Bellamont Exploration Ltd. Releases 2011 Year End Financial Results

    




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

 CALGARY, March 20, 2012 /CNW/ - Bellamont Exploration Ltd. (the  "Corporation" or "Bellamont")  is pleased to provide a  summary of its financial results for the three months and year ended  December 31, 2011. 

 FINANCIAL AND OPERATING HIGHLIGHTS  

 During year ended December 31, 2011, Bellamont achieved the following: 




        --  Achieved a record production level averaging 2,435 Boe/d for
            the year;
        --  Increased funds flow from operations for the year by 21% over
            2010 to $19.2 million;
        --  Increased oil and liquids production 24% year over year;
        --  Increased oil and liquids weighting to 47.0% of corporate total
            production from 39.0% in 2010;
        --  Increased operating netback to $28.04/Boe for the year, a 22%
            improvement over 2010, which was the result of the increased
            oil and liquids weighting and higher realized crude oil price
            in 2011; and
        --  Increased its undeveloped land position 34.5% from 54,059 to
            72,734 net acres.




 FINANCIAL HIGHLIGHTS 

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

  





                       Three Months Ended December
                                               31, Year Ended December 31,

    ($000s, except per
    share amounts)            2011            2010        2011        2010

    FINANCIAL                                                             

    Petroleum and
    natural gas sales       10,534          10,225      46,766      36,936

    Funds generated
    from operations(1)       4,025           4,511      19,158      15,799

     Per share basic
    and diluted               0.03            0.03        0.14        0.12

    Net loss               (6,586)         (9,609)     (3,826)    (16,196)

     Per share basic
    and diluted             (0.05)          (0.07)      (0.03)      (0.12)

    Net capital
    expenditures (2)         5,211          10,650      22,228      89,758

    Net debt(1)                                         35,832      32,787

    OPERATING                                                             

    Production                                                            

     Crude Oil (Bbls
    per day)                   918             865         978         774

     Natural gas (Mcf
    per day)                 6,646           8,921       7,812       8,576

     Natural gas
    liquids (Bbls per
    day)                       121             169         155         139

     Total (Boe per
    day)                     2,147           2,522       2,435       2,342

    Average realized
    prices                                                                

     Crude Oil ($ per
    Bbl)                     90.13           77.51       87.98       74.10

     Natural gas ($
    per Mcf)                  3.43            3.90        3.97        4.17

     Natural gas
    liquids ($ per
    Bbl)                     73.96           54.64       71.41       58.19

     Average realized
    price ($ per Boe)        53.34           44.08       52.62       43.19

    Netbacks(1) ($ per
    Boe)                                                                  

     Petroleum and
    natural gas sales        53.34           44.08       52.62       43.19

     Royalties              (8.21)          (5.09)      (8.93)      (5.92)

     Operating and
    transportation
    expenditures           (18.97)         (14.63)     (15.65)     (14.33)

     Operating netback       26.16           24.36       28.04       22.94

    Undeveloped land
    holdings                                                              

     Gross acres                                        94,058      75,846

     Net acres                                          72,734      54,059

     Average working
    interest                                               77%         71%

    COMMON SHARES                                                         

    Shares
    outstanding, end
    of period                                                             

     Class A shares                                151,562,699 140,787,699

     Class B shares                                          -   1,012,000

    Weighted average
    shares                                                                

     Basic and diluted
    (3)                143,003,134     140,787,699 141,408,247 134,007,136






  





    (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)    Total net capital expenditures, including acquisitions.

    (3)    For the periods ended March 31, 2010, through to September 30,
           2011, 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 and cash
           flow from operating activities per share.  Class B shares were
           converted to Class A shares on December 14, 2011; they have been
           factored accordingly into the weighted average basic share
           calculation.






  

 SPECIAL SHAREHOLDER MEETING 

 Bellamont has scheduled a special meeting of the Bellamont Shareholders  to approve the previously announced arrangement under the Business Corporations Act (Alberta) (the "Arrangement") involving Bellamont, Storm Resources Ltd.  ("Storm") and the Bellamont Shareholders.  The meeting will be held in  the Plaza Room at the Metropolitan Conference Centre at 333 - 4(th) Avenue S.W., Calgary, Alberta on Thursday, March 22, 2012 at 9:00 a.m.  (Calgary time). 

 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. 

Bellamont Exploration Ltd.


CONTACT:  Steve Moran, President and Chief Executive Officer, [phone]; orTavis Carlson, Vice President Finance and Chief Financial Officer1208, 250- 2nd Street S.W. Calgary, Alberta T2P 0C1Email: [e-mail] 


    

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