BELLAMONT EXPLORATION LTD. RELEASES FIRST QUARTER 2011 FINANCIAL AND OPERATING RESULTS

CALGARY, June 1, 2011 /CNW/ -- 
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
 THE UNITED STATES


CALGARY, June 1, 2011 /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 ended March 31, 2011.


FIRST QUARTER 2011 HIGHLIGHTS 


    --  First quarter funds generated from operations increased 15
        percent to $5.2 million from $4.5 million in the fourth quarter
        of 2010;
    --  Increased average production to 2,639 Boe/d in the first
        quarter, an increase of 52.5 percent from the same period of
        2010;
    --  Increased operating netback  to $27.68/Boe, an increase of 14
        percent from the fourth quarter of 2010;
    --  Average production and operating expenses of $14.04/Boe were
        recorded in the first quarter, a decrease of 4 percent from the
        fourth quarter of 2010;
    --  During the first quarter, Bellamont incurred $9.4 million of
        net capital expenditures, the significant components of which
        were as follows:
  o Drilled 2 (1.75 net) wells resulting in two (1.75 net) oil wells;
  o Equipped 1 (1 net) well that was drilled in the fourth quarter of
    2010;
  o Installed electrification equipment in the Grimshaw area to reduce
    production and operating expenses;
  o Purchased 9 (9 net) sections of land in BC from a third party,
    prospective for Doig liquids rich natural gas and Baldonnel oil;
  o Acquired 4 (3.5 net) sections of land two miles north of the
    Corporation's Grande Prairie Montney I pool, prospective for
    Montney oil and liquids rich natural gas;
  o Acquired a partner's interest in the Grimshaw area for $2.35
    million in cash, adding oil production and reducing overriding
    royalties; and,
  o Disposed its Pembina property for $2.23 million in cash.



Subsequent to the first quarter, Bellamont closed an agreement with a
 private company to acquire a non-producing property in the Birch Area
 of British Columbia for a purchase price of $3.5 million in cash.  The
 property has assigned reserves of 0.6 million BOE, with a December 31,
 2010 value of $5.7 million (NPV@10%BT)(1); and includes 25 net sections of lands, with an average working
 interest of approximately 90 percent.


In the second quarter of 2011, Bellamont has purchased a 100 percent
 interest in a section of land immediately offsetting its Grande Prairie
 Montney I pool.  Based on three dimensional seismic and well control,
 the Corporation estimates the acquired lands contain 1.9 MMboe(2) of Discovered Petroleum Initially-In-Place ("DPIIP"), comprised of
 liquids rich (25 bbls/mmcf) natural gas.  The acquired lands have up to
 4 drilling locations. The purchase price was $1.5 million in cash.


AREA UPDATES


Grimshaw Montney Oil Pool


In the first quarter of 2011, Bellamont successfully drilled and
 completed 2 (1.75 net) additional horizontal wells at its Grimshaw
 Triassic C Montney oil pool at 13-28-83-23W5M well (the "13-28") and
 16-29-83-23W5M well (the "16-29").  Both wells were placed on
 production on April 7(th), 2011.  To date, the 16-29 (Bellamont 100 percent working interest) has
 produced an average daily rate of approximately 110 boe/d (95 percent
 oil) over its first 46 days.  The 13-28 (Bellamont 75 percent working
 interest) was facility restricted until May 2(nd).  Since removing such restrictions, the 13-28 has produced an average
 rate of 100 boe/d (73.0% oil). Bellamont currently plans drilling at
 least three more wells in Grimshaw this year.


Grande Prairie


Bellamont has acquired 4 (3.5 net) sections of land located two miles
 north of its prolific Grande Prairie Montney I pool.  During the month
 of April, Bellamont produced 1150 boe/d from six horizontal wells in
 the Montney I pool, including 220 bbl/d of light oil and 100 bbl/d of
 natural gas liquids.  Bellamont has identified a seismic anomaly on the
 acquired lands indicating the potential of a pool analogous in size to
 the Montney I pool.  The Corporation's interpretation is based on the
 same three dimensional seismic survey that covers the Montney I pool.
 Bellamont plans on drilling a vertical well to test this seismic
 anomaly this year.  Success would lead to a horizontal well
 development.


In addition, Bellamont has acquired a 100 percent working interest in a
 section of land immediately offsetting the Grande Prairie Montney I
 pool.  Bellamont has mapped the Montney I pool over the acquired land
 and estimates such lands contains 1.9 mmboe(2 )of DPIIP comprised of liquids rich (25 bbls/mmcf) natural gas.  The
 Corporation would expect to recover 65.0% of the DPIIP on the acquired
 land and has identified up to 4 high impact drilling locations.  The
 average well in the GP Montney I Pool has had an initial production
 rate (first three months) of approximately 500 boe/d.


Bellamont is planning on drilling one additional Montney horizontal well
 in the Grande Prairie area this year.


New British Columbia Core Area


Early in 2011, Bellamont made a strategic decision to diversify its
 opportunity portfolio and began building a land base in a new core area
 in British Columbia.  The Corporation's mandate was to build a land
 position in an area where it could see the potential for repeatable
 "resource type" plays.  Through a series of transactions and land
 sales, Bellamont has compiled a land position of 54 sections (43 net)
 in the Birch, Stoddart and Fireweed areas of British Columbia. 
 Bellamont's lands are prospective for light oil in the Baldonnel
 formation and liquids rich natural gas in the Montney and Doig
 Formations.  Other area operators in this region have recently reported
 success drilling horizontal wells completed with multi-staged fracture
 stimulations.  Bellamont is well positioned on these emerging plays. 
 Bellamont plans on drilling one horizontal well this year for Baldonnel
 oil.


