Bellamont Exploration Ltd. Announces December 31, 2011 Year End Reserves

    




 /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN  THE UNITED STATES/ 

 CALGARY, Feb. 14, 2012 /CNW/ - Bellamont Exploration Ltd. (the  "Corporation" or "Bellamont")   is pleased to  provide a summary of its 2011 year end reserves evaluation. 

 HIGHLIGHTS 




        --  Increased proved plus probable reserves by 2.4 million Boe (61%
            oil and NGL), an increase of 19% on a per share basis to a
            total of 13.7 million Boe (47.5 oil and NGL) with a net present
            value $168.0 million (@NPV10% before tax);
        --  Reserve replacement was 342% on proved plus probable and 140%
            on proved reserves;
        --  Based on $22.6 million of net capital expenditures in 2011,
            incurred finding, development and acquisitions ("FD&A") costs
            on a proved plus probable basis of $7.46/Boe when excluding
            future development capital and $14.49/Boe when including
            changes in future development capital;
        --  Three year average FD&A costs on a proved plus probable basis
            of $11.34/Boe when excluding future development capital and
            $14.34/Boe, when including changes in future development
            capital; and
        --  Based on an estimated operating netback of approximately
            $28/Boe in 2011, Bellamont's recycle ratio is:
      o 1.9X on 2011 proved plus probable FD&A costs, when including
        changes in future development capital; and
      o 2.0X on the three year average proved plus probable FD&A costs,
        when including future development capital.




 OIL & GAS RESERVES 

 The Corporation's December 31, 2011 reserves were independently  evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") in accordance with  NI 51-101. The reserve information presented herein utilizes GLJ's  January 1, 2012 price forecast and cost assumptions.  Readers are  cautioned that certain financial estimates contained herein are  unaudited. 

  





                                                                Reserves Summary

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

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

    PROVED                                                                                         

      Developed
      Producing         2,180     1,750    12,959    11,289       253       163     4,592     3,794

      Developed
      Non-Producing        27        25       125       116         3         2        51        46

      Undeveloped         877       763     6,498     5,888       152       111     2,112     1,856

    TOTAL PROVED        3,083     2,537    19,582    17,294       409       276     6,755     5,696

    TOTAL PROBABLE      2,481     1,958    23,428    20,806       524       357     6,910      5,782

    TOTAL PROVED
    PLUS
    PROBABLE(3)         5,564     4,495    43,010    38,099       933       633    13,665    11,478






  

  





          Net Present Value of Future Net Revenue of Oil and GasReserves

                    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                                                                

      Developed     136,913   102,584    82,855    69,963           60,856
      Producing                                            

      Developed       1,905     1,443     1,123       895              727
      Non-Producing                                        

      Undeveloped    39,702    23,913    14,251     7,984            3,725

    TOTAL PROVED    178,520   127,940    98,229    78,843           65,309

    TOTAL PROBABLE  199,230   110,528    69,744    47,675           34,338

    TOTAL PROVED                                           
    PLUSPROBABLE(3) 377,749   238,468   167,973   126,518           99,646






  





    (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 2011

                                                               

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

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

    Drilling Extensions and discoveries      960      1,640      2,600

    Infill drilling                          204         95        299

    Technical Revisions                     (56)      (438)      (494)

    Acquisitions Less Dispositions           133        495        628

    Production                             (888)          0      (888)

    December 31, 2011 Closing Balance      6,755      6,910     13,665

                                                               






 2010 FINDING AND DEVELOPMENT COSTS   

 NI 51-101 specifies how finding and development ("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  costs 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 2009 to 2011. 

