Overview

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

Investment Highlights

• Experienced management team
• Consistent production growth
  • Five years of consistent production growth
  • Forecasted January 2012 production of 1,100 BOE/day (40% oil)

• Concentrated asset base
• One core area with 40+ sections of land (85% WI)
• Represents 99% of production / reserves
• 17 section Crown exploration license & lease at Goose River

• Multi-year drilling inventory
• Downspacing application at Alexander approved allowing for the drilling of over 40 potential development oil drilling locations
• High-impact exploration natural gas opportunities

Business Strategy

• Guiding principles in operations
• Drill quality exploration prospects with multi-zone potential
• Target 10:1 profit to capital risk ratio
• Minimum 30% rate of return on capital invested

• Apply diversified geoscience approach
• Use 2-D / 3-D seismic to identify drilling locations
• Apply state of the art proprietary seismic shooting and processing techniques
• Understand the lithology and mineralogy through core analysis and detailed sample work

• Operate production and capital projects
• Operate core area of Alexander and exploit multi-zone oil reservoirs
• Continue exploration and development of Goose River Nordegg oil prospect