Reliable Posts Initial Production Results for Manitoba Well

Reliable provide the following operations update.

Manitoba - Following an extended spring break up, the result of higher than normal rainfall and flooding in southeast Saskatchewan and southwest Manitoba, Reliable commenced drilling operations in early July, 2011 with a rig it has contracted through to March 31, 2012. To date, the Company has successfully drilled three horizontal wells with the fourth currently drilling ahead.

The first well, 04-16-13-28W1 at East Manson, was drilled into the Bakken formation with a horizontal section of 823 meters and included 29 frac intervals. The well has now been on production for 20 days with increasing oil cuts and has averaged 177 bopd gross (133 net) over the last five days, as the well continues to clean up.

The second well, 01-34-12-28W1 at North Elkhorn, was drilled with a horizontal section of 1,280 meters and is currently being completed with 27 frac intervals. The well is expected to be placed on production within seven days.

The third well, 07-09-13-28W1 at East Manson has been drilled with a 580 meter horizontal section and a 19 stage frac program is planned for this well. Completion operations will begin once the 1-34 completion has finished operations.

The fourth well, 15-23-11-29W1 at South Kirkella, is currently drilling and is planned to have a 1,400 meter horizontal section and 44 frac intervals.

The remaining six horizontal wells of our 2011 program in Kirkella include two more horizontals at South Kirkella and four horizontal wells at East Manson. With the success the Company is enjoying at East Manson, the Company's focus will be on developing this field with the aim of increasing production and cashflow.

Montana - In June 2011, Reliable, along with its partners, completed the second vertical well of its Montana program. The White Bear 15-23 well was drilled during the first quarter of 2011 to a total depth of 5,600 feet (1,700 meters) in order to evaluate additional zones below the Bakken. While the original target of reservoir in the Bakken zone was not encountered, this exploration well provided significant data on the Bakken to further the evolution of the geological model of the Bakken in this area of Montana.

Two other potential hydrocarbon-bearing zones were encountered in the wellbore: the Duperow formation and the Bowdoin zone, which produces gas from the Bowdoin Dome field approximately 60 miles to the east. The well was completed and tested in the Duperow formation. High fluid rates were established, but no economic hydrocarbon volumes were produced.

Completion efforts were then directed toward the Bowdoin zone in the original 12B-26 well drilled in 2010. The well was perforated, shut-in for pressure build-up, and once positive pressure information was obtained, the well was placed on flow test. The gas rates for the zone were in line with rates of other unstimulated wells in the Bowdoin Dome field and the well was shut-in and its status with the Montana Board was subsequently changed to "Shut-In Gas Well". Reliable and its partners are currently evaluating the results from the completion and are developing a completion program in the Bowdoin zone of the 15-23 well. The Bowdoin zone appears to be a regional gas resource prospect and we are currently identifying future locations that will evaluate both the Bowdoin and Eagle gas zones.

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