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 October 26, 2011 Petro-Reef tied in its Alexander 09-12-56-27W4 step-out well producing from the Detrital oil zone. During the first 19 days on production, the well flowed at an average rate of 193 BOE/day (181 BOE/day net) - 151 bbl/day (142 bbl/day net) of oil and 247 mcf/day (232 mcf/day net) of natural gas. Petro-Reef has a 94% working interest in the 9-12 well.
• The Company believes that this step-out well in Section 12 confirms that the Detrital oil trend extends west from Section 7 where Petro-Reef has three wells producing from the same zone. The Company has completed the reprocessing of 35 sections of 3-D seismic data on its Alexander lands which has been incorporated into the October 1, 2011 independent reserves evaluation, prepared by McDaniel & Associates Consultants Ltd. Four additional Detrital development locations have been included in the McDaniel Update Report.
• Petro-Reef's gross proved plus probable reserves at October 1, 2011 indicated and increase of 12% to 1,771,150 BOE from 1,580,000 BOE at December 31, 2010. After considering the production for the period January 1 to September 30, 2010 of 180,300 BOE, the 2011 reserve additions totaled 371,450 BOE which represents an increase of 24% over the 2010 year end reserves.
• On October 4, 2011 the Company announced the formation of a Special Committee of the Board, comprised of Gary Van Nest (Chair), and fellow directors Allan Rasmuson and Peter Lubey to review strategic options available to the Company on a go forward basis, with the view toward maximizing shareholder value. The Company has retained the services of Emerging Equities Inc. to act as a financial advisor in this process.