Reliable Energy Ltd.
TSX VENTURE : REL

Reliable Energy Ltd.

November 29, 2011 18:14 ET

Reliable Energy Achieves Milestone of 1,100 BOPD, Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Reliable Energy Ltd. ("Reliable" or the "Company") (TSX VENTURE:REL) provides the following operations update.

OPERATIONS UPDATE

  • Reliable is pleased to report that net oil production is currently 1,100 bopd, an increase of almost 31% from the third quarter exit rate, while average quarterly production to date in the fourth quarter is 988 bopd, compared with 679 bopd in the third quarter, an increase of 46%.
  • To date, the Company has completed the drilling of all 11 (8.3 net) horizontal wells that comprised the second half of its 2011 drilling program with 2 (1.5 net) horizontal wells currently awaiting completion operations.
  • Reliable has also participated in the drilling of 2 (0.3 net) non-operated wells in the Kirkella area that are now awaiting completion operations which are expected during December 2011.

During November, there was a significant Crown land sale in the Elkhorn, East Manson and Kirkella areas directly offsetting Reliable's lands. Sale prices increased sharply over previous sales with the top price reaching in excess of $4,700 per hectare. This sale is indicative of the recent increase in activity and competitiveness in this part of Manitoba and to the increasing value of Reliable's existing land base.

For 2012, Reliable expects to commence operations in early January with drilling activity for the year anticipated to be along the same lines as 2011. In addition to the development and exploration program, Reliable will be commencing preliminary work on a water-flood pilot project that we believe will greatly enhance the production and reserve profile of wells in the area.

ABOUT RELIABLE

Reliable Energy Ltd. is an Alberta based junior oil company with a strong exploration component that commenced operations in 2005. Reliable's activities are primarily focused in the Kirkella area situated on the Saskatchewan/Manitoba border where it holds over 90,000 net acres of undeveloped lands. Kirkella is a Bakken oil rich prospect area that possesses high operating margins and multiple formation potential. The Company has an inventory of approximately 450 net horizontal drilling locations identified in the Kirkella region. Reliable's second focus area is in Blaine County, Montana, where the Company holds almost 100,000 net undeveloped acres on an emerging Bakken oil play.

Reliable's goal is to become a low cost, value added growth company. The Company's strategy is to concentrate on exploration and development drilling activities in oil rich core areas. Reliable will continue to build on its highly prospective light oil land position in Manitoba/Saskatchewan and Montana and, through prudent development, add to its reserves and production base with the objective of providing sustained future growth and superior returns to shareholders.

Common shares of Reliable Energy Ltd. are listed for trading on the TSX Venture Exchange under the symbol REL.

ADVISORY: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, the reference to future operations in 2012 included in the fifth paragraph under "Operations Update" and the paragraph titled "About Reliable" are forward-looking statements. Although Reliable believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Reliable can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and Reliable undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such Act.

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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