Petro-Reef Resources Ltd. - Operations Update

CALGARY, ALBERTA--(Marketwire - May 26, 2011) - Further to the press release of January 10, 2011, Petro-Reef ("the Company") (TSX VENTURE:PER) has received regulatory approval to tie-in a well at 8-7-56-26W4M (Petro-Reef 100% WI). The well was placed on stream May 1, 2011 and is producing as a gas well at a rate of 16.5e³m³/d (581MCF/d) from a new Lower Detrital Zone.

In addition, further to the press releases of February 2, 2011 and March 3, 2011, Petro-Reef licensed and drilled two (2) wells before spring break-up targeting the same prolific Upper Detrital oil zone. One of the wells is a twin well to a well abandoned at 00/10-7-56-26W4M. Petro-Reef set production casing and the well is currently being completed. The second well at 13-7-56-26W4M was perforated and tested at a daily rate of 55 barrels of oil per day. Initial results indicate partial restricted flow rates due to mud damage, and the well will be fracture stimulated. Petro-Reef has a 79% interest in these two (2) wells. The Company anticipates an on-stream date for these wells to be beginning to mid-July 2011.

Petro-Reef has also licensed a new well at 9-12-56-27W4M which is to be drilled in early Q3 and is planning to license a new well at 7-7-56-26W4M in the next week.

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.