Reef Resources Ltd.

Reef Resources Ltd.

March 30, 2011 16:13 ET

Reef Resources Ltd. Announces Ausable #5 Well Reaches Total Depth With Oil Staining on Core Samples.

CALGARY, ALBERTA--(Marketwire - March 30, 2011) -


Reef Resources Ltd. (TSX VENTURE:REE) ("Reef" or the "Company") reports that drilling of its Ausable # 5 well reached total depth of 615 metres on March 29. A total of 4 cores were taken over a depth of 32 metres with overall good recoveries. Oil staining was observed on the core samples which are currently being analyzed with results to be released in the near future. Data from the core samples will provide information on cap rock integrity and will be utilized, in addition to existing 3D seismic data, to pinpoint further drilling targets for future horizontal wells in the Ausable pinnacle reef.

The Ausable # 5 wellbore is being logged to identify the intersected hydrocarbon zones in the Ausable reef at this location. Results will be analysed and released as soon as it is available.

The Ausable reef is currently on production and is generating revenue from the initial Enhanced Oil Recovery Natural Gas 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
    Reef Resources Ltd.
    Larry Olson
    Vice President, Finance
    (250) 490-3378
    Reef Resources Ltd.
    2020 - 801 6 Ave SW
    Calgary, AB T2P 3W2