Petro-Reef to Drill Three New Wells

Petro-Reef Resources Ltd. has announced that it will be drilling three new wells in Alexander, Alberta Canada, by the end of the year.

The company intends to commence drilling a deep exploration test at 15-29 in Alexander, Alberta by the end of the week. The 15-29 well targets reef prospects in the Devonian formation, which have been identified by the interpretation of 3-D seismic. Depending on the drilling results, Petro-Reef has identified several follow-up locations offsetting 15-29. The company holds a 94% working interest on all lands in the area believed to contain the Devonian reef.

Following the drilling of the well at 15-29, Petro-Reef intends to drill a well at 5-6 where the company has used 3-D seismic data to identify a large shallow gas structure. Management believes this structure has not previously been tested. Petro-Reef holds a 59% working interest in this opportunity.

Petro-Reef also intends to drill a well at a new exploration play south of the company's recent natural gas discovery at 13-6. Recent 3-D seismic data covering a three-section block, where Petro-Reef holds a 94% working interest, reveals a look-alike feature to the well at 13-6. It is expected the drilling of this exploration opportunity will commence in late November 2007.

As a result of Petro-Reef's continued drilling success in Alexander, the company's current production has increased to approximately 900 boe/d. Based on current production and estimated production additions from new wells, Petro-Reef maintains its forecasted exit rate for 2007 of 1,100 boe/d.

Petro-Reef Resources Ltd. is a Calgary-based junior oil and gas company focused on petroleum and natural gas lease acquisition and exploration, and development of crude oil and natural gas properties in Alberta, Canada.