Petro-Reef Resources Ltd. is a Calgary- based crude oil and natural gas exploration and production company with producing properties in Alberta, Canada.

Petro-Reef operates two core properties: Alexander/Qui Barre and Goose River. The Company's remaining production comes from minor working interests and royalty properties.

• On May 1, 2012 Petro-Reef announced the successful completion of its 11-12-56-27W4 Detrital sand oilwell, which was drilled in March of this year. The Company is operator of and has a 94 percent working interest in the well. The well is an approximate half-mile step-out to our Detrital oilpool that was discovered in 2009.
• The well is Petro-Reef's fifth oilwell in the pool. The 11-12 well encountered 7 meters of net pay, split into an upper and lower sand. Only the lower sand was completed at this time, with swabbing for 10 hours recovering 24 cubic meters of clean oil with negligible water. We expect the well to initially produce at its allowable of 20 cubic meters per day. Petro-Reef is proceeding to tie the well into our gathering system, and, weather permitting, production should commence by the end of the second quarter.
• Based on seismic interpretation, up to four more delineation wells remain to be drilled on the Detrital oil pool to confirm its extent on Company lands. Petro-Reef has working interests ranging from 79 to 94 percent in future development wells.
• Petro-Reef's total current production is approximately 825 barrels of oil equivalent per day, 42 percent of which is oil and natural gas liquids.