Petro-Reef Resources Ltd.
TSX VENTURE : PER

Petro-Reef Resources Ltd.

July 13, 2009 08:30 ET

Petro-Reef Resources Ltd. Arranges $2.0mm Flow-Through Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - July 13, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES

Petro-Reef Resources Ltd. (TSX VENTURE:PER) ("Petro-Reef" or the "Corporation") is pleased to announce that it has engaged PI Financial Corp. (the "Agent") to act as lead agent on a best-efforts brokered private placement of up to 6,670,000 flow-through units ("FT Units") at a price of $0.30 per FT Unit for gross proceeds of up to $2,001,000 (the "Offering"). Each FT Unit will consist of one flow-through share and one transferable common share purchase warrant which will be exercisable into one additional non flow-through common share for a period of 1-year from the closing date of the Offering, at a price of $0.40 per share.

Proceeds from the Offering will be used to fund the drilling of Petro-Reef's high impact exploration locations on its Northern acreage in its core area of Alexander. Petro-Reef utilized proprietary 3-D seismic to identify four exploration locations all of which are expected to have multi-zone potential both in oil and natural gas. Petro-Reef holds a 100% working interest in all of the exploration acreage in its Northern acreage. The flow-through funds raised from the Offering will constitute Canadian Exploration Expenses (as defined in the Income Tax Act) and will be renounced for the 2009 taxation year.

As consideration for acting as agent, the Agent will receive a commission of 8.0% of the gross proceeds of the Offering, payable in cash or units at the election of the Agents. The commission units will have the same terms as the FT Units of the Offering except that they shall be non flow-through.

Petro-Reef anticipates the Offering will close in early August and expects to commence drilling of the exploration wells in early September. Closing of the Offering is subject to a number of conditions, including the receipt of all necessary corporate and regulatory approvals, including that of the TSX Venture Exchange.

Petro-Reef Resources Ltd. is a Calgary-based junior oil and gas company focused on petroleum and natural gas lease acquisition and exploration, and development of crude oil and natural gas properties in Alberta, Canada.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This press release contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performances or achievements of the Company to be materially different from the results, performances or expectations implied by these forward looking statements.

Neither the 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 news release.

Contact Information

  • Petro-Reef Resources Ltd.
    John Pantazopoulos
    Vice-President Finance and CFO
    (403) 265-6444
    (403) 264-1348 (FAX)
    or
    Petro-Reef Resources Ltd.
    970, 10655 Southport Road S.W.
    Calgary, Alberta T2W 4Y1
    Email: info@petro-reef.ca
    Website: www.petro-reef.ca