Reef Resources to Ramp Production at Ausable #5 Well

- Reef Resources to Ramp Production at Ausable #5 Well

Thursday, September 01, 2011
Reef Resources Ltd.

Reef Resources plans to install a hydraulic venturi downhole pump in the Ausable # 5 well. This proven oilfield technology, replacing conventional bottomhole pumps with venturi units, is currently being installed and tested on the Ausable #1 well. The hydraulic unit is designed to operate efficiently with the light oil and condensate currently being produced from the Ausable reef and will provide optimum production flow rates. It is anticipated that the hydraulic pumping units will also be installed in Ausable # 2 and Ausable # 4 over the course of the next two months.

Following the installation of the venturi pump in Ausable # 5 the Company will be in a position to accurately report production flow rate in addition to production potential with the previously announced Enhanced Oil Recovery (EOR) and cyclic natural gas liquids (NGL's) program. Under the EOR program, reservoir analysis and design work to date indicates re-pressurization of the reservoir will have a significant positive impact on overall field production and recovery factors. Results and updates of the Company's optimization program and implementation of the cyclic gas EOR program will be released once fully operational.

Reef also announced that two of the three frac tools from the Ausable #2 horizontal well have been successfully recovered. Approximately 75% of the productive zone is now open. Additional fishing operations are not viewed as cost effective and the Company will be moving forward with wellbore clean up and flow testing. A further announcement will be made once the well is on stream.

Arnie Hansen stated, "We continue to view Ausable # 5 very positively and the Company's engineering and operations team is working diligently to increase production by implementation of the venturi pumping system followed by the re-pressurization of the reef and commissioning of the EOR and NGL program. There are numerous analogous fields where these types of optimization efforts have successfully yielded significant increases in production once in operation."

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Reef Resources to Boost Production at Ausable Field

- Reef Resources to Boost Production at Ausable Field

Thursday, August 04, 2011
Reef Resources Ltd.

Reef Resources announced that significant progress is being made on determining the Ausable #5 future flow rate. The presence of very light oil, blended with natural gas condensates, creates foamy oil conditions and consequently the current mechanical bottom hole pumping configuration is operating at very low efficiency causing erratic flow rate and high fluid levels in the wellbore. The Ausable field has now been shut in for a period of time to provide fluid level and pressure build up data that is necessary to determine the Ausable #5 likely flow rate using industry accepted inflow analysis technique and will be reported as soon as all data is processed.

When the likely ultimate flow rate has been estimated Reef will be able to design and execute a plan for long term lifting of the well fluids using revised pumping techniques that will allow the full potential of the well to be realised.

The removal of the frac tools from Ausable # 2 is also progressing. The first stage of tubing cuts have been successfully executed and will now concentrate on extracting the frac tools over the course of the next few days. Once the frac tools are removed the Company will report on the status of Ausable #2.

Arnie Hansen stated, "While still at a preliminary state, Ausable # 5 is looking very positive and the Company's engineering team is working on a solution to increase pumping efficiencies therefore increasing production. This is the first stage of optimization with next goal to acquire and inject natural gas to re-pressure the reef that will significantly increase production and demonstrate the true value of the Ausable pool."

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Solo Oil Updates Ausable Field Operations

- Solo Oil Updates Ausable Field Operations

Monday, August 01, 2011
Solo Oil plc

Solo Oil announced further updates of operations at the Ausable Field in South Western Ontario operated by its Joint Venture partner Reef Resources Limited.

Further to the announcement of July 12, 2011, Reef has informed the Company that the Ausable#5 well has been tied-in to the Ausable central production facilities and has been producing oil at variable rates since July 22, 2011 by means of a beam pump. Reef has indicated that the produced oil continues to foam with the completion fluids and that as a result it has so far not been possible to establish a representative production rate. The fluids used to acidize and stimulate the well have yet to be fully recovered. Reef is exploring alternative pumping strategies and has indicated that they will report further on progress shortly.

Work on recovering the frack tool left in Ausable#2 during work in 2010 has been started and fishing tools are being run in hole to make the first of several planned cuts in the tubing in order to retrieve the equipment resting across the production zone. These operations are expected to take one to two weeks to conclude.

Neil Ritson, Solo's Executive Director, commented, "The presence of moveable oil is very encouraging and we are pleased with the progress being made to bring both wells on to sustained production. We will further update shareholders as soon as additional information becomes available."

Solo currently holds a 23.8% working interest in the Reef Ausable properties and an option to increase its interest to 38.1% through co-investing a further CDN$1.5 million, with Reef, in the development of the Ausable and adjacent assets.

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Testing Underway at Reef's Ausable Well

- Testing Underway at Reef's Ausable Well

Friday, June 17, 2011
Reef Resources Ltd.

Reef Resources announced the contracted service rig is now on the Ausable #5 well in preparation for the testing and completion. The completion program comprises drilling out cement and a bridge plug in the production casing, swab testing of the lower Goat Island zone and completion of the Guelph formation using a multi-stage selective acid treatment. After acidization the well will be flow tested over a period of several days to ensure clean up. These operations are expected to take between 15 to 25 days to complete.

Reef previously announced the log analysis on the Ausable #5 well, with log analysis indicating 72 meters net pay of oil and NGL's in the Guelph and A2 formations.

Reef will be announcing test results after completion of Ausable #5 and the details of the next development steps in the Enhanced Oil Recovery - Natural Gas Liquids program in due course. The Ausable reef is currently on production and is generating revenue from the initial program which commenced in 4th quarter 2010.

