Petro-Reef Resources Ltd.
October 18, 2007
TSX-V: PER
Petro-Reef Resources to Drill
Deep Exploration Well in Alexander
CALGARY, ALBERTA - Petro-Reef Resources Ltd. ("Petro-Reef"
or the "Company") is pleased to announce that it intends to commence
drilling a deep exploration test at 15-29 in Alexander, Alberta by the end of
the week. The 15-29
well targets reef prospects in the Devonian formation which have been
identified by the interpretation of 3-D seismic. Depending on the drilling
results, Petro-Reef has identified several follow-up locations offsetting
15-29. The Company holds a 94% working interest on all lands in the area
believed to contain the Devonian reef.
Following
the drilling of the well at 15-29, Petro-Reef intends to drill a well at 5-6
where the Company has used 3-D seismic data to identify a large shallow gas
structure. Management believes this structure has not previously been tested.
Petro-Reef holds a 59% working interest in this opportunity.
Petro-Reef
also intends to drill a well at a new exploration play south of the Company's
recent natural gas discovery at 13-6. Recent 3-D seismic data covering a
three-section block, where Petro-Reef holds a 94% working interest, reveals a
look-alike feature to the well at 13-6. It is expected the drilling of this
exploration opportunity will commence in late November 2007.
As a result
of Petro-Reef's continued drilling success in Alexander, the Company's current
production has increased to approximately 900 barrels of oil equivalent per day
(boe/d). This amount includes restricted production from the well at 13-6. In
July, Petro-Reef added a new compressor at its 8-1 natural gas facility
allowing the tie-in of the 13-6 well. As a result of the high pressure 13-6
well being brought onstream through the 8-1 natural gas facility, several
existing wells experienced a restriction that reduced the net increase in
production from the 13-6. Based on current production and estimated production
additions from new wells, Petro-Reef maintains its forecasted exit rate for
2007 of 1,100 boe/d.
Petro-Reef
Resources Ltd. is a Calgary-based junior oil and gas company focused on
petroleum and natural gas lease acquisition and exploration, and development of
crude oil and natural gas properties in Alberta,
Canada.
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
(403)
264-1348 (FAX)
or
Petro-Reef
Resources Ltd.
John R.
Pantazopoulos
Vice-President
Finance, and CFO
(403)
265-6444
(403)
264-1348 (FAX)
or
Petro-Reef Resources Ltd.
Suite
970, 10655 Southport
Road S.W.
Calgary, Alberta
T2W 4Y1
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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