Reef Resources Ltd.

Reef Resources Ltd.

November 20, 2009 15:34 ET

Reef Resources Ltd. Announces Delay in Filling 2009 Annual Audited Financial Statements and Application For MCTO

CALGARY, ALBERTA--(Marketwire - Nov. 20, 2009) -


Reef Resources Ltd. ("Reef" or the "Corporation") (TSX VENTURE:REE) announces that it has determined it will not be able to file its annual audited financial statements, management's discussion and analysis and CEO and CFO certificates for the year ended July 31, 2009, (collectively, the "2009 Annual Audited Financial Statements") by the filing deadline of November 27, 2009 as prescribed by National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102").

The Corporation has held off on completing its audit due to ongoing negotiations to restructure the ownership of its key asset in Ontario in order to fund and further develop its Ontario oil and gas properties. The negotiations to restructure include a cash infusion into the Company and a part of these funds is for the remuneration of the auditor. Reef is confident that the completion of the restructuring plans is imminent. With arrangement for funds now at near completion, Reef anticipates that the audit will commence towards the end of November 2009 and the 2009 Annual Audited Financial Statements can be completed and filed within two months thereafter.

In addition, after conferring with the Alberta Securities Commission (ASC) and upon review of the applicable securities legislation, the Company has requested a Management Cease Trade Order ('MCTO'), pursuant to National Policy 12-203, rather than a Cease Trade Order. Once a MCTO is granted by ASC, the general investing public will still be able to trade Reef shares, however, the Corporation's Chief Executive Officer, Chief Financial Officer and such other directors, officers and persons as determined by the applicable regulatory authorities, will not be able to trade Reef shares.

Until Reef completes the filing of the 2009 Annual Audited Financial Statements, Reef will comply with the alternative information guidelines set out in National Policy 12-203, part 4.3. The guidelines, among other things, require Reef to issue bi-weekly default status reports by way of a news release so long as the 2009 Annual Audited Financial Statements have not been filed.

About Reef Resources Ltd.
Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario, Alberta and Saskatchewan. The Company's strategy is to build shareholder value through internally generated exploration and development drilling as well as through selective acquisitions and mergers.

Forward Looking Statements — This news release contains certain forward-looking statements, which include assumptions with respect to raising funds and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Reef Resources Ltd.
    Arnie Hansen
    President & CEO
    (403) 251-9447
    (403) 251-9553 (FAX)
    Reef Resources Ltd.
    Tariq S. Malik CA
    (403) 975-6242
    (403) 251-9553 (FAX)