Redcliffe Exploration Inc.
TSX VENTURE : RXP.A
TSX VENTURE : RXP.B

Redcliffe Exploration Inc.

March 24, 2008 17:52 ET

Redcliffe Announces Increase to Credit Facility

CALGARY, ALBERTA--(Marketwire - March 24, 2008) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Redcliffe Exploration Inc. ("Redcliffe" or the "Corporation") (TSX VENTURE:RXP.A) (TSX VENTURE:RXP.B) is pleased to announce that it has received indication from its lender that its revolving demand credit facility will be increased to $12.6 million, escalating to approximately $15 million by September 30, 2008 based upon meeting certain production targets. The revised credit facility is subject to final approval by the lender, and the Corporation expects a formal commitment letter to be signed within two weeks.

The increased credit facility combined with forecasted 2008 cash flows and the $8 million equity financing announced on March 20, 2008 is expected to entirely fund the Corporation's previously announced $17.5 million capital budget for 2008, which includes drilling 11-16 wells primarily in the Peace River Arch area of northwestern Alberta. This capital program follows up on significant recent successes achieved in this basin at Gold Creek, Wapiti and Elmworth. The first of these wells is scheduled to commence drilling late in the second quarter of 2008 at Gold Creek. The remainder of the program will be focused in the second half of 2008.

Redcliffe is a Calgary, Alberta based company engaged in the exploration for, and development and production of conventional crude oil and natural gas reserves in western Canada. Redcliffe's strategy is to build shareholder value through internally generated exploration and development drilling, and through selective acquisitions. Redcliffe's areas of operational focus include the Peace River Arch and Pembina areas of Alberta.

Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.

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

Contact Information

  • Redcliffe Exploration Inc.
    Daryl H. Connolly
    President & CEO
    (403) 539-8440
    (403) 539-8433 (FAX)
    Email: dconnolly@redcliffe.ca
    or
    Redcliffe Exploration Inc.
    George Gramatke
    Vice President, Finance & CFO
    (403) 539-8442
    (403) 539-8433 (FAX)
    Email: ggramatke@redcliffe.ca