Reliable Energy Ltd. Announces 2011 Third Quarter Results, Revises Guidance

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

CALGARY, ALBERTA -- (Marketwire - Nov. 28, 2011) - Reliable Energy Ltd. ("Reliable" or the "Company") (TSX VENTURE: REL) is pleased to report its financial and operational results for the three and nine months ended September 30, 2011.


HIGHLIGHTS

	Three Months Ended
September 30, 	Nine Months Ended
September 30,
	2011 		2010 		Change 		2011 		2010 		Change 	
(000s) 	($) 	($) 	(%) 	($) 	($) 	(%)
Financial 												
Gross revenue 	5,761 		2,117 		172 		16,151 		6,394 		153 	
Net income (loss) 	1,656 		(1,261) 	231 		1,740 		(1,882) 	192 	
	Per share - basic 	0.007 		(0.005) 	240 		0.007 		(0.009) 	178 	
	Per share - diluted 	0.007 		(0.005) 	240 		0.007 		(0.009) 	178 	
Cash flow from operations (1) 	3,831 		499 		668 		9,601 		2,032 		372 	
	Per share - basic 	0.016 		0.002 		700 		0.041 		0.010 		310 	
	Per share - diluted 	0.016 		0.002 		700 		0.040 		0.010 		300 	
Capital expenditures 	8,217 		7,881 		4 		18,862 		15,319 		23 	
Total assets 	53,200 		40,074 		33 		53,200 		40,074 		33 	
Working capital 												
	(deficiency) 	(11,175) 	1,845 		(704) 	(11,175) 	1,845 		(704)
Shareholders' equity 	32,684 		29,928 		9 		32,684 		29,928 		9 	
(000s) 	(#) 	(#) 	(%) 	(#) 	(#) 	(%)
Share Data 												
At period-end 	236,573 		236,138 		-- 		236,573 		236,138 		-- 	
Weighted average 												
	Basic 	236,573 		235,924 		-- 		236,403 		206,335 		15 	
	Diluted 	238,097 		240,933 		(1) 	237,927 		211,344 		13 	
												
	Three Months Ended
September 30, 	Nine Months Ended
September 30,
	2011 		2010 		Change 		2011 		2010 		Change 	
					(%) 					(%)
Operational 												
Production 												
	Light crude oil (bbls/d) 	679 		300 		126 		637 		299 		113 	
	Natural gas (mcf/d) 	-- 		-- 		-- 		-- 		43 		-- 	
	Total (boe/d) 	679 		300 		126 		637 		306 		108 	
	Total (boe) 	62,505 		27,630 		126 		173,813 		83,557 		108 	
	Light oil (%) 	100 		100 		-- 		100 		98 		2 	
Average wellhead prices (3) 												
	Light crude oil ($/bbl) 	91.13 		75.50 		21 		93.85 		77.07 		22 	
	Natural gas ($/mcf) 	-- 		-- 		-- 		-- 		4.00 		-- 	
	Total ($/boe) 	91.13 		75.50 		21 		93.85 		75.82 		24 	
Operating cost ($/boe) 	13.52 		11.99 		13 		14.64 		12.53 		17 	
Operating netback ($/boe) 	65.24 		51.00 		28 		66.55 		50.35 		32 	
Gross (net) wells drilled 												
	Oil (#) 	3 (2.3) 	4 (3.0) 			8 (6.8) 	12 (9.0) 		
	Awaiting completion (#) 	4 (3.0) 	3 (2.8) 			4 (3.0 	) 	4 (3.5) 		
	Shut-in or suspended (#) (4) 	-- (--) 	-- (--) 			1 (0.4 	) 	-- (--) 		
	Dry and abandoned (#) 	-- (--) 	4 (3.5) 			-- (--) 	7 (5.8) 		
	Total (#) 	7 (5.3) 	11 (9.3) 			13 (10.2) 	23 (18.3) 		
Average working interest (%) 	75 		84 				78 		79

(1) Cash flow from operations, cash flow from operations per share and netback or operating netback are not recognized measures under International Financial Reporting Standards. Refer to the Management's Discussion and Analysis for further discussion.

(2) Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

(3) Average wellhead prices are before hedging gains and losses.

(4) Shut-in or suspended wells are cased wells not placed on production or producing wells that have been shut-in.


