Overview

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 Peavey/Morinville in Alberta.

Approximately 93 percent of the Company's production is natural gas and about seven percent is crude oil and natural gas liquids.

The Company continues to use the following exploration criteria on each prospect to assure high profitability and a high rate of return on capital investment. Each exploration prospect must exhibit:

• a minimum of three zones with hydrocarbon potential
• each zone must show the potential for:
  • 10:1 profit to capital risk ratio
  • a minimum of 30 percent rate of return on capital invested
  • a minimum reserve life of 15 years

Petro-Reef also makes extensive use of state of the art 2-D and 3-D seismic technology to identify and confirm potential drilling locations.