Reef Resources Ltd.
TSX VENTURE : REE

Reef Resources Ltd.

April 13, 2011 09:30 ET

Reef Resources Ltd. Announces 72 Metres of Net Pay on the Ausable #5 Well

CALGARY, ALBERTA--(Marketwire - April 13, 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 petrophysical analysis has been finalized on its Ausable # 5 well. Log analysis indicates 72 metres net pay of oil, natural gas liquids (NGL's) and natural gas in the Guelph and A2 formations in Ontario, Canada.

Log analysis in the Guelph indicates net oil and gas liquids pay zone is 57 metres with porosity averaging 9.7%. Evidence of hydrocarbons was evident on core and logs throughout the Guelph formation.

Additionally, the shallower A2 formation was identified as a potential gas producer with net pay of 15 meters and 7% porosity.

The Company will now undertake a work program in order to complete the hole and flow test the well, with the intent of bringing the Ausable #5 well on production.

A comprehensive core analysis will be conducted in the near future to determine cap rock integrity for future gas storage, permeability of the producing zones and provide useful information for the upcoming completion program.

Arnie Hansen, President, stated "The Ausable #5 well has exceeded our expectations. The log and core results confirm the notion the Ausable reef is an underutilized and undervalued asset. Findings on the Ausable #5 well confirm the Company logic to accelerate the Enhanced Oil Recovery Oil (EOR) and Natural Gas Liquids program".

Reef will be announcing test results after completion and next development steps in the EOR, NGL program.

The Ausable reef is currently on production and is generating revenue from the initial Enhanced Oil Recovery Natural Gas Liquids Recycling program which commenced in 4th quarter 2010.

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
    2020 – 801 6 Ave SW
    Calgary, AB T2P 3W2

    Reef Resources Ltd.
    Larry Olson
    Vice President, Finance
    (250) 490-3378