Bellamont loses $1.54-million in Q2 2009Here comes share dillution!
Bellamont loses $1.54-million in Q2 2009
Bellamont Exploration Ltd (C:BMX)
Shares Issued 44,780,781
Last CloseBMX.A 8/26/2009 $0.68
Thursday August 27 2009 - News Release
Mr. Steve Moran reports
BELLAMONT EXPLORATION LTD. ANNOUNCES SECOND QUARTER 2009 RESULTS; A $6.2MILLION BOUGHT DEAL FINANCING; AND AN INCREASE TO ITS CAPITAL BUDGET ANDPRODUCTION GUIDANCE
Bellamont Exploration Ltd. has released a summary of its 2009 second-quarterresults, together with the announcement of a $6.2-million bought deal financingand increase to its capital budget and production guidance.
Second-quarter highlights:
- Increased average production for the 10th consecutive quarter to 867 Boe/d an increase of 21% from Q1 2009 and 133% from Q2 2008;
- Funds generated from operations before the bad debts provision of $520,000 was $914,000;
- Reduced operating expenses on a per Boe basis by 10.8% from Q1 2009 and 19.1% from the 2008 full year average;
- Incurred capital expenditures of $1.7 million;
- Purchase 6 sections of land in the Valhalla area;
- Conducted 3 (3 net) workovers and tie-in of 1 (1 net) natural gas well that was recompleted in Q1 2009;
- Exited the quarter with $847,000 working capital surplus.
Bought deal financing
The corporation is pleased to announce that it has entered into a bought dealfinancing agreement with a syndicate of underwriters led by FirstEnergy CapitalCorp. and including GMP Securities L.P., RBC Capital Markets and National BankFinancial (collectively, the "Underwriters") to issue 10,000,000 Class A sharesat a price of $0.62 per share for gross proceeds of $6,200,000 (the "Offering").In addition, the Underwriters have been granted an over-allotment option (whichmay be exercised prior to the closing of the Offering or for 30 days thereafter)to purchase an additional 1,500,000 Class A Shares at a price of $0.62 per ClassA share for further gross proceeds of $930,000, which if fully exercised, wouldincrease the gross proceeds from the Offering to $7,130,000.
The Class A Shares shall be offered in all provinces of Canada (other thanQuebec) by way of short form prospectus, and in the U.S. on a private placementbasis pursuant to exemptions from registration requirements. The closing of theoffering is expected to occur on September 24, 2009, and is subject to certainconditions including the approval of the TSX Venture Exchange and the receipt ofnecessary regulatory approvals