BELLAMONT EXPLORATION LTD. ANNOUNCES AN OPERATIONAL UPDATE AT ITS GRIMSHAW MONTNEY OIL POOL AND AN UNDEVELOPED LAND ACQUISITION
09 Mayo 2011 - 6:30AM
PR Newswire (Canada)
CALGARY, May 9 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ CALGARY, May 9
/CNW/ - Bellamont Exploration Ltd. (the "Corporation" or
"Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to provide an
operational update at the Corporation's Grimshaw Montney oil pool.
In addition, Bellamont is pleased to announce a new oil property
acquisition and establishment of a new core area. Grimshaw Montney
Oil Pool In the first quarter of 2011, Bellamont successfully
drilled and completed 2 (1.75 net) additional horizontal wells at
its Grimshaw Triassic C Montney oil pool at 13-28-83-23W5M well
(the "13-28") and 16-29-83-23W5M well (the "16-29"). Both
wells were placed on production on April 7(th), 2011. To
date, the 16-29 (Bellamont 100% working interest) has produced an
average daily rate of approximately 125 bbl/d of oil. The
13-28 (Bellamont 75% working interest) was facility restricted
until May 2(nd), but is now also producing approximately 125 bbl/d.
The economics of Grimshaw are excellent. The relatively
shallow (~900 metres) vertical depth results in all-in cost per
horizontal well of approximately $2.0 million. The average IP
rate (first 30 days) for the 8 horizontal wells in the pool has
been in excess of 110 bbl/d, resulting in on-stream costs of less
than $20,000 per bbl/d. New wells qualify for a 5.0% royalty for
the first 50,000 Boe or 18 months of production. Based on an
oil price of $95 WTI (USD), new wells are expected to achieve a
netback in excess of $60.00/boe, yielding a recycle ratio in excess
of 5 times. Bellamont has a total of 38 (~34 net) additional
horizontal locations identified in this pool. Only three of
these locations were booked in the Corporation's reserve report at
the end of 2010. Bellamont will be drilling three 100%
working interest infill wells in the pool immediately following
spring breakup which should add in excess of 300 bbl/d of oil to
Bellamont by August. Bellamont is planning to accelerate
further delineation and development of this pool in 2011 with
continued success. Undeveloped Land Acquisition and New Core Area
Bellamont has signed an agreement with a private company to acquire
a property in the Birch Area of British Columbia. The
property directly offsets a light (38° API) oil pool producing from
the Baldonnel formation. The vendor's independent reserves
evaluator has assigned reserves to the acquired property of 0.6
million BOE, with a December 31, 2010 value of $5.7 million
(NPV@10%BT). The reserve report included four 100% Baldonnel
drilling locations. In total, the property includes 25 net
sections of lands, with an average working interest of
approximately 90%. The purchase price for the transaction was $3.5
million and is expected to close on May 10, 2011. The wells in the
offsetting pool have produced at an average initial rate of 150
boe/d (125 bbl/d of oil) and are expected to produce 139 mboe per
well. The pool was largely developed in the mid 1990's via short
reach horizontal wells that were not fracture stimulated. By
utilizing modern drilling and completion techniques, Bellamont
believes the potential exists to improve the initial rate on new
wells to in excess of 400 boe/d (300 bbl/d oil). Bellamont
plans to drill wells with up to twice the horizontal length as the
offset wells and complete them with multi-staged fracture
stimulations. Bellamont has identified 12 such drilling
locations on lands immediately offsetting the existing pool and
expects to drill its first well in the fall of 2011. If Bellamont
is successful implementing modern drilling and completion
technology at Birch, the potential exists to extend the existing
pool onto a large contiguous block of lands acquired in this
transaction. The Corporation estimates the majority of the 25
net sections of land being acquired contain Discovered Petroleum
Initially-In-Place equivalent 4 to 6 million barrels of light oil
per section. Success in extending this pool would add
significantly to the Corporation's light oil drilling inventory and
could result in a repeatable light oil resource play for Bellamont.
Bellamont has now compiled a land position of 47 sections (36 net)
in the Birch and Stoddart areas of British Columbia.
Bellamont expects this region to become a new core area for
Corporation. In addition to light oil in the Baldonnel
Formation, Bellamont's lands are prospective for liquids rich
natural gas in the Montney and Doig Formations. Other area
operators have reported success drilling horizontal wells completed
with multi-staged fracture stimulations and as a result, activity
in this region has increased. Bellamont is well positioned
on these emerging plays. ANNUAL MEETING Bellamont's annual
shareholder meeting will be held at 3:00 p.m. on June 2, 2011
in the Livingston Place Conference Centre, Livingstone Place, South
Tower, 2(nd) Floor, 222 3(rd) Avenue S.W., Calgary Alberta. OUTLOOK
The Corporation has a drilling inventory consisting of 137 (123
net) drilling locations, only 19 (gross) of which are booked in the
2010 year end reserve report. The majority of the
Corporation's drilling inventory, 101 net locations in total,
target light oil and are lower risk and developmental in
nature. This drilling inventory will provide Bellamont with a
solid platform for growth over the next several years. With a 2011
capital program heavily weighted to drilling oil targets, a
conservatively managed balance sheet and solid cash flow base,
Bellamont is well set up for continued per share growth. Investors
are encouraged to view an updated version of Bellamont's corporate
presentation on its web page at www.bellamont.com. 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 areas of Alberta and British Columbia.
Bellamont has a strong technically focused management team that
internally generates and develops high quality large resource based
prospects. In addition, the Corporation has compiled an
undeveloped land inventory of 75,873 net acres. 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. Discovered Petroleum Initially‐In‐Place (DPIIP) is equivalent
to Original Oil In Place (OOIP). DPIIP, also known as a
"discovered resource", is defined as that quantity of petroleum
that is estimated, as of a given date, to be contained in known
accumulations prior to production. The recoverable portion of
discovered petroleum initially‐in‐place includes production,
reserves and contingent resources; the remainder is
unrecoverable. A recovery project cannot be defined for this
volume of discovered petroleum initially‐in‐place at this time.
There is no certainty that it will be commercially viable to
produce any portion of the resources. The TSX Venture Exchange has
not reviewed and does not accept 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. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/May2011/09/c2512.html p
Steve Moran, President and Chief Executive Officer, (403) 802-1355;
orbr/ Tavis Carlson, Vice President Finance and Chief Financial
Officerbr/ 1208, 250- 2supnd/sup Street S.W. Calgary, Alberta T2P
0C1br/ Email: a
href="mailto:info@bellamont.com"info@bellamont.com/abr/ a
href="http://www.bellamont.com"www.bellamont.com/a /p
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