Petro-Reef Resources Ltd. ("Petro-Reef" or the "Company") (TSX VENTURE:PER)

Petro-Reef has perforated and tested its recently drilled Alexander
09-12-56-27W4 step-out well in the Detrital oil zone. In 48 hours on test the
well flowed at an average oil rate of 296 bbls/day (47 m3/day) with an average
gas rate of 495 mcf/day (14 e3m3/day). The 9-12 well is the Company's fourth oil
well producing from the Detrital zone all of which have been brought on-stream
in the past 18 months. Petro-Reef has a 94-per-cent working interest in the 9-12
well. The well will be tied in during the next six weeks.


This step out well in section 12 confirms that the Detrital oil trend extends
west from section 7 and based on geological mapping and interpretation of 3D
seismic that there are several additional locations to be drilled. The Company
is presently reprocessing all of its 3D seismic data on its Alexander lands to
further evaluate its potential. Due to the reserve additions added through the
2011 drilling program the Company is currently updating its independent reserve
evaluation and expects to release the results once completed.


Also, the Company would like to provide an update to its August 29, 2011 press
release on restricted production volumes for the Alexander 6-7-56-26W4 and
11-7-56-26W4 wells. On August 30, 2011 the Energy Resources Conservation Board
(ERCB) notified Petro-Reef in writing that a condition of granting a special MRL
(maximum rate limitation) of 20 m3/day/well for an 18 month period without GOR
(gas oil ratio) penalty, is the retirement of overproduction. Effective
September 1, 2011 both wells have been shut-in pending retirement of the
overproduction volumes. The overproduction volumes as calculated by the ERCB
will take approximately 125 days (starting September 1, 2011) to fully retire
the overproduction. It is anticipated that both wells should be placed back
on-stream at a MRL of 20 m3/day each (125 bbls/day) in early January 2012. 


Petro-Reef anticipates its net daily production rates should increase to in
excess of 1,100 boe/day (42% Oil & NGL) taking into consideration normal
production declines with the new well at 9-12 being tied-in and brought
on-stream in October, 2011, and GPP (Good Production Practices) production
restrictions on 6-7-56-26W4 and 11-7-56-26W4 being lifted in early January,
2012.




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                   Oil & NGL (bbl/day) Natural gas (mcf/day) Total (boe/day)
----------------------------------------------------------------------------
Current net                                                                 
 production                       150                 3,200             683 
Tie-in 9-12-57-                                                             
 26W4                             110                   250             152 
GPP restriction                                                             
 lifted                           220                   500             303 
                   ---------------------------------------------------------
Total net                                                                   
 production                       480                 3,950           1,138 
                   ---------------------------------------------------------
                                   42%                   58%            100%
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The term barrel of oil equivalent may be misleading, particularly if used in
isolation. A boe conversion ratio of 6,000 cubic feet per barrel of natural gas
to barrels of oil equivalence is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. All boe conversions in the report are derived from
converting gas to oil in the ratio mix of 6,000 cubic feet of gas to one barrel
of oil.


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.
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