CALGARY, ALBERTA--(Marketwire - May 1, 2012) - Petro-Reef Resources Ltd. (TSX VENTURE:PER), ("Petro-Reef" or the "Company") Petro-Reef Resources announces 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. As mentioned in an earlier press release, the well is an approximate half-mile step-out to our Detrital oilpool (26 degree API) 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 (150 barrels) of clean oil with negligible water (less than one percent). We expect the well to initially produce at its allowable of 20 cubic meters (125 barrels) 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.
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.
Reference is made to barrels of oil equivalent (BOE). Barrels of oil equivalent may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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