BELLAMONT EXPLORATION LTD. PROVIDES AN OPERATIONAL UPDATE ON SUCCESSFUL OIL
DRILLING PROGRAM AND ANNOUNCES INCREASES TO ITS YEAR-END PRODUCTION EXIT
FORECAST

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

CALGARY, Oct. 28 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or "Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to provide an operational update on its recent light oil drilling program and an increase to its year-end production exit forecast.

Highlights include the following:

• Successful drilling at Grimshaw and Grande Prairie will add over 425 bbl/d (net) of light oil production to the Corporation before year end;
• Based on its drilling success, Bellamont has increased its year-end production guidance for the third time in 2010.  The Corporation expects to exit the year averaging 2,900 boe/d (45.0% oil and NGL's) for the month of December, exceeding its previous year-end exit guidance of 2,750 boe/d.

SUCCESSFUL LIGHT OIL DRILLING PROGRAM

Grimshaw Montney Oil Pool

The Corporation has successfully drilled and completed another 2 (2 net) horizontal wells in its Montney oil pool discovery in Grimshaw. Based on test results, Bellamont expects to place the wells on production in November at initial rates of approximately 100 bbl/d each, adding 200 bbl/d of light oil (~30°API) production net to Bellamont. The estimated cost to drill, complete and equip these wells is approximately $2.0 million per well.

Over the three month period from June to August of 2010, the Corporation's average netback at Grimshaw was approximately $40/boe.  Bellamont expects to complete construction of a multi well battery prior to year-end, which will centralize production operations for all seven wells drilled by Bellamont to date and all future wells.   The Corporation expects the battery will result in reduced operating costs, enhancing the netbacks for the existing wells and full cycle economics for future drills.  

Bellamont has commenced a 12 square mile three dimensional seismic program over the pool, which it expects to complete by the end of the year.  The results of program are expected to optimize further development of the pool in 2011. 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 these locations have been assigned reserves by the Corporation's third party independent reserve evaluators.

Grande Prairie Dunvegan Oil Pool

Bellamont successfully drilled and completed 2 (2 net) horizontal wells in its Grande Prairie Dunvegan C light oil pool.  Both wells were completed via multistage fracture stimulations.  Based on test rates, the Corporation expects to place these two wells on production by December at combined rate of 225 Bbl/d of light oil net to Bellamont.  The pool currently produces approximately 70 bbl/d of light oil (36° API) net to Bellamont from four vertical wells and realizes a superior operating netback of approximately $43/Boe.  The estimated cost to drill, complete and equip these wells is approximately $1.75 million per well. The Corporation is also building a centralized battery that will service all of the producing wells in the pool.  The Corporation has an additional five horizontal drilling locations in this pool, none of which have been booked in the Corporation's reserve report. 

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 original oil in place.  To date, Bellamont has only booked approximately 3.0% of the original oil in place estimated by management. 

Grand Prairie Montney Oil Pool

Bellamont's most recent well in this pool, drilled at 3-30-71-4W6 was placed on production on August 14, 2010 and is currently producing in excess of 500 boe/d, comprised of 85 bbl/d of light oil, 35 bbl/d of natural gas liquids and 2.3 mmcf/d of natural gas.   Bellamont has a total of six more drilling locations in this pool, all 100% working interest.  Based on the performance of the existing wells in this pool, management estimates these locations could add up to 2,400 boe/d (first three month average) of productive capacity net to Bellamont over the next several years.  Only two of these locations are currently booked in Bellamont's reserves.   As a result, the Corporation expects this property to be a solid cash flow, reserves and production growth asset for the next several years.

INCREASE TO YEAR END PRODUCTION GUIDANCE

As a result of Bellamont's successful capital program, the Corporation has increased its year-end production guidance to 2900 Boe/d (45.0% oil and liquids) from its previous estimate of 2,750 Boe/d.  The Corporation's current production is approximately 2,600 Boe/d (39.0% oil and liquids).  All of the incremental volumes to be added before year end are light oil and will qualify for the Alberta Government's Horizontal Oil New Well Royalty rate of 5.0%.     

Bellamont has a total of six more drilling locations in this pool, all 100% working interest.  Based on the performance of the existing wells in this pool, management estimates these locations could add up to 2,400 boe/d (first three month average) of productive capacity net to Bellamont over the next several years.  Only one of these locations is currently booked in Bellamont's reserves.  As a result, the Corporation expects this property to be a solid cash flow, reserves and production growth asset for the next several years.

OUTLOOK

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 to significantly grow production, reserves and cash flow on a per share basis over the next 18 to 24 months, funded by its cash flow and available bank lines.  

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.

For further information:

Steve Moran, President and Chief Executive Officer, [phone]; or
Tavis Carlson, Vice President Finance and Chief Financial Officer, [phone]
1208, 250 - 2^nd Street S.W. Calgary, Alberta T2T 5S8
Email: [email protected]
www.bellamont.com