BELLAMONT EXPLORATION LTD. RELEASES THIRD QUARTER 2010 FINANCIAL AND OPERATING RESULTS

CALGARY, Nov. 29 /CNW/ -- 
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
 THE UNITED STATES


CALGARY, Nov. 29 /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 September 30, 2010. 


THIRD QUARTER 2010 HIGHLIGHTS 


During the third quarter, Bellamont achieved the following:


    --  Achieved a record production level averaging 2,586 Boe/d (38%
        oil and natural gas liquids), an increase 215% from the same
        period in 2009;
    --  Spent $9.9 million of exploration and development expenditures
        by drilling and completing 4 multi-staged fractured horizontal
        oil wells. Two commenced production in the third quarter with
        initial rates totalling 570 boe/d, and two are forecasted to
        commence production in December at initial rates totalling 225
        bbl/d. All of these wells qualify for the new horizontal oil
        royalty rate of 5.0%;
    --  Increased funds generated from operations to $3.86 million, a
        418% increase from the same period in 2009;
    --  Increased funds generated from operations per basic share to
        $0.03, an increase of 88% from the same period in 2009;
    --  Operating netback totalled $20.01, an increase of 43% from the
        same period in 2009; and,
    --  Subsequent to September 30, 2010, increased its revolving
        operating demand loan by $7.5 million to $50 million.



FINANCIAL AND OPERATING HIGHLIGHTS


The Corporation will file its unaudited financial statements and related
 management's discussion and analysis ("MD&A") for the three and nine
 months ended September 30, 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 ended September 30, 2010, June 30, 2010 and September 30, 2009
 are set out below and should be read in conjunction with Bellamont's
 financial statements and MD&A.



                               September 30,  June 30, September 30,
Three Months Ended                       2010     2010          2009

FINANCIAL ($000s, except
per share)

Petroleum and natural gas               9,696    9,512         2,239
sales

Funds generated from                    3,862    4,032           745
operations((1))

 Per basic share                         0.03     0.03          0.01

Net loss                              (2,004)  (1,887)         (969)

 Per share basic                       (0.01)   (0.01)        (0.02)
 and diluted

Net capital expenditures(               9,736    9,624         3,012
(2))

Net debt((1))/(working                 26,452   20,814       (5,132)
capital surplus)

OPERATING

Production

 Crude Oil (Bbls per day)                 837      773           168

 Natural gas (Mcf per day)              9,554    9,491         3,768

 Natural gas liquids (Bbls                157      160            26
 per day)

 Total (Boe per day)                    2,586    2,515           822

Average realized prices

 Crude Oil ($ per Bbl)                  71.68    71.08         68.04

 Natural gas ($ per Mcf)                 3.84     4.15          3.02

 Natural gas liquids ($ per             55.61    63.85         60.16
 Bbl)

 Average realized price ($              40.76    41.57         29.62
 per Boe)

Netbacks((1)) ($ per Boe)

 Petroleum and natural gas              40.76    41.57         29.62
 sales

 Royalties                             (5.79)   (5.19)        (4.39)

 Operating expenses                   (14.17)  (13.37)       (10.15)

 Transportation expenses               (0.79)   (0.90)        (1.06)

 Operating netback                      20.01    22.11         14.02

Undeveloped land holdings

 Gross acres                           81,094   91,286        64,842

 Net acres                             56,454   61,775        40,357

 Average working interest                 70%      68%           62%

COMMON SHARES (000s)

Shares outstanding, end of
period

 Class A shares                       140,788  140,788        56,281

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

Weighted average shares

 Basic and diluted((3))               150,908  150,908        56,488









(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) For the three months ended September 30, 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 basic and diluted share calculation.





AREA UPDATES


Grande Prairie Montney Oil Pool


Bellamont has recently spud its third horizontal step-out well (100%
 working interest) in the Grande Prairie Montney I Oil pool.  Bellamont
 has had significant drilling success in the area in 2010, adding more
 than 800 Boe/d (60 bbls/mmcf of oil and liquids) of current production
 through its first two horizontal wells.       


Bellamont has five additional drilling locations in this pool, all 100%
 working interest, only one of which has been assigned reserves.  Based
 on the performance of the existing wells in this pool, management
 estimates these locations could add up to 2,000 Boe/d of productive
 capacity net to Bellamont.  As a result, the Corporation expects this
 property to be a solid cash flow, reserves and production growth asset
 for the next several years.


The Grande Prairie Montney wells qualify for the Natural Gas Deep
 Drilling Program, further enhancing the economics of these wells.  
 Utilizing a $4.00/mcf (AECO-C) and $80.00 WTI (US), Bellamont estimates
 these wells to have a $25.00/Boe operating netback.


