Petro-Reef Resources Ltd.
TSX VENTURE : PER

Petro-Reef Resources Ltd.

March 29, 2005 17:27 ET

Petro-Reef Resources Ltd.: News Release


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PETRO-REEF RESOURCES LTD.

TSX VENTURE SYMBOL: PER

MARCH 29, 2005 - 17:27 ET

Petro-Reef Resources Ltd.: News Release

CALGARY, ALBERTA--(CCNMatthews - March 29, 2005) - Petro-Reef Resources
Ltd. (TSX VENTURE:PER) is pleased to announce that it has completed its
initial phase of land purchases in the Alexander-Qui Barre area. The
total gross land purchased in the area to-date is 20.33125 sections
(13012 acres) in which the company has an average working interest of
35.67 percent or 7.25 net sections (4641.15 acres).

A six square mile 3-D seismic program was shot in March, 2005 contiguous
with a previously announced eight (8) square mile 3-D seismic program
shot in 2004.

The company has drilled seven (7) gross wells to-date in the
Alexander-Qui Barre Area and is currently producing approximately 2925
MCF/D from four (4) wells (1073 MCF/D net to Petro-Reef or 179 barrels
of oil equivalent). Three other wells are waiting to be completed and/or
tied-in.

Total net production to the company was approximately 1500 MCF/D or 250
barrels of oil equivalent for all its properties. Only one (1) well has
been drilled to-date on the 3-D seismic.

With the fourteen (14) square miles of 3-D seismic as well as
approximately 30 miles of 2-D seismic which was shot or purchased by the
company, and the first seven (7) wells drilled to-date, eleven (11)
potential well locations have been picked to be drilled for multi-zone
sweet gas and/or oil.

This drilling program is anticipated to start after spring break-up. All
the wells will be operated by Petro-Reef Resources Ltd.

This News Release is available for review on the SEDAR website
(www.sedar.com).

Petro-Reef Resources Ltd. is a Calgary based, emerging oil and gas
exploration and development company focused on the Western Canadian
Sedimentary Basin where it is engaged in the production and exploration
of natural gas and oil reserves. The company trades on the TSX Venture
Exchange under the symbol "PER".

Common Shares Outstanding 17,738,937

Certain statements herein may not be historical facts and may be
"forward-looking statements". Such statements are based on management's
beliefs, as well as assumptions made by information currently available
to management. Forward-looking statements include those preceded by the
words "estimate", "will", or words of similar expressions, and are
subject to risks, uncertainties and other factors that could cause
results to differ materially from expected results. Reserve estimation
is an interpretive process based on drilling results and past experience
as well as estimates of reservoir characteristics and flow rates,
prices, costs of extraction and processing, capital expenditures and
many other factors. Actual quality and characteristics of oil and gas
accumulations cannot be known.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Petro-Reef Resources Ltd.
    Ted Donhuysen
    V.P. Exploration & Production, C.O.O.
    (403) 265-6444
    (403) 264-1348 (FAX)
    Email: petroreef@shawcable.com
    or
    Petro-Reef Resources Ltd.
    2020, 800 - 5th Avenue S.W.
    Calgary, Alberta T2P 3T6
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.