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

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.

Three Months Ended						September 30, 2010	June 30,    2010	September 30,  2009
FINANCIAL ($000s, except per share)
Petroleum and natural gas sales						9,696	9,512	2,239
Funds generated from operations^(1)						3,862	4,032	745
	Per basic share					0.03	0.03	0.01
Net loss						(2,004)	(1,887)	(969)
	Per share basic and diluted					(0.01)	(0.01)	(0.02)
Net capital expenditures^(2)						9,736	9,624	3,012
Net debt^(1)/(working capital surplus)						26,452	20,814	(5,132)
OPERATING
Production
	Crude Oil (Bbls per day)					837	773	168
	Natural gas (Mcf per day)					9,554	9,491	3,768
	Natural gas liquids (Bbls per day)					157	160	26
	Total (Boe per day)					2,586	2,515	822
Average realized prices
	Crude Oil ($ per Bbl)					71.68	71.08	68.04
	Natural gas ($ per Mcf)					3.84	4.15	3.02
	Natural gas liquids ($ per Bbl)					55.61	63.85	60.16
	Average realized price ($ per Boe)					40.76	41.57	29.62
Netbacks^(1) ($ per Boe)
	Petroleum and natural gas sales					40.76	41.57	29.62
	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

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