Petro-Reef Resources
Ltd.
TSX-V: PER
September 27,
2007
Petro-Reef
Resources Ltd. Hits Natural Gas Reservoir in Alexander
CALGARY, ALBERTA - Petro-Reef
Resources Ltd., is pleased to announce that its new well drilled at 13-6 in
Alexander, Alberta in August has been production tested for a period of two days
at an absolute open flow rate of 12.762 million cubic feet of natural gas per
day with 60 barrels of condensate per day, for a total of 2,187 BOE/D. The
Company has a 59% working interest in the well.
Petro-Reef cautions that this
absolute open flow rate represents the maximum rate the well could theoretically
deliver with zero pressure at the middle of the perforations. This figure should
not be viewed as a sustainable daily production rate. In addition, the high
flowing pressure rate from the new well at 13-6 will restrict the production
from other wells flowing through the Company's central gas plant at 8-1, but is
not expected to affect the ultimate reserves produced.
Petro-Reef plans to place the 13-6
well on stream within three weeks at an initial restricted
rate.
To date in 2007, the Company has
drilled six wells in Alexander, all of which have been successful. Wells drilled
at 11-14, 14-1 and 11-27 are all on stream. Further to the news release of July
26, 2007, the Company is waiting for delivery of equipment to tie-in the 10-1
well which tested crude oil in June. This is expected to occur within
approximately three weeks. Initial production testing has been completed on a
well drilled at 13-33 and will be re-evaluated after Petro-Reef drills an up-dip
well at 11-27 or 9-33 which is expected to take place in the first quarter of
2008.
Petro-Reef's current production is
approximately 700 BOE/d. By the end October 2007, the Company expects its
production to be approximately 1,000 BOE/d.
The Company is in the process of
preparing to drill up to an additional 10 wells which, subject to weather
conditions and regulatory approvals is expected to take place in the next four
months.
Forward-Looking Statements: All
statements, other than statements of historical fact, set forth in this news
release, including without limitation, assumptions and statements regarding
reservoirs, resources and reserves, future production rates, exploration and
development results, financial results, and future plans, operations and
objectives of the corporation are forward-looking statements that involve
substantial known and unknown risks and uncertainties. Some of these risks and
uncertainties are beyond management's control, including but not limited to, the
impact of general economic conditions, industry conditions, fluctuation of
commodity prices, fluctuation of foreign exchange rates, environmental risks,
industry competition, availability of qualified personnel and management,
availability of materials, equipment and third party services, stock market
volatility, timely and cost effective access to sufficient capital from internal
and external sources. The reader is cautioned that assumptions used in the
preparation of such 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 be accurate and actual results
and future events could differ materially from those anticipated in such
statements.
Note: BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead.
The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this news
release.
For more information, please
contact:
Petro-Reef Resources
Ltd.
Joseph Werner
President and
CEO
(403) 265-6444
or
Petro-Reef Resources
Ltd.
Theodore M.
Donhuysen
Vice-President Exploration and
Production, and COO
(403) 265-6444
or
Petro-Reef Resources
Ltd.
970, 10655 Southport Road
S.W.
Calgary, Alberta T2W
4Y1
(403) 265-6444
(403) 264-1348
(FAX)
Email: info@petro-reef.ca
Website: www.petro-reef.ca
or
Bryan Mills
Iradesso
Geoffrey
Vanderburg
(403) 503-0144 ext.
203
Email: gvanderburg@bmir.com
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