RedWater Energy Corp.

RedWater Energy Corp.

February 08, 2011 09:15 ET

RedWater to Drill 6 Wells and Recomplete 9 Wells at RedWater and Westlock

OKOTOKS, ALBERTA--(Marketwire - Feb. 8, 2011) - RedWater Energy Corp. ("RedWater" or the "Company") (TSX VENTURE:RED) is pleased to provide its Capital Expenditure Budget and Production Targets for 2011.

RedWater's Board of Directors has approved an initial 2011 capital budget of $3.0 million. Funds of $2.7 million will be allocated to the drilling of 6.0 and the recompletion of 9.0 net oil wells at Redwater and Westlock. An additional $300,000 will be allocated to development work associated with horizontal drilling projects, including seismic and geological analysis, at Redwater, Westlock and Fairydell-Bon Accord. Redwater currently has available capital of $3.9 million consisting of $3.4 million cash and a bank operating line of $500,000.

Production levels for 2011, with this budget, targets average production for the year of 200-250 boepd and exit production of 400 boepd. Operating income for 2011 will be focused towards the acceleration of the Company's conventional and horizontal light oil drilling programs.

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, 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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