Reef Resources Ltd.
TSX VENTURE : REE

Reef Resources Ltd.

February 02, 2011 09:00 ET

Reef Resources Ltd. Achieves Oil Production Revenue as Planned

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2011) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

Reef Resources Ltd. (TSX VENTURE:REE) ("Reef" or the "Company") reports that for the months of October, November and December it achieved gross revenues of $70,170 from the initial phase of the Ausable Enhanced Oil Recovery Natural Gas Recycling program. Oil and petroleum condensates production for the quarter totalled 971 barrels. Severe winter conditions hampered production during this period and the Company continues to optimize its producing wells and surface equipment to increase production.

Arnie Hansen, President & CEO said "One of our objectives for the last quarter of 2010 was to start up production and achieve revenue by executing the initial natural gas recycling program. We have done that and continue to execute projects as planned for Q1 2011.

Reef's objectives for Q1 2011 include:

  • Drill, and core a 615 metre vertical well (Ausable #5) with spudding expected during the second week of February 2011. This well is intended to not only increase overall production, but assist in providing valuable information for the gas storage asset plus confirm drilling locations for the next phase of the Natural Gas Recycling and Enhanced Oil Recovery ("EOR") program;
  • Fish and recover stage frac tools that have impeded production from the Ausable # 2 horizontal well. The drilling rig will be utilized for this operation once the Ausable #5 is drilled.

Footnote; The Company's Ontario asset has gas storage rights, gas re-injection permit for gas recycle, NGL recovery, enhanced oil recovery and arbitrage. A key component of Reef's Ontario strategy is to identify and exploit undervalued prospects in the Ontario basin by utilizing the company's 23,500 acres of proprietary 3D seismic. In addition to its Ontario Properties, Reef has identified multiple oil and gas acquisition and development opportunities throughout Canada.

Forward Looking Statements — This news release contains certain forward-looking statements, which include assumptions with respect to the valuation of Reef's reserves, funds raised from a financing and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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.

Contact Information

  • Reef Resources Ltd.
    Arnie Hansen
    President & CEO
    (403) 251-9447
    or
    Reef Resources Ltd.
    Larry Olson
    Vice President, Finance
    (250) 460-2640