Reef Resources Ltd.
TSX VENTURE : REE

Reef Resources Ltd.

June 01, 2011 08:15 ET

Reef Resources Ltd. Announces Update on Ausable #5 Well Completion

CALGARY, ALBERTA--(Marketwire - June 1, 2011) -

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

Reef Resources Ltd. (TSX VENTURE:REE) ("Reef" or the "Company") anticipates that the completion rig will be moved on site early next week and the completion acid job will be conducted by the end of next week. Flow testing of the well will be conducted upon completion of the acid job. Movement of the drilling rig off the Ausable # 5 well and the subsequent move of the completion rig on the site have been hampered by extremely high rainfall conditions in South Western Ontario.

Reef recently completed the log analysis on its Ausable # 5 well. Log analysis indicates 72 metres net pay of oil and NGL's in the Guelph and A2 formations.

Reef will be announcing test results after completion of Ausable #5 and the details of the next development steps in the Enhanced Oil Recovery - Natural Gas Liquids program in due course. The Ausable reef is currently on production and is generating revenue from the initial 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