Grande Prairie Dunvegan Oil Pool 


Bellamont successfully drilled and completed two Dunvegan light oil
 horizontal wells in the third quarter.  Tie-in of these wells is
 underway and production is expected to come on in early December. 
 Initial production from these wells is expected to exceed 225 bbl/d. 
 The Corporation realized an excellent $44/Boe operating netback from
 this property in the third quarter.  With the reduced 5.0% crown
 royalty, the netback for the new wells should be in excess of $55/Boe,
 utilizing an $80.00 WTI (US) price forecast.  


Bellamont estimates the Dunvegan C pool has up to 15 million barrels of
 total petroleum initially in place ("TPIIP") and has produced less than
 1.0% to date.  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 TPIIP.  Bellamont has
 only booked 3.0% of the estimated TPIIP to date.


Grimshaw Montney Oil Pool


The Corporation now has six horizontal wells on production in its
 Montney oil pool discovery at Grimshaw.  The Corporation realized
 excellent operating netbacks of $44/Boe at this property in the third
 quarter. In November, the Corporation placed on production its fifth
 and sixth horizontal oil wells (100% working interest), adding 200
 bbl/d of light oil production and bringing total production from this
 pool to 400 bbl/d net to Bellamont.  These new wells also qualify for
 the reduced 5.0% crown royalty, which should result in a netback in
 excess of $50/Boe when utilizing a $80.00 WTI (US) price forecast. 
 Construction of a central production battery is currently underway and
 will be complete by year end.


Bellamont has recently obtained a core sample from its latest well
 drilled.  Preliminary analysis of the core is encouraging, indicating
 superior rock quality than previously assumed and potential for water
 flood.  More detailed laboratory analysis of the core will be
 undertaken in the next several months to fully assess the pool's water
 flood potential. Bellamont estimates the pool has up to 50 million
 barrels of TPIIP (38 million net) and has only booked 1.5% of this
 estimate to date. Pools analogous to Grimshaw have been assigned
 recovery factors up to 15%, with potential of 20% under water flood.


In addition, Bellamont has recently shot a 12 square mile three
 dimensional seismic program over the pool, the data from which will be
 interpreted by year-end. 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 which have been assigned reserves.   


COMMODITY RISK MANAGEMENT PROGRAM


In the third quarter, the Corporation initiated a risk management
 program with the National Bank, the Corporation's banker. Accordingly,
 Bellamont's active risk management contracts include:


i)     100 Bbl/d; August  2010 - January 2011, WTI - CAD, costless
 collar - $75.00 x  $87.90;
ii)    100 Bbl/d; August 2010 -  April 2011, WTI - CAD, costless collar
 - $70.00 x  $93.10;
iii)    200 Bbl/d; January 2011 - December 2011, WTI - USD,  fixed price
 swap; $88.55; and,
iv)   100 Bbl/d; February 2011 -  December 2011, WTI - USD, costless
 collar - $81.00 x $95.10.


OUTLOOK


Bellamont has had significant growth in 2010 mainly due to its
 acquisition of Standard Energy and successful development of its
 Montney oil pools in the Grande Prairie and Grimshaw area of Alberta. 
 Bellamont is well on track to meet or exceed its 2,300 Boe/d guidance
 for 2010.  Bellamont should exit the year at 2,900 Boe/d (45% oil and
 liquids), which equates to growth from 2009 of 64% on a per share basis
 and more than 170% on a gross production basis. 


The Corporation's third quarter funds generated from operations was $3.9
 million, netback was $20.01 per boe and debt to cash flow ratio was 1.7
 to 1 (Q3 annualized).  These metrics were negatively impacted by a
 one-time operating cost of $317 thousand due to an extended in-line
 test of the recent Grande Prairie Montney well, while awaiting for
 permanent facility license approval. Excluding this one-time cost,
 funds generated from operations would have been $4.2 million, the
 netback would have been $21.34 and the debt to cash flow ratio would
 have been 1.56 to 1.  The well commenced production through permanent
 facilities on October 1, 2010. 


Bellamont anticipates a 2010 average netback of $22.50 to 23.00 per
 Boe.  As a result of the increased oil and liquids weighting, the
 December 2010 netback is anticipated to be in excess of $25.50 per
 Boe.  These assumptions are based on Q4 2010 average WTI of $83.00
 USD/Bbl and $3.75 AECO-C/mcf.  


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 for significant growth in 2011 with further low risk
 drilling in its main core areas of Grimshaw and Grande Prairie.     


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



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

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