BELLAMONT EXPLORATION LTD. RELEASES 2010 YEAR END FINANCIAL AND OPERATING RESULTS

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


CALGARY, March 28 /CNW/ - Bellamont Exploration Ltd. (the "Corporation"
 or "Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to provide a
 summary of its financial and operating results for the three months and
 year ended December 31, 2010.


FINANCIAL AND OPERATING HIGHLIGHTS 


During the year ended December 31, 2010, Bellamont achieved the
 following:


    --  A record production level averaging  2,343 Boe/d for the year, 
        an increase of 186% from 2009;
    --  Exited the year with 2,840 Boe/d of production;
    --  Increased funds generated from operations for the year by 491%
        over 2009 to $15.8 million (175% increase on a per share
        basis);
    --  Increased oil and liquids production 313% year over year from
        221 bbl/d to 913 bbl/d;
    --  Increased oil and liquids weighting to 39.0% of corporate total
        production from 27.0% in 2009
    --  Decreased G&A per Boe 29% year over year;
    --  Increased operating netback to $22.94/Boe for the year, a 45%
        improvement over 2009, reflective of the increased oil and
        liquids weighting;
    --  An operating netback in the fourth quarter of $24.36/ Boe based
        on a 41% weighting of oil and liquids;
    --  Successfully closed the acquisition of Standard Energy Inc.
        for  $54 million;
    --  Increased its revolving  demand credit facility from $12
        million at the beginning of the year to $50 million currently;
    --  Achieved a 90% success rate on an oil weighted exploration and
        development capital program of $32.8 million, drilling 10 (9.2
        net) wells, resulting in 9 (8.2 net) oil wells.



FINANCIAL AND OPERATING HIGHLIGHTS 


The Corporation will 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
 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, 2010 and December 31, 2009 are set
 out below and should be read in conjunction with Bellamont's financial
 statements and MD&A.







                   Three Months Ended December             Year Ended December 31,
                                           31,

($000s, except          2010       2009      %        2010       2009     % Change
per share                               Change
amounts)

FINANCIAL                                                                         

Petroleum and         10,225      3,390  202 %      36,936     10,246        260 %
natural gas
sales

Funds generated        4,511      1,176  284 %      15,799      2,674        491 %
from operations(
(1))

  Per share             0.03       0.02   50 %        0.11       0.04        175 %
  basic and
  diluted

Net loss             (1,852)      (670)  176 %     (6,526)    (4,569)             
                                                                              43 %

  Per share           (0.01)     (0.01)      -      (0.05)     (0.08)       (38 %)
  basic and
  diluted

Net capital           10,817     25,380 (57 %)      93,436     32,709        186 %
expenditures (
(2))

Net Debt                                            32,787      3,490        839 %

OPERATING                                                                         

Production                                                                        

  Crude Oil              865        271  219 %         774        203        281 %
  (Bbls per day)

  Natural gas          8,921      3,501  155 %       8,576      3,593        139 %
  (Mcf per day)

  Natural gas            169         21  705 %         139         18        672 %
  liquids (Bbls
  per day)

  Total (Boe per       2,522        875  188 %       2,343        820        186 %
  day)

Average realized                                                                  
prices

  Crude Oil ($         77.51      71.44    8 %       74.10      62.26         19 %
  per Bbl)

  Natural gas ($        3.90       4.65 (16 %)        4.17       4.00          4 %
  per Mcf)

  Natural gas          54.64      60.23  (9 %)       58.19      57.66          1 %
  liquids ($ per
  Bbl)

  Average              44.08      42.13    5 %       43.19      34.21         26 %
  realized price
  ($ per Boe)

Netbacks((1)) ($                                                                  
per Boe)

  Petroleum and        44.08      42.13    5 %       43.19      34.21         26 %
  natural gas
  sales

  Royalties           (5.09)     (7.50) (32 %)      (5.92)     (4.93)         20 %

  Operating          (13.93)    (13.46)    3 %     (13.47)    (12.26)         10 %
  expenses

  Transportation      (0.70)     (1.12) (38 %)      (0.86)     (1.25)       (31 %)
  expenses

  Operating            24.36      20.05   22 %       22.94      15.77         45 %
  netback

Undeveloped land                                                                  
holdings

  Gross acres                                       75,846     64,531         72 %

  Net acres                                         54,059     41,573         30 %

  Average                                              71%        64%             
  working
  interest

COMMON SHARES                                                                     

Shares                                                                            
outstanding, end
of year

  Class A shares                               140,787,699 81,861,426         72 %

  Class B shares                                 1,012,000  1,012,000            -

Weighted average                                                                  
shares

  Basic and      150,907,699 76,594,715   97 % 144,127,136 60,703,704        137 %
  diluted((3))










(1)  Funds generated from operations, Net debt and Netbacks as
     presented do not have any standardized meaning prescribed by
     Canadian 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)  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 basic and diluted
     share calculation.





OPERATIONS UPDATE 


Grimshaw Montney Oil Pool 


In the first quarter of 2011, Bellamont has successfully drilled and
 completed 2 (1.75 net) additional horizontal wells at its Grimshaw
 Triassic C Montney oil pool.  Bellamont successfully placed seventeen
 fracture stimulations in the 13-28-83-23W5M well (the "13-28") and
 twelve fracture stimulations in the 16-29-83-23W5M well (the
 "16-29").   The 13-28 well swab tested at 600 bbl/d of total fluid with
 47% oil cut (the remainder being frac fluids) prior to being shut in to
 run the bottom hole pump.  During the test, only 261 out of 325 cubic
 meters of the frac fluid had been recovered. The 16-29 well tested at
 an average of 264 bbl/d of clean oil during its 22 hour test. These
 test rates compare very favorably to test rates from the existing wells
 in the pool, which were fraced between 5 to 11 stages per well.


