Reliable Energy Ltd.

Reliable Energy Ltd.

August 22, 2011 17:23 ET

Reliable Energy Provides Operations Update and Initial Production Results

CALGARY, ALBERTA--(Marketwire - Aug. 22, 2011) -


Reliable Energy Ltd. ("Reliable" or the "Company") (TSX VENTURE:REL) is pleased to provide the following operations update.


Manitoba – Following an extended spring break up, the result of higher than normal rainfall and flooding in southeast Saskatchewan and southwest Manitoba, Reliable commenced drilling operations in early July, 2011 with a rig it has contracted through to March 31, 2012. To date, the Company has successfully drilled three horizontal wells with the fourth currently drilling ahead.

The first well, 04-16-13-28W1 at East Manson, was drilled into the Bakken formation with a horizontal section of 823 meters and included 29 frac intervals. The well has now been on production for 20 days with increasing oil cuts and has averaged 177 bopd gross (133 net) over the last five days, as the well continues to clean up.

The second well, 01-34-12-28W1 at North Elkhorn, was drilled with a horizontal section of 1,280 metres and is currently being completed with 27 frac intervals. The well is expected to be placed on production within seven days.

The third well, 07-09-13-28W1 at East Manson has been drilled with a 580 metre horizontal section and a 19 stage frac program is planned for this well. Completion operations will begin once the 1-34 completion has finished operations.

The fourth well, 15-23-11-29W1 at South Kirkella, is currently drilling and is planned to have a 1,400 metre horizontal section and 44 frac intervals.

The remaining six horizontal wells of our 2011 program in Kirkella include two more horizontals at South Kirkella and four horizontal wells at East Manson. With the success the Company is enjoying at East Manson, the Company's focus will be on developing this field with the aim of increasing production and cashflow.

Montana – In June 2011, Reliable, along with its partners, completed the second vertical well of its Montana program. The White Bear 15-23 well was drilled during the first quarter of 2011 to a total depth of 5,600 feet (1,700 metres) in order to evaluate additional zones below the Bakken. While the original target of reservoir in the Bakken zone was not encountered, this exploration well provided significant data on the Bakken to further the evolution of the geological model of the Bakken in this area of Montana.

Two other potential hydrocarbon-bearing zones were encountered in the wellbore: the Duperow formation and the Bowdoin zone, which produces gas from the Bowdoin Dome field approximately 60 miles to the east. The well was completed and tested in the Duperow formation. High fluid rates were established, but no economic hydrocarbon volumes were produced.

Completion efforts were then directed toward the Bowdoin zone in the original 12B-26 well drilled in 2010. The well was perforated, shut-in for pressure build-up, and once positive pressure information was obtained, the well was placed on flow test. The gas rates for the zone were in line with rates of other unstimulated wells in the Bowdoin Dome field and the well was shut-in and its status with the Montana Board was subsequently changed to "Shut-In Gas Well". Reliable and its partners are currently evaluating the results from the completion and are developing a completion program in the Bowdoin zone of the 15-23 well. The Bowdoin zone appears to be a regional gas resource prospect and we are currently identifying future locations that will evaluate both the Bowdoin and Eagle gas zones.


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 80,000 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 statement in the paragraph titled "Manitoba" regarding expected timing of drilling, completion and on-production operations, the statement in the paragraph titled "Montana" about the Bowdoin zone appearing to be a regional gas prospect and "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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