Reef Resources announced the contracted service rig is now on the Ausable #5 well in preparation for the testing and completion. The completion program comprises drilling out cement and a bridge plug in the production casing, swab testing of the lower Goat Island zone and completion of the Guelph formation using a multi-stage selective acid treatment. After acidization the well will be flow tested over a period of several days to ensure clean up. These operations are expected to take between 15 to 25 days to complete.

Reef previously announced the log analysis on the Ausable #5 well, with log analysis indicating 72 meters net pay of oil and NGL's in the Guelph and A2 formations.

Reef will be announcing test results after completion of Ausable #5 and the details of the next development steps in the Enhanced Oil Recovery - Natural Gas Liquids program in due course. The Ausable reef is currently on production and is generating revenue from the initial program which commenced in 4th quarter 2010.

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Solo Oil to Take Stake in Ausable Field

- Solo Oil to Take Stake in Ausable Field

Tuesday, May 24, 2011
Solo Oil plc

Solo Oil has entered into a binding Heads of Agreement with Reef to earn a 38.1% direct working interest in the Ausable Field and surrounding properties in South Western Ontario.

Highlights:

• Production testing will soon commence on Ausable #5
• Ausable #5 contains 72 meters of net hydrocarbon bearing pay
• Further wells are planned along with expansion of the production facility during 2011
• To gain a 38.1% working interest Solo will:
  • Convert its existing Participating Loan of CDN $1.65 million into a direct working interest in the Properties, and
  • Invest up to an additional CDN $2.35 million in the Properties

Neil Ritson, Solo Executive Director, commented, "The initial facilities upgrade and drilling of Ausable #5 has provided proof of concept at Ausable in the last 6 months and Solo now has sufficient confidence to convert its existing loan to a direct participation in the Reef properties and to commit to co-invest with Reef in the further development of the field and the surrounding opportunities. This is an important watershed in the project and we look forward to reporting on it further as the year progresses."

Terms of the Working Interest Acquisition

• Solo will convert its existing Participating Loan to a direct working interest in the Properties at a rate of 1% interest per CDN $105,000.
• Solo will advance a further CDN $200,000 following execution of the Heads of Agreement on the same terms.
• These additional funds will be used for the testing and completion of the Ausable #5 well, the tie-in of the South Airport gas well to the Ausable Field production facilities and the return to production of the Ausable #2 well.
• Solo and Reef will, within 30 days, agree and sign a First General Conveyance Agreement totaling 23.8% direct working interest in the Properties. On signature of this agreement Solo will advance a further CDN $650,000 to the project.
• Upon execution of the conversion of the Participating Loan as envisaged in the Heads of Agreement, Solo has additionally agreed to pay CDN $2.5 million to purchase an additional 14.3% direct working interest in the Properties.
• This additional payment will be released against agreed work programs and budgets following execution of a Second General Conveyance Agreement and Joint Operating Agreement, and when Reef raises equivalent equity funding of CDN $1.5 million.

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Reef Resources to Test Flows at Ausable Well

Reef Resources to Test Flows at Ausable Well

Tuesday, April 19, 2011
Reef Resources Ltd.

Reef Resources has agreed to complete and flow test the Ausable #5 well in SW Ontario, Canada.

A decision has been made to mechanically complete the well and to conduct flow tests on the basis of the existing data. Further analysis of electric logs and cores from the wells will continue.

Following production testing; the well will be connected to the existing central production facility and placed on production as an oil and natural gas liquids (NGL) producer. The Company's objective is to have the well on production within the next four to six weeks.

Due to the presence of extensive oil and natural gas liquids pay zones in the Ausable #5 well, the Company will now begin detailed scheduling for the drilling of the Ausable #6, #7, #8 and #9 wells and the expansion of the Ausable production facility. Currently it is hoped to complete this additional work by the end of 2011.

The Company will issue additional status reports during the testing and completion of Ausable #5 and as plans for the full Enhanced Oil Recovery and Natural Gas Liquids Program (EOR) are finalized. The Ausable reef is currently on production and is generating revenue from the initial EOR program which commenced in 4th quarter 2010 through the Ausable #1 and #4 wells.

Company President, Arnie Hansen, commented, "We see this as a turning point in the development of the Ausable Reef as the results of the well fully support our geological model and demonstrate the viability of the EOR scheme. We look forward to a busy period over the remainder of the year as we plan and execute the necessary well program."

Reef Reaches TD at Ausable Well

Reef Reaches TD at Ausable Well

Thursday, March 31, 2011
Reef Resources Ltd.

Reef Resources reported that drilling of its Ausable # 5 well reached total depth of 615 meters on March 29. A total of 4 cores were taken over a depth of 32 meters with overall good recoveries. Oil staining was observed on the core sample which is currently being analyzed with results to be released in the near future. Data from the core samples will provide information on cap rock integrity and will be utilized, in addition to existing 3D seismic data, to pinpoint further drilling targets for future horizontal wells in the Ausable pinnacle reef.

The Ausable # 5 wellbore is being logged to identify the intersected hydrocarbon zones in the Ausable reef at this location. Results will be analyzed and released as soon as it is available.

The Ausable reef is currently on production and is generating revenue from the initial Enhanced Oil Recovery Natural Gas Recycling program which commenced in 4th quarter 2010.

Executive Director of Solo, Neil Ritson commented, "The presence of oil on the cores is considerable encouragement that we will be able to commercially produce this well while we awaiting the further planned development of the EOR scheme by Reef later this year."