Bellamont Exploration loses $508,150 in Q3 2008
Bellamont Exploration Ltd (C:BMX)
Shares Issued 44,649,115
Last CloseBMX.A 11/26/2008 $0.26
Thursday November 27 2008 - News Release
Mr. Steve Moran reports
BELLAMONT EXPLORATION LTD. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THETHREE MONTH PERIOD ENDING SEPTEMBER 30, 2008
Bellamont Exploration Ltd. has released its financial and operating resultsfor the three months ended Sept. 30, 2008. In addition, the corporation advisestoday that it has filed its financial statements, and related management'sdiscussion and analysis for the three months ended Sept. 30, 2008, with Canadiansecurities regulatory authorities.
Bellamont 2008 third quarter highlights:
- Drilled four wells (1.6 net), resulting in two gas wells (0.8 net), one oil well (0.4 net) and one dry hole (0.4 net), located in the Whitelaw and Valhalla areas of the corporation's core Peace River Arch focus area;
- During the quarter, had capital expenditures totalling $3.3-million related almost exclusively toward drilling, completions and equipping of new wells;
- Production averaged 548 barrels of oil equivalent per day for the quarter in comparison with the second quarter 2007 production average of 91 barrels of oil equivalent per day. Current production is now in excess of 600 barrels of oil equivalent per day.
- Increased the bad debts provision by $385,000 to $560,000 or 50 per cent of the total receivables outstanding from SemCanada Energy Co. and SemCanada Crude Co., which filed for CCAA protection in July, 2008;
- Ended the quarter with a working capital surplus of $9.1-million.
Subsequent to the third quarter, on Oct. 8, 2008, acquired 4.5 sections(2,280 acres) of land and production (approximately 50 barrels of oil equivalentper day) in its core Peace River Arch focus area, thereby increasing thecorporation's undeveloped land to 62,406 (38,706 net).
THIRD QUARTER 2008 FINANCIAL HIGHLIGHTS
Three months ended Nine months ended
Sept. 30, Sept. 30,
2008 2007 2008 2007
Petroleum and
natural gas sales $ 3,463,349 $ 552,290 $ 8,212,318 $ 995,763
Funds generated (used)
in operations 1,013,686 10,318 3,042,624 (478,284)
Per share basic
and diluted 0.02 - 0.06 (0.02)
Net (loss) and
comprehensive (loss) (508,150) (163,493) (673,913) (800,644)
Per share basic
and diluted (0.01) (0.01) (0.01) (0.03)
Operating
Production
Liquids (bbl per day) 170 62 136 34
Natural gas (mcf per day) 2,267 177 1,714 177
Barrels of oil equivalent
(boe per day, 6:1) 548 91 421 63
Average realized price
Crude oil ($ per Bbl) 115.08 83.29 110.78 74.71
Natural gas ($ per mcf) 7.92 5.04 8.74 6.46
Natural gas liquids
($ per bbl) 120.93 64.69 109.99 57.09
Barrels of oil equivalent
($ per boe 6:1) 68.66 65.87 71.18 57.76
Netback per Boe (6:1) ($)
Petroleum and natural gas
sales 68.66 65.87 71.18 57.76
Royalties (15.21) (15.05) (12.77) (12.16)
Operating expenses (17.76) (24.68) (16.93) (30.47)
Transportation expenses (1.99) (0.95) (2.25) (2.16)
Operating netback 33.70 25.19 39.23 12.97
Outlook
The past several months have seen material and remarkable pressure on theglobal economy, which has led to significant declines in commodity prices andweakness in capital/equity markets. As a result of the foregoing factors,Bellamont believes it prudent to defer the majority of the capital projectsplanned for the fourth quarter of 2008 into 2009.
The corporation continues to enjoy a strong balance sheet with currentpositive working capital of approximately $5.5-million and an undrawn$7.25-million line of credit. Although the corporation has not formally approveda 2009 budget, Bellamont forecasts financing its capital expenditures to the endof first quarter of 2009 primarily out of cash flow; thereby preserving itspositive working capital while aggressively pursuing acquisition opportunities.Bellamont's financial position places it in a unique position relative to itspeers and gives it the ability to pursue opportunities for lands, drilling andacquisitions at a time when for the cost of these opportunities has beendeclining and are more widely available.
Bellamont is currently producing in excess of 600 barrels of oil equivalentper day, comprising approximately 70 per cent natural gas. The corporation hasapproximately 100 barrels of oil equivalent per day (75 per cent natural gas)behind pipe awaiting tie-in and anticipates such volumes on production prior tothe year-end, though 75 barrels of oil equivalent per day is non-operated andthe timing on such is beyond Bellamont's immediate control. As a result of thecorporation's decision to defer capital to 2009, it has lowered its year-endproduction guidance to 700 barrels of oil equivalent per day.
© 2008 Canjex Publishing Ltd.