RedWater Energy Corp.

RedWater Energy Corp.

January 20, 2011 09:15 ET

RedWater Provides Operational Update

OKOTOKS, ALBERTA--(Marketwire - Jan. 20, 2011) - RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) is pleased to provide an operational update on its 2010 activities.

RedWater drilled 1 well and recompleted 9 wells during 2010, resulting in 10 successful wells, (9.3 net), comprised of 9 oil wells and 1 gas well. As at December 31, 2010, the Company had field production of approximately 130 boepd split 80% oil and 20% gas. The majority of the recompletions occurred during the fourth quarter.

In addition, Redwater recompleted a Leduc Pinnacle Reef oil well at Fairydell-Bon Accord. The well tested and flowed approximately 125 barrels of fluid per day, 47% oil cut, with a resulting oil rate of 59 bopd. The Company expects this well to begin production in February 2011. The 7-29 well, which has 14 meters of oil pay, sets up a prospective multi-leg horizontal drilling program.

RedWater currently has in excess of 32,000 net acres of mineral holdings with an initial drilling inventory of 20+ drilling locations. The majority of which are 100% working interest targeting the Viking, Bruderheim, Ellerslie, Wabamun and Leduc oil. The Company anticipates drilling its first well of 2011 at Redwater in early February. Management plans to release its 2011 capital expenditure budget over the coming weeks.

Business of RedWater Energy Corp.

RedWater Energy Corp. is a junior oil and gas exploration and development company. RedWater is engaged in the acquisition, enhancement and exploration of conventional oil and gas projects in Western Canada with a focus on developing high working interest light oil opportunities. RedWater's core properties are located in Redwater, Red Earth, Westlock, and Fairydell-Bon Accord areas of Alberta.

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RedWater believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, RedWater disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

Neither 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 release.

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