BELLAMONT EXPLORATION B V.BMX.B

2011 cap budget + guidance

[mattnat02]

 CALGARY, Dec. 16 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or
"Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to provide a summary of its
2011 capital budget and guidance.
     Bellamont's Board of Directors has approved a $27 million capital budget
for 2011. The vast majority of the budget is planned to be funded out of cash
flow, supplemented by the Corporation's recently expanded operating credit
facility. 
     Approximately 90% of the budget will target low risk light oil drilling
opportunities and will include a total of 13 wells (11.2 net).  The primary
focus will be continued development of the Corporation's Montney oil pools in
Grimshaw, Grande Prairie and Rycroft and Doe Creek oil pools in Saddlehills,
all via horizontal multi-staged fraced wells.  All of these projects are
located in Alberta and will qualify for the new horizontal oil royalty rate of
5.0%.  The expected average operating netback from these drilling locations is
in excess of $50/boe. In total, the Corporation expects over 50% growth in its
oil and natural gas liquids production from 2010.
     Highlights of the 2011 capital budget are as follows:

<<


Capital expenditures                  $27 million

Average yearly production             2,850 Boe/d (47.0% oil and liquids)

Year-end production                   3,250 Boe/d (50.0 % oil and liquids)

Funds generated from operations       $25 million

  - per share                        
.16

Average operating netback             $28/Boe

Year end debt                         $35 million

Oil price (WTI)                       $85.00 (US$)

Natural gas price (AECO)              $3.60 (Can$/GJ)

US/CDN Exchange rate                  0.98


>>
     Bellamont's objective is to achieve superior growth on a per share basis
while maintaining a conservative 1.5 X debt to cash flow.  The planned budget
is expected to deliver annual per share growth of approximately 20.0% on
average daily production and 40% on funds generated from operations, while
ending the year with a 1.2X debt to cash flow. Bellamont's balance sheet
strength will provide it the flexibility to accelerate additional capital
projects, such as initiating water flood projects at its Grimshaw Montney and
Grande Prairie Dunvegan oil pools.  The capital budget does not include
corporate or property acquisitions, which are separately considered and
evaluated.   
     The Corporation has the following active risk management contracts in
place for 2011:
     i)     100 Bbl/d;  January 2011, WTI - CAD, costless collar - $75.00 x 
$87.90; ii)    100 Bbl/d; January 2011 -  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.
     Bellamont has a deep inventory of over $100 million of capital projects
on its lands, which should deliver growth for several years beyond 2011.  
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.