Reef Resources Ltd. reports that substantial further progress has been made on a number of field activities associated with the ongoing development of the Ausable Gas Recycling and Enhanced Oil Recovery (EOR) project.

The recent cold weather in Ontario has improved conditions for completing the pipeline between the existing South Airport gas well and the Ausable process facility. Once the pipeline welding is completed the required road bores will be conducted.

The reversal of the Union Gas meter, which will allow the Company to purchase natural gas for re- injection in the Ausable reef, is tentatively scheduled for February 27th. Piping modifications at the facility will commence once the gas flow is reversed. This will allow initiation of the gas re-injection scheme. Additionally, gas and gas liquids from South Airport will also be used for re-injection once the pipeline is completed and commissioned.

The workover program for installation of a production packer in Ausable #1 well is being initiated to coincide with the planned meter reversal. This will isolate the top set of three perforations and will allow for planned gas reinjection into the uppermost section of the Ausable reef.

Tags: Reef Resources Ltd.