             




     _____________________________________________________________________
    |                    |              2011     | |   Three Year Average |
    |                    |                       | |      (2009-2011)     |
    |____________________|_______________________|_|______________________|
    |                    |           |Proved Plus| |           |ProvedPlus|
    |                    |TotalProved|   Probable| |TotalProved|  Probable|
    |____________________|___________|___________|_|___________|__________|
    |Exploration and     |           |           | |           |          |
    |Development         |           |           | |           |          |
    |Expenditures (M$)(1)|    $24,426|    $24,426| |    $72,804|   $72,804|
    |____________________|___________|___________|_|___________|__________|
    |Net Acquisitions    |           |           | |           |          |
    |Expenditures(2)     |    -$1,786|   -$1,786 | |    $75,135|   $75,135|
    |____________________|___________|___________|_|___________|__________|
    |                    |           |           | |           |          |
    |____________________|___________|___________|_|___________|__________|
    |Reserve Additions   |           |           | |           |          |
    |(mBoe)(3)           |           |           | |           |          |
    |- Exploration and   |           |           | |           |          |
    |Development (4)     |      1,108|      2,405| |      3,974|     6,457|
    |- Acquisitions (5)  |        133|        628| |      3,860|     6,587|
    |____________________|___________|___________|_|___________|__________|
    |                    |           |           | |           |          |
    |____________________|___________|___________|_|___________|__________|
    |Finding and         |           |           | |           |          |
    |Development Costs   |           |           | |           |          |
    |($/Boe)(6)          |           |           | |           |          |
    |- Excluding FDC     |     $22.05|     $10.16| |     $18.32|    $11.28|
    |- Including FDC     |     $38.11|     $19.01| |     $22.84|    $17.32|
    |____________________|___________|___________|_|___________|__________|
    |                    |           |           | |           |          |
    |____________________|___________|___________|_|___________|__________|
    |Acquisition Costs   |           |           | |           |          |
    |($/Boe)             |     $13.43|     -$2.84| |     $19.47|    $11.41|
    |____________________|___________|___________|_|___________|__________|
    |                    |           |           | |           |          |
    |____________________|___________|___________|_|___________|__________|
    |Finding, Development|           |           | |           |          |
    |and Acquisition     |           |           | |           |          |
    |Costs ($/Boe)       |           |           | |           |          |
    |- Excluding FDC     |     $18.24|      $7.46| |     $18.88|    $11.34|
    |- Including FDC     |     $32.58|     $14.49| |     $21.18|    $14.34|
    |____________________|___________|___________|_|___________|__________|





  





    (1) Exploration and development expenditures exclude capitalized
        administration costs

    (2) Net Acquisitions Expenditures include property acquisitions of $7.5
        million less property dispositions of $9.6 million

    (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

         






 Bellamont continued its track record of reserves growth per share in  2011 despite the removal of 1.34 million Boe (~79% natural gas) from  preliminary estimates, due to a reduced natural gas price forecast at  year end. Since the corporation's first year end in 2006, Bellamont has  grown its reserves at a compound annual growth rate of 36% per share.  Management and the directors would like to thank the staff of Bellamont  for all of their contributions over the last five years.  The growth  rate of the corporation could not have been achieved without their  dedication and hard work. 

 FORWARD LOOKING STATEMENTS 

 This press release contains forward-looking statements and  forward-looking information within the meaning of applicable securities  laws. More particularly and without limitation, this press release  contains forward looking statements and information concerning the  performance characteristics of Bellamont's oil and natural gas  properties, oil and natural gas production levels and the quantity of  oil and natural gas reserves. 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. 

 It should not be assumed that the undiscounted or discounted net present  value of future net revenue attributable to the Corporation's reserves  estimated by GLJ represent the fair market value of those reserves. 

 Oil and Gas Advisory 

 This press release contains disclosure expressed as "Boe". 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. 

   

Bellamont Exploration Ltd.


CONTACT:  Steve Moran, President and Chief Executive Officer, [phone]; orTavis Carlson, Vice President Finance and Chief Financial Officer (403)802-01171208, 250- 2nd Street S.W. Calgary, Alberta T2P 0C1Email: [e-mail] 


    

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