______________________________________
(1) Estimated values do not represent fair market value
(2) Discovered Petroleum Initially in Place ("DPIIP") - is defined in the
 Canadian Oil and Gas Evaluation Handbook ("COGEH") as the quantity of
 hydrocarbons that are estimated to be in place within a known
 accumulation. Original Gas in Place ("OGIP") is a more commonly used
 industry term when referring to gas accumulations. DPIIP is divided
 into recoverable and unrecoverable portions, with the estimated future
 recoverable portion classified as reserves and contingent resources.
 There is no certainty that it will be economically viable or
 technically feasible to produce any portion of this DPIIP except for
 those portions identified as proved or probable reserves.





FINANCIAL AND OPERATING HIGHLIGHTS


The Corporation will file its unaudited interim financial report and
 related management's discussion and analysis ("MD&A") for the three
 months ended March 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 ended March 31, 2011, December 31, 2010 and March 31, 2010 are
 set out below and should be read in conjunction with Bellamont's
 interim financial report and MD&A.



                                                               

                           March 31,       December 31,       March 31,
Three Months Ended              2011               2010            2010

FINANCIAL ($000s,                                            
except per share)                                                      

Petroleum and                                                
natural gas sales             11,850             10,225           7,503

Funds generated from                                         
operations((1))                5,177              4,511           3,394

  Per Class A and                                            
  Class B share((2))            0.03               0.03            0.03

Net loss                       (293)            (9,610)         (5,288)

  Per share basic                                            
  and diluted((3))                 -             (0.07)          (0.05)

Net capital                                                  
expenditures(()(4)
())                            9,394             10,649          60,006

Net debt((1))                 36,964             32,787          15,171

OPERATING                                                              

Production                                                             

  Crude Oil (Bbls                                            
  per day)                     1,015                865             617

  Natural gas (Mcf                                           
  per day)                     8,753              8,921           6,297

  Natural gas                                                
  liquids (Bbls per
  day)                           166                169              65

  Total (Boe per                                             
  day)                         2,639              2,522           1,731

Average realized                                             
prices                                                                 

  Crude Oil ($ per                                           
  Bbl)                         83.57              77.51           76.57

  Natural gas ($ per                                         
  Mcf)                          4.10               3.90            5.08

  Natural gas                                                
  liquids ($ per
  Bbl)                         66.20              54.64           64.70

  Average realized                                           
  price ($ per Boe)            49.89              44.08           48.17

Netbacks((1)) ($ per                                         
Boe)                                                                   

  Petroleum and                                              
  natural gas sales            49.89              44.08           48.17

  Royalties                   (8.17)             (5.09)          (8.43)

  Production and                                             
  operating expenses         (14.04)            (14.64)         (13.03)

  Operating netback            27.68              24.35           26.71

Undeveloped land                                             
holdings                                                               

  Gross acres                 82,853             75,846          97,123

  Net acres                   61,521             54,059          64,712

  Average working                                            
  interest                       74%                71%             67%

SECURITIES (000s)                                                      

Shares outstanding,                                          
end of period                                                          

  Class A shares             140,788            140,788         140,788

  Class B shares               1,012              1,012           1,012

Weighted average                                             
shares                                                                 

  Basic and diluted(                                         
  (3))                       140,788            140,788         113,289









(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)   For the periods ended March 31, 2011, December 31, 2010 and March
      31, 2010, 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.

(3)   Excluded from diluted earnings per share is the effect of stock
      options and convertible Class B shares as they were anti-dilutive
      for the periods ended March 31, 2011, December 31, 2010 and March
      31, 2010.

(4)   Total net capital expenditures, including and acquisitions and
      dispositions.








OUTLOOK


The Corporation's Board of Directors has approved an increase in the
 2011 capital budget from $27 million to $35.0 million. This increase
 incorporates $8.4 million spent by Bellamont to date building its new
 land positions, none of which was included in the original 2011
 budget.  The increase allows the Corporation to proceed with an active
 oil weighted drilling program for the balance of the year. The
 increased capital will be funded out of cash flow and the Corporation's
 revolving credit facility. Bellamont's bank line was recently increased
 from $50 million to $60 million. Bellamont production guidance remains
 unchanged.


The Corporation has a drilling inventory consisting of 142 (128 net)
 drilling locations, only 19 (gross) of which are booked in the 2010
 year end reserve report.  The majority of the Corporation's drilling
 inventory, 105 net locations in total, target light oil and are lower
 risk and developmental in nature.  The drilling inventory will provide
 Bellamont with a solid platform for growth over the next several years.


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 and British Columbia. 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.


ANNUAL MEETING


Bellamont's annual shareholder meeting will be held at 3:00 p.m. on June
 02, 2011 in the Livingston Place Conference Centre, 2nd floor 222 3rd
 Ave SW.


FORWARD LOOKING STATEMENTS


This press release may contain forward-looking statements including
 expectations of future production, cash flow, recycle ratios, netbacks
 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 defined in the
 Canadian Oil and Gas Evaluation Handbook ("COGEH") as the quantity of
 hydrocarbons that are estimated to be in place within a known
 accumulation. Original Gas in Place ("OGIP") is a more commonly used
 industry term when referring to gas accumulations. DPIIP is divided
 into recoverable and unrecoverable portions, with the estimated future
 recoverable portion classified as reserves and contingent resources.
 There is no certainty that it will be economically viable or
 technically feasible to produce any portion of this DPIIP except for
 those portions identified as proved or probable reserves.


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.


 


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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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