Petro-Reef Resources Ltd.

Petro-Reef Resources Ltd.

October 07, 2010 09:00 ET

Petro-Reef Resources Ltd. Announces Production Growth and Drilling Activity

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) - Petro-Reef Resources Ltd. (TSX VENTURE:PER),

Petro-Reef is pleased to announce that the amine facility discussed in the September 27, 2010 media release was brought onstream as scheduled and has resulted in a substantial increase in production.

Since being brought onstream on October 4, 2010, Petro-Reef's discovery oil well has been producing at an estimated rate of 300 boe/d, including 150 bbls/d of crude oil (100% working interest). As a result of the addition of this well, Petro-Reef's current production is estimated at 1,000 boe/d, including an estimated 250 bbls/d of crude oil.

Based on the success of the discovery well, Petro-Reef drilled and completed a follow-up location (94% working interest) targeting the same oil zone earlier this week located one kilometer from the discovery well. Production casing has been set and Petro-Reef intends to commence testing operations next week. Based on the preliminary analysis, the follow-up location appears to be structurally higher as compared to the discovery well.

As a result of the oil drilling success, Petro-Reef has identified several follow-up locations, two of which are anticipated to be drilled by year end.

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Reference is made to barrels of oil equivalent (boe). Barrels of oil equivalent may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a boe conversion ratio for natural gas of 6 Mcf : 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Petro-Reef Resources Ltd.
    John Pantazopoulos
    Vice-President Finance and CFO
    (403) 265-6444
    (403) 264-1348 (FAX)
    Petro-Reef Resources Ltd.
    970, 10655 Southport Road S.W.
    Calgary, Alberta T2W 4Y1