Petro-Reef Resources Ltd. Announces Well Casing

CALGARY, ALBERTA--(Marketwire - March 27, 2012) - Petro-Reef Resources Ltd. ("Petro-Reef") (TSX VENTURE:PER)

Petro-Reef Resources announces that it has cased its 11-12-56-27w4 well as a potential Detrital oilwell. The Company is operator of and has a 94 percent working interest in the well. The well is an approximate half mile step-out to an existing Detrital oilwell at 9-12-56-27w4. It is hoped the new well can be completed before spring breakup; in any event further information regarding productivity will be released when completion operations and testing are completed.

Petro-Reef's Detrital oilpool (26 degree API) was discovered in 2009 with the 11-7-56-26w4 well. The Company has now followed up the discovery with four additional Detrital development oilwells. Combined, the four existing producing Detrital oilwells in section 7-56-26w4 and section 12-56-27w4 are currently producing approximately 300 barrels of oil per day. The log characteristics and preliminary core analysis of the new well at 11-12 are consistent with the existing producing wells. Based on 3D seismic which the Company has over the lands, and assuming the new well is a successful Detrital oil producer, three to four more development wells could be drilled on Company lands. Petro-Reef would have working interests ranging from 79 to 94 percent in future development wells.

Petro-Reef's total current production is approximately 825 barrels of oil equivalent per day, 42 percent of which is oil and natural gas liquids.

Petro-Reef is also pleased to announce that Mr. Richard Wigington has been hired as a full time consultant by the Company. Mr. Wigington has been retained as a direct advisor to Mr. Gary Van Nest, the Company's acting CEO. Mr. Wigington has had a successful career at the board and executive level with several oil and gas exploration companies in Calgary, including as CEO of both Pinnacle Resources and Seventh Energy.

Additional information about the Company is available under Petro-Reef's profile on SEDAR at www.sedar.com.

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 Company 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 Company 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.