BELLAMONT EXPLORATION LTD. PROVIDES AN OPERATIONAL UPDATE ON SUCESSFULL OIL DRILLING PROGRAM AND ANNOUNCES INCREASES TO ITS YEAR

CALGARY, Oct. 28 /CNW/ -- 
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
 THE UNITED STATES


CALGARY, Oct. 28 /CNW/ - Bellamont Exploration Ltd. (the "Corporation"
 or "Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to provide an
 operational update on its recent light oil drilling program and an
 increase to its year-end production exit forecast.


Highlights include the following:


    --  Successful drilling at Grimshaw and Grande Prairie will add
        over 425 bbl/d (net) of light oil production to the Corporation
        before year end;
    --  Based on its drilling success, Bellamont has increased its
        year-end production guidance for the third time in 2010. The
        Corporation expects to exit the year averaging 2,900 boe/d
        (45.0% oil and NGL's) for the month of December, exceeding its
        previous year-end exit guidance of 2,750 boe/d.



SUCCESSFUL LIGHT OIL DRILLING PROGRAM 


Grimshaw Montney Oil Pool


The Corporation has successfully drilled and completed another 2 (2 net)
 horizontal wells in its Montney oil pool discovery in Grimshaw. Based
 on test results, Bellamont expects to place the wells on production in
 November at initial rates of approximately 100 bbl/d each, adding 200
 bbl/d of light oil (~30°API) production net to Bellamont. The estimated
 cost to drill, complete and equip these wells is approximately $2.0
 million per well.


Over the three month period from June to August of 2010, the
 Corporation's average netback at Grimshaw was approximately $40/boe. 
 Bellamont expects to complete construction of a multi well battery
 prior to year-end, which will centralize production operations for all
 seven wells drilled by Bellamont to date and all future wells.   The
 Corporation expects the battery will result in reduced operating costs,
 enhancing the netbacks for the existing wells and full cycle economics
 for future drills.  


Bellamont has commenced a 12 square mile three dimensional seismic
 program over the pool, which it expects to complete by the end of the
 year.  The results of program are expected to optimize further
 development of the pool in 2011. Based on the potential for four wells
 per section spacing, Bellamont has a total of sixteen (12 net)
 additional locations in this pool. None of these locations have been
 assigned reserves by the Corporation's third party independent reserve
 evaluators.


Grande Prairie Dunvegan Oil Pool


Bellamont successfully drilled and completed 2 (2 net) horizontal wells
 in its Grande Prairie Dunvegan C light oil pool.  Both wells were
 completed via multistage fracture stimulations.  Based on test rates,
 the Corporation expects to place these two wells on production by
 December at combined rate of 225 Bbl/d of light oil net to Bellamont. 
 The pool currently produces approximately 70 bbl/d of light oil (36°
 API) net to Bellamont from four vertical wells and realizes a superior
 operating netback of approximately $43/Boe.  The estimated cost to
 drill, complete and equip these wells is approximately $1.75 million
 per well. The Corporation is also building a centralized battery that
 will service all of the producing wells in the pool.  The Corporation
 has an additional five horizontal drilling locations in this pool, none
 of which have been booked in the Corporation's reserve report. 


Based on core analysis, Bellamont believes the Dunvegan C pool is a
 likely candidate for water flood which could ultimately lead to
 recovery factors of up to 35.0% of the original oil in place.  To date,
 Bellamont has only booked approximately 3.0% of the original oil in
 place estimated by management. 


Grand Prairie Montney Oil Pool


Bellamont's most recent well in this pool, drilled at 3-30-71-4W6 was
 placed on production on August 14, 2010 and is currently producing in
 excess of 500 boe/d, comprised of 85 bbl/d of light oil, 35 bbl/d of
 natural gas liquids and 2.3 mmcf/d of natural gas.   Bellamont has a
 total of six more drilling locations in this pool, all 100% working
 interest.  Based on the performance of the existing wells in this pool,
 management estimates these locations could add up to 2,400 boe/d (first
 three month average) of productive capacity net to Bellamont over the
 next several years.  Only two of these locations are currently booked
 in Bellamont's reserves.   As a result, the Corporation expects this
 property to be a solid cash flow, reserves and production growth asset
 for the next several years.


INCREASE TO YEAR END PRODUCTION GUIDANCE


As a result of Bellamont's successful capital program, the Corporation
 has increased its year-end production guidance to 2900 Boe/d (45.0% oil
 and liquids) from its previous estimate of 2,750 Boe/d.  The
 Corporation's current production is approximately 2,600 Boe/d (39.0%
 oil and liquids).  All of the incremental volumes to be added before
 year end are light oil and will qualify for the Alberta Government's
 Horizontal Oil New Well Royalty rate of 5.0%.     


Bellamont has a total of six more drilling locations in this pool, all
 100% working interest.  Based on the performance of the existing wells
 in this pool, management estimates these locations could add up to
 2,400 boe/d (first three month average) of productive capacity net to
 Bellamont over the next several years.  Only one of these locations is
 currently booked in Bellamont's reserves.  As a result, the Corporation
 expects this property to be a solid cash flow, reserves and production
 growth asset for the next several years.


OUTLOOK


Bellamont has assembled a balanced, low risk drilling inventory of
 development projects in numerous high impact plays concentrated in the
 Peace River Arch of Alberta.   Bellamont has maintained a disciplined
 approach and a conservative balance sheet.  The Corporation is well
 positioned to significantly grow production, reserves and cash flow on
 a per share basis over the next 18 to 24 months, funded by its cash
 flow and available bank lines.  


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. 


Bellamont is an 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.


Neither the TSX Venture Exchange nor its Regulation Services Provider
 (as that term is defined in the policies of the TSX Venture Exchange)
 accepts 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

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/October2010/29/c7163.html



pSteve Moran, President and Chief Executive Officer, [phone]; orbr/ Tavis Carlson, Vice President Finance and Chief Financial Officer, (403)  802-0117br/ 1208, 250 - 2supnd/sup Street S.W. Calgary, Alberta T2T 5S8br/ Email: a href="mailto:[e-mail]"[e-mail]/abr/ a href="http://www.bellamont.com"www.bellamont.com/a/p

Copyright