The average 30 day production rate of the successful horizontal wells in
 this pool has been approximately 110 bbl/d. After one year, the average
 production rate is 60 bbl/d.  The best well in the pool, completed with
 9 fracs, produced at an initial 30 day rate in excess of 175 bbl/d and
 is still producing at 75 bbl/d after 14 months.   Due to the increased
 number of fracture stimulations in the two new wells, Bellamont expects
 these wells to produce at rates equivalent or better than the average
 producing wells drilled by Bellamont to date.    Work has already begun
 to equip these new wells, which should be placed on production in the
 next 30 days.


Success at these two wells, in particular the 13-28, has extended the
 proven boundary of the pool by one-half mile to the east.  This result
 further reinforces Management's interpretation, based on well control
 and three dimensional seismic, that this pool contains approximately 50
 million bbls of Discovered Petroleum Initially‐In‐Place (DPIIP).   At
 the end of 2010, Bellamont had only booked 943 thousand barrels (net),
 or 1.9%, of the internally estimated DPIIP.  Bellamont believes a 15%
 recovery factor from this pool is attainable under primary recovery,
 with 20% possible via waterflood.  Bellamont obtained a core sample
 from a recent well drilled in the pool and expects to complete a study
 evaluating potential for water flood in the second quarter of 2011. If
 the results of the study are positive, Bellamont could initiate a
 waterflood pilot project in the second half of 2011.


During the first quarter of 2011, Bellamont successfully acquired a
 partner's interest in three key sections of land in the centre of this
 pool for $2.35 million.  Bellamont now has a 100% working interest in
 seven of the horizontal wells drilled to date and 75% in the eighth. 
 Based on a drill density of eight wells per section, Bellamont has a
 total of 38 (~34 net) additional horizontal locations identified in
 this pool.   Only three of these locations were booked in the
 Corporation's reserve report at the end of 2010, two of which were the
 13-28 and 16-29.   Bellamont is planning on drilling three additional
 horizontal wells in the pool immediately following spring breakup and
 hopes to continue accelerating development with more positive results.


The economics of Grimshaw are excellent.  The relatively shallow (~900
 metres) vertical depth results in all-in cost per horizontal well of
 approximately $2.0 million and on stream costs of less than $20,000 per
 bbl/d.   These wells qualify for a 5.0% royalty for the first 50,000
 Boe or 18 months of production. Based on an oil price of $95 WTI (USD),
 the new wells are expected to achieve a netback in excess of
 $60.00/boe.


Bellamont completed construction of a 100% owned centralized production
 battery late in the fourth quarter.   Management expects the battery
 will result in reduced operating costs across the field and shorten the
 on-stream time lines for future drills.


Grande Prairie Area 


In the Grande Prairie area, Bellamont has acquired 2240 net acres of
 land in a new Montney oil prospect the Corporation considers analogous
 to the Corporation's Grande Prairie Montney I Oil Pool (the "Montney I
 Pool").  Bellamont is currently producing a total of 1200 boe/d from
 six horizontal wells in the Montney I Oil Pool, comprised of 330bbl/d
 of light oil and natural gas liquids and 5.2 mmcf/d of natural gas. 
 Bellamont's interpretation, based on three dimensional seismic, is that
 the new prospect is similar in size and scope as the Montney I Pool.
 Bellamont's third party engineer estimates the Montney I Pool contains
 both oil and gas, with an estimated DPIIP of 4.8 MM bbls of oil and 55
 Bcf of natural gas.   Bellamont plans to drill a well to evaluate this
 new prospect in the summer of 2011.


ANNUAL MEETING 


Bellamont's annual shareholder meeting will be held at 3:00 p.m.  on
 June 2, 2011 in the Livingston Place Conference Centre, Livingstone
 Place, South Tower, 2(nd) Floor, 222 3(rd) Avenue S.W., Calgary Alberta.


OUTLOOK


2010 was a year of significant achievement for Bellamont.  The
 Corporation has seen significant per share growth of production,
 reserves and cash flow.  The Corporation has a $250 million inventory
 of capital projects consisting of 125 (110 net) drilling locations,
 only 19 (gross) of which are booked in the 2010 year end reserve
 report.  The majority of the Bellamont's unbooked locations are oil
 targets, 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.


Bellamont's current oil and natural gas liquids weighting of daily
 production is approximately 46.0%.  Based on $89.50 average WTI (USD)
 oil price in January and February of 2011, Bellamont has enjoyed an
 excellent field operating netback of approximately $28.00/boe. With a
 2011 capital program heavily weighted to drilling oil targets, a
 conservatively managed balance sheet and solid cash flow base,
 Bellamont is well positioned to take advantage of the recent surge in
 oil prices.


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 83,339 gross acres
 (61,123 net), of which 63,601 gross acres (48,742 net) is located in
 the Peace River Arch area of Alberta.


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.


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.


To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2011/28/c6902.html



p 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"www.bellamont.com/a /p 

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