THIRD QUARTER ACCOMPLISHMENTS

During the three months ended September 30, 2011, Reliable Energy Ltd. made significant progress in the execution of its 2011 business plan aimed at increasing production and proving additional high quality, long-life, oil reserves. The Company's third quarter results included:

- Generating record cash flow from operations, improving 668% over the same period last year to $3.8 million or $0.016 per share.

- Averaging 679 boe/d production with 3 gross (2.3 net) horizontal wells placed on production during the quarter. Reliable exited the quarter at 842 boe/d of 100% light oil.

- Investing $8.2 million in capital expenditures that included the drilling of 7 gross (5.3 net) horizontal wells, four of which were awaiting completion operations at quarter-end.

- Achieving netbacks of $65.24/boe compared to $51.00/boe in the third quarter of 2010 and $73.17/boe in the second quarter of 2011, which are amongst some of the highest in the industry.

- Maintaining a strong financial position with approximately $8.9 million in unutilized credit facilities and net debt to annualized cash flow of 0.78:1.


OUTLOOK

Reliable continues to execute its business plan of increasing production and cash flow, while identifying new reserves through exploration. In keeping with this strategy, the Company increased its 2011 capital spending budget to $26.5 million from $24.5 million in order to drill an additional 1 gross (0.8 net) horizontal well for a total of 11 gross (8.3 net) horizontal wells during the second half of 2011. In addition, Reliable has committed to participating in 2 gross (0.3 net) non-operated horizontal wells in the Kirkella area during the fourth quarter.

Reliable continued to deliver strong operational and financial results during the third quarter and it expects to exceed its annual production guidance, increasing to 730 bbls/d with 2011 exit production increasing to between 1,050 and 1,150 bbls/d. Producing in excess of 1,000 bbls/d of light oil by year-end represents a major milestone for Reliable.

With the increase in production, Reliable expects annual cash flow from operations to increase to $14.0 million based on an average $90.80/bbl.

The Company's revised 2011 guidance is as follows:

                                             Previous                  Revised
                                             Guidance                 Guidance
Production 				
  Average annual oil production             720bbls/d                730bbls/d
  Exit oil production              900 - 1,000 bbls/d     1,050 - 1,150 bbls/d
Cash flow from operations               $13.1 million            $14.0 million
Capital expenditures                    $24.5 million            $26.5 million
Wells drilled - net                              12.8                     13.5
Pricing
  Average annual crude oil WTI          CDN$90.00/bbl            CDN$90.80/bbl

The increased spending budget in 2011 will be funded through a combination of cash flow and available bank lines. Projected net debt at year-end is estimated to be $14.0 million and net debt to annual cash flow ratio of 1.0 times.


ABOUT RELIABLE

Reliable Energy Ltd. is an Alberta based junior oil company with a strong exploration component that commenced operations in 2005. Reliable's activities are primarily focused in the Kirkella area situated on the Saskatchewan/Manitoba border where it holds over 90,000 net acres of undeveloped lands. Kirkella is a Bakken oil rich prospect area that possesses high operating margins and multiple formations potential. The Company has an inventory of approximately 450 net horizontal drilling locations identified in the Kirkella region. Reliable's second focus area is in Blaine County, Montana, where the Company holds almost 100,000 net undeveloped acres on an emerging Bakken oil play.

Reliable's goal is to become a low cost, value added growth company. The Company's strategy is to concentrate on exploration and development drilling activities in oil rich core areas. Reliable will continue to build on its highly prospective light oil land position in Manitoba/Saskatchewan and Montana and, through prudent development, add to its reserves and production base with the objective of providing sustained future growth and superior returns to shareholders.

Common shares of Reliable Energy Ltd. are listed for trading on the TSX Venture Exchange under the symbol REL.


ADVISORY:

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, all information under "Outlook" and the first two paragraphs of "About Reliable" are forward-looking statements. Although Reliable believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Reliable can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and Reliable undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such Act.

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.



Contact Information

Reliable Energy Ltd.
Murray Swanson, President& CEO
403.231.4481
mswanson@reliableenergy.ca

Reliable Energy Ltd.
John Newman, VP Finance & CFO
403.231.4486
jnewman@reliableenergy.ca

Reliable Energy Ltd.
Suite 310 602 - 11th Avenue S.W.
Calgary, Alberta T2R 1J8
403.266-2640
403.266-2656 (FAX)
www.reliableenergy.ca