2010-03-11-2010-01-19

To acquire company with assets in Peace River Arch, AB, gaining 850 BOE/d.

Bellamont Exploration Ltd., Calgary, (Toronto Venture: BMX) plans to acquire a privately held company with properties complementing its Alberta assets for approximately C$52.9 million.

The purchase price, which includes C$1.6 million in assumed debt, will be paid through a combination of cash and class A shares. Bellamont will issue C$2.76 in cash per share of the private company, up to C$20 million; or 3.43 class A shares per share of the private company, up to approximately 39.9 million shares.

The acquired company has producing properties in the Pembina Cardium fairway and in Bellamont's Peace River Arch core area, which targets the Montney and Dunvegan formations.

The company has proved plus probable reserves of approximately 4.03 million barrels of oil equivalent (68% gas) for an acquisition price of C$13.13 proved barrel. The reserve-life index is 13 years.

Current production is approximately 850 barrels of oil equivalent per day (70% gas) with an estimated 110 barrels of Cardium light oil per day currently being tied in. More than 90% of production is operated.

In conjunction with the acquisition, Bellamont will issue 18.75 million subscription receipts at C$0.80 per receipt through a bought-deal financing for proceeds of approximately C$15 million. The syndicate of underwriters is led by FirstEnergy Capital Corp. and includes RBCCapital Markets, GMPSecurities LP, National Bank Financial, Haywood Securities Inc. and Research Capital Corp.

The board, management and shareholders representing approximately 57% of the private company have agreed to vote for the acquisition, which was expected to close in mid-February.

FirstEnergy Capital is financial advisor and National Bank Financial Inc. is strategic advisor to Bellamont. Peters & Co. Ltd. is financial advisor to the company to be acquired.