Reef Resources Ltd. Announces 100 bopd Test Rate for Ausable #1

CALGARY, ALBERTA, Oct 07 (MARKET WIRE) --

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE
UNITED STATES.

Reef Resources Ltd. (TSX VENTURE:REE) ("Reef" or the "Company") announces
that it has completed its production testing of its Ausable well #1 using
hydraulic venturi downhole pump technology. The computed average daily
production rate over the test period was 103 bopd.

The Company is now in the process of installing the permanent venturi
pumping equipment in Ausable well #1. The new pumping equipment will be
installed in the recently drilled Ausable well #5 followed by Ausable
well #2 and Ausable well #4. Clean up on the Ausable #2 horizontal well
is completed and the new pumping equipment will be installed upon
completion of production flow testing.

During the test period the venturi was run for a number of periods to
test the surface and downhole pumps and to optimise pump rates and
fluids. Reef estimates that the stabilized long term production rate for
Ausable well #1 using venturi pumping will be between 50 - 70 bopd and is
confident that the production rates for the additional production wells
(Ausable #2, Ausable #4 and Ausable #5) will also achieve similar
production levels upon installation of venturi pumps. Ausable well #1 was
previously being pumped using a traditional beam pump and was recently
producing between 5 and 10 bopd. These estimates represent production
prior to the full execution of the Enhanced Oil Recovery ("EOR") program.

Ausable well #3 is currently operating as an injection well for the
Enhanced Oil Recovery program. The EOR program is at a preliminary stage,
presently injecting only 100 mcf/d. The full execution of the EOR program
involves injecting increasing amounts of natural gas in order to
re-pressurize and sweep the reef plus the completion of additional
production/injection wells. Under the full EOR program, re-pressurization
of the reservoir will have a significant positive impact on overall field
production and recovery factors.

The Company also announces that it has received all government approvals
for the installation of a connecting pipeline for its Airport South #1
natural gas well located on its nearby Airport South reef. Natural gas
from the Airport South #1 well will provide additional natural gas for
the Ausable reef EOR injection program and will increase the injection
rate to between 200 - 300 mcf/d. Additionally, recent gas analysis of
Airport South #1 revealed 30 bbls of gas liquids per mmcf which will
enhance the overall production of the Ausable reef.

Arnie Hansen, President stated, "We are delighted with the production
rate we are achieving in Ausable well #1 as it does demonstrate the
production potential of the Ausable field with appropriate pump and EOR
technology. We anticipate additional production from the EOR program will
be equally exciting We are encouraged by the results as it pertains not
only to bringing Ausable well #1 on production but also as a successful
solution for achieving maximum production from Ausable well # 2, Ausable
well # 4 and Ausable well # 5."

Footnote: The Company's Ontario asset has gas storage rights, gas
re-injection permit for gas recycle, NGL recovery, enhanced oil recovery
and arbitrage. A key component of Reef's Ontario strategy is to identify
and exploit undervalued prospects in the Ontario basin by utilizing the
company's 23,500 acres of proprietary 3D seismic. In addition to its
Ontario Properties, Reef has identified multiple oil and gas acquisition
and development opportunities throughout Canada.

The term barrels of oil equivalent ("BOE") may be misleading,
particularly if used in isolation. In accordance with NI 51-101, a BOE
conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) 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 herein are derived from converting gas to oil in the ratio
mix of six thousand cubic feet of gas to one barrel of oil.

Forward Looking Statements - This news release contains certain
forward-looking statements, which include assumptions with respect to the
valuation of Reef's reserves, funds raised from a financing and future
capital expenditures. The reader is cautioned that assumptions used in
the preparation of such information may prove to be incorrect. All such
forward looking statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond the Company's control.
Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and the Company does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Contacts:
Reef Resources Ltd.
Arnie Hansen
President & CEO
(403) 251-9447

Reef Resources Ltd.
Larry Olson
Vice President, Finance
(250) 490-3378

Reef Resources Ltd.
2020 - 801 6 Ave SW
Calgary, AB T2P 3W2

Copyright 2011, Market Wire, All rights reserved.

-0-