CALGARY, ALBERTA--(Marketwire - March 3, 2011) - Petro-Reef Resources Ltd. (News - Market indicators),("Petro-Reef" or the "Company") announces that it has acquired additional lands directly offsetting its development lands in the Alexanderarea of Alberta. The new section (94% working interest) is adjacent to Section sevenand management believes that the oil trend extends into the new land acquisitionproviding Petro-Reef with additional development locations.
Based on the Company's drilling success in the fall of 2010 and strong production from the Detritaloil zone, Petro-Reef is preparing to license and intends to drill 4 development wellsin Q1 and Q2 of 2011targeting the same, highly prolific crude oil zone. Petro-Reef holds a 79% working interest in three of the locations and a 94% working interest in the fourth.
The Company's two development wells drilled in the fall of 2010 on the Alexander landshave stabilized and are currently producing a combined total of 405 BOE/day (319 BOE/day net):
The 11-07 well came on stream in early October, 2010 and the 06-07 well came on stream in late December, 2010.
Petro-Reef Resources Ltd. also announces that Mr. Alisdair Leeson, C.A., has been appointed Vice President Finance and Chief Financial Officer of the Company. Mr. Leeson brings twenty five(25) years of experience as a Chartered Accountant in various industries. The appointment of Mr. Leeson is in addition to the previously announced appointment of Mr. Hugh Thomson as Chief Accountant.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements: All statements, other than statements of historical fact, set forthin this news release, including without limitation, assumptions and statements regardingreservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-lookingstatements that involve substantial known and unknown risks and uncertainties. Some ofthese risks and uncertainties are beyond management's control, including but not limited to, theimpact of general economic conditions, industry conditions, fluctuation of commodity prices,fluctuation of foreign exchange rates, environmental risks, industry competition, availability ofqualified personnel and management, availability of materials, equipment and third partyservices, stock market volatility, timely and cost effective access to sufficient capital frominternal and external sources. The reader is cautioned that assumptions used in the preparation ofsuch information, although considered reasonable by the Corporation at the time of preparation,may prove to be incorrect. There can be no assurance that such statements will prove to beaccurate and actual results and future events could differ materially from those anticipated insuch statements.Reference is made to barrels of oil equivalent (BOE). Barrels of oil equivalent may be misleading,particularly if used in isolation. In accordance with National Instrument 51-101, a BOEconversion ratio for natural gas of 6 Mcf : 1 bbl has been used, which is based on an energyequivalency conversion method primarily applicable at the burner tip and does not represent avalue equivalency at the wellhead.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.