully completed with a 14 stage, 588 tonne frac. The
 well flow tested at a rate of 110 bbls/d day of light oil (40° AP) and
 1.2 mmcf/d of natural gas.  Bellamont is in the process of equipping
 this well and placing it on production in the next week at an initial
 rate of approximately 300 boe/d (27% oil and Ngl's). Approximately 50
 percent of the 2,115 cubic metres of the frac fluids were recovered
 during the production test. Management expects the well's production to
 improve to approximately 500 boe/d once all of the frac fluids have
 been recovered. 


To date, the Montney I Pool has been developed by Bellamont at 400 meter
 inter well distance.  Bellamont's third party engineer estimates this
 pool contains both oil and gas, with an estimated Total Petroleum
 Initially In Place (TPIIP) of 4.8 MMbbl and 55 Bcf.   Bellamont
 believes this pool will ultimately be most effectively developed at 200
 metres inter well distance, similar to densities as drilled by other
 operators in prolific Montney oil/gas pools. At 200 meter well inter
 well distance; Bellamont has 17 remaining locations in this pool, all
 defined by three dimensional seismic and well control.


Bellamont's two horizontal wells at its Grande Prairie Dunvegan oil pool
 have recently been placed on production and are currently producing 170
 boe/d  (82% light oil) net to Bellamont.    


Grimshaw


Bellamont has recently placed on production its two latest horizontal
 wells in its Grimshaw Triassic C Montney oil pool, adding 210 bbl/d of
 light oil (30° API) net to Bellamont.  There are now six successful
 horizontal wells drilled by Bellamont in this pool. Bellamont has also
 recently completed its construction of a centralized production
 battery. The average initial production rate of the horizontal wells in
 this pool (first 30 days) has been approximately 110 bbl/d.  These
 wells and have shown a relatively shallow decline profile and are
 producing an average of 60 bbl/d after 10 months. 


Bellamont recently completed a three dimensional seismic program over
 this pool. Management's analysis of this data has reinforced its
 interpretation that this pool contains approximately 50 million bbls of
 TPIIP.  Pools analogous to Bellamont's Grimshaw pool have been
 horizontally drilled to densities as high as 16 wells per section (i.e.
 100 metres inter well distance) with estimated recovery factors of 15%.
 By utilizing multi-staged facing technology, Bellamont believes the
 Grimshaw Triassic C Montney oil pool could ultimately achieve a similar
 15% recovery factor, at a drill density of only 8 wells per section
 (i.e. 200 metres inter well distance). Management estimates a potential
 recovery factor up to 20% is possible via water flood and is currently
 undertaking a study evaluating this alternative.  Bellamont has a total
 of 40 (~30 net) additional locations identified in this pool. The
 Corporation plans to drill two more wells in the pool in the first
 quarter of 2011.


OUTLOOK


The year of 2010 was one of significant achievement for Bellamont.  The
 Corporation has seen significant per share growth of production,
 reserves and cash flow.  Bellamont is currently producing 2,800 boe/d
 (~45% oil and natural gas liquids). Once the latest Grande Prairie well
 is placed on production, total corporate production will increase to
 approximately 3,100 boe/d to 3,300 boe/d, a record high for the
 Corporation. Another 250 boe/d (100% natural gas) is currently
 curtailed by third party restrictions and will be added over the next
 several months.


The Corporation has a $250 million inventory of capital projects
 consisting of 118 (100 net) drilling locations, the vast majority of
 which are lower risk and developmental in nature.  This drilling
 inventory will provide Bellamont with a solid platform for growth over
 the next several years.  Bellamont has expanded its technical team over
 the past six months and expects to accelerate its identification of new
 projects to add to its large existing inventory. 


Investors are encouraged to view an updated version of Bellamont's
 corporate presentation on its web page at www.bellamont.com.  


Bellamont's strategy is 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. Bellamont has a strong technically
 focused management team that internally generates and develops high
 quality large resource based prospects. In addition, the Corporation
 has compiled an undeveloped land inventory of 75,486 gross acres
 (54,058 net), of which 60,241 gross acres (45,687 net) is located in
 the Peace River Arch area of Alberta.   


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 140,787,699 Class A shares and
 1,012,000 Class B shares outstanding.


FORWARD LOOKING STATEMENTS


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.


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.


To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/January2011/17/c3082.html



p align="justify"Steve Moran, President and Chief Executive Officer, [phone]; orbr/ Tavis Carlson, Vice President Finance and Chief Financial Officerbr/ 1208, 250- 2supnd/sup Street S.W. Calgary, Alberta T2P 0C1br/ Email: a href="mailto:[e-mail]"[e-mail]/abr/ a href="http://www.bellamont.com" cr="true"www.bellamont.com/a/p

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