Bellamont Exploration Ltd.
TSX VENTURE : BMX.A
TSX VENTURE : BMX.B

Bellamont Exploration Ltd.

November 27, 2007 08:25 ET

Bellamont Exploration Announces $5 Million Financing

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) -

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.

Bellamont Exploration Ltd. ("Bellamont" or "the Company") (TSX VENTURE:BMX.A)(TSX VENTURE:BMX.B) is pleased to announce that it has entered into a financing agreement with a syndicate of agents led by GMP Securities L.P. and including Blackmont Capital Inc., FirstEnergy Capital Corp. and Tristone Capital Inc. to issue on a private placement basis in the capital of the Company Class A shares ("Class A Shares") at a price of $0.80 per Class A Share and flow through Class A shares ("Flow Through Class A Shares") at a price of $0.90 per Flow Through Class A Share. The aggregate gross proceeds of the Class A Shares and the Flow Through Class A Shares will be approximately $5 million, with a maximum of $2.5 million issued pursuant to the sale of Flow Though Class A Shares.

The Class A shares issued pursuant to the private placement will be subject to a four month hold from the date of closing of the private placement. Closing of the private placement is scheduled for December 13, 2007. The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals.

Proceeds from this offering will be used to expand Bellamont's development and exploration of its 40 drilling locations in the Peace River Arch and its previously announced southeast Saskatchewan farm in agreement, and if deemed warranted by Bellamont's Board of Directors to allocate a portion of the funds to future strategic acquisition opportunities.

In southeast Saskatchewan, to date, Bellamont has identified 12 drilling leads on the Farmor's existing seismic database, two of which of multi-zonal potential in the Red River and Duperow formations. Bellamont has recently concluded the field operations for its 82 square mile ("3D") seismic program pursuant to the Farm-in Agreement. Bellamont expects all of the new 3D seismic data to be processed and ready for interpretation by the second week of December.

The southeast Saskatchewan farm-in lands are prospective in five separate zones which include the Birdbear, Duperow, Winnipegosis, Red River and Winnipeg. All of these prospective formations are light oil prone (35-37 degrees API) and would be eligible for the Saskatchewan Crown royalty holiday for deep vertical oil wells. Each of these formations is potentially prolific.

Bellamont is an emerging 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 presently has 25,770,532 Class A shares and 1,012,000 Class B shares outstanding.

This document contains forward-looking statements. More particularly, this document contains statements concerning the Corporation's future production levels and planned exploration, development and acquisition activities.

The forward-looking statements are based on certain key expectations and assumptions made by Bellamont, including expectations and assumptions concerning prevailing commodity prices and exchange rates, availability and cost of labour and services, the timing of receipt of regulatory approvals, the performance of existing wells, the success obtained in drilling new wells, the performance of new wells and the sufficiency of budgeted capital expenditures in carrying out the Corporation's planned activities.

Although Bellamont believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Bellamont can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general (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 and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These risks are set out in more detail in the Corporation's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this press 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.

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. THE SHARES OFFERED WILL NOT BE AND HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENT.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Bellamont Exploration Ltd.
    Steve Moran
    President and Chief Executive Officer
    (403) 802-6840
    or
    Bellamont Exploration Ltd.
    Danny Geremia
    Vice President Finance and Chief Financial Officer
    (403) 802-6840
    or
    Bellamont Exploration Ltd.
    Suite 200, 1324 - 17th Avenue S.W.
    Calgary, Alberta T2T 5S8
    (403) 802-1315 (FAX)
    Website: www.bellamont.com