Redcliffe Announces 2009 Financial Results, Filing of 2009 Year-End Disclosure Documents, and Supplemental Q1 2010 Reserve Infor

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Redcliffe Exploration Inc. ("Redcliffe" or the "Company") (TSX VENTURE:RXP.A)
(TSX VENTURE:RXP.B) is pleased to announce that it has filed its audited
consolidated financial statements and related Management's Discussion and
Analysis as of and for the year ended December 31, 2009 with Canadian securities
regulatory authorities. Redcliffe has also filed its Annual Information Form,
which includes the Company's reserve data and other oil and gas information for
the year ended December 31, 2009 as required by National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities. These filings are available
for review at www.sedar.com.


Highlights

- Production decreased 17% to 862 boe/d for Q4 2009 and increased 1% to 952
boe/d for 2009 compared to the corresponding periods in 2008. Q4 2009 production
of 862 boe/d held steady compared to Q3 2009 production of 864 boe/d.


- Petroleum and natural gas sales decreased 40% to $2,903,000 for Q4 2009 and
44% to $12,127,000 for 2009 compared to the corresponding periods in 2008. Lower
commodity prices in 2009 compared to 2008, and especially lower natural gas
prices which were down 51% from 2008 average levels, were the primary
contributing factors to lower petroleum and natural gas sales and have had a
corresponding impact on cash flows from operations in 2009.


- Net debt decreased 53% to $6,386,000 at December 31, 2009, compared to
$13,472,000 at December 31, 2008.


- Net capital expenditures totaled $3,192,000 for Q4 2009 and $8,462,000 for
2009. During Q4 2009, the Company drilled 2 (1.25 net) wells, which resulted in
1 (0.25 net) oil well and 1 (1.00 net) natural gas well, for an overall success
rate of 100% (100% net). For 2009, the Company drilled 5 (3.06 net) wells, which
resulted in 1 (0.25 net) oil well, 3 (2.38 net) natural gas wells and 1 (0.43
net) dry and abandoned well, for an overall success rate of 80% (86% net).


- Proved plus probable reserves decreased 18% to 3,350 Mboe at December 31, 2009
compared to December 31, 2008. The Company further added 371 Mboe of proved plus
probable reserves as a result of its Q1 2010 drilling activities. The reduction
in reserves from 2008 to 2009 was primarily the result of technical revisions
with respect to certain of the Company's wells drilled in previous years, while
production and minor dispositions also contributed to the decrease. Reserve
extensions for the year ended December 31, 2009 were 860 Mboe, replacing 2009
production 2.5 times. As a result of the reduction in reserves, the Company has
not prepared a calculation of finding and development costs since such a
calculation does not provide a meaningful metric. Nevertheless, based on the
results of the 2009 / 2010 winter drilling program, the Company believes it has
established significant reserve potential on a number of its lands that is not
currently reflected in its reserve evaluations under National Instrument 51-101
(see discussion below under "Outlook").




                                   Three Months Ended            Year Ended
                                          December 31           December 31
                                  ------------------------------------------
Financial                            2009        2008      2009        2008
----------------------------------------------------------------------------
($ thousands, except
 per share amounts)

Petroleum and natural gas sales     2,903       4,824    12,127      21,517
Funds from operations (1)             738       1,761     3,694       8,782
  Per basic and diluted share        0.01        0.02      0.03        0.11
Cash provided by operating
 activities                           826       2,952     2,952       8,875
  Per basic and diluted share        0.01        0.03      0.03        0.11
Net loss                            2,058         706     6,633          74
  Per basic and diluted share        0.02        0.01      0.06           -
Capital expenditures, net           3,192       5,634     8,462      18,730
Weighted-average shares (thousands)
  Basic and diluted               126,494      86,475   108,136      78,295



Capital Structure                     December 31, 2009   December 31, 2008
----------------------------------------------------------------------------
($ thousands, except share amounts)

Working capital deficiency (2)                    1,798               4,885
Bank debt                                         4,588               8,587
Net debt (3)                                      6,386              13,472
Total assets                                     62,283              66,683
Shares outstanding (thousands)
  Class A                                       118,508              74,235
  Class B                                         1,494               1,494

----------------------------------------------------------------------------

(1) Funds from operations is calculated as cash provided by operating
    activities and adding changes in non-cash working capital and asset
    retirement expenditures, if any. Funds from operations per share is
    calculated using the basic and diluted weighted-average number of
    shares for the period. Funds from operations and funds from operations
    per share are used to analyze the Company's operating performance and
    leverage. Funds from operations and funds from operations per share do
    not have standardized measures prescribed by GAAP and, therefore, may
    not be comparable with calculations of similar measures for other
    companies.

(2) Working capital deficiency includes only accounts receivable, prepaid
    expenses and deposits, and accounts payable and accrued liabilities.

(3) Net debt represents the sum of working capital deficiency and bank
    debt.



                                   Three Months Ended            Year Ended
                                          December 31           December 31
                                  ------------------------------------------
Operations                           2009        2008      2009        2008
----------------------------------------------------------------------------

Daily production
  Crude oil and condensate (bbl/d)    155         284       173         203
  Natural gas liquids (bbl/d)         111          97       123         106
  Natural gas (Mcf/d)               3,577       3,943     3,936       3,791
  Oil equivalent (boe/d @ 6:1)        862       1,038       952         941
  Per million diluted shares          6.8        12.0       8.8        12.0
Average prices (4)
  Crude oil and condensate ($/bbl)  73.05       60.96     61.82       96.61
  Natural gas liquids ($/bbl)       33.43       29.90     26.23       49.24
  Natural gas ($/Mcf)                4.62        8.11      4.81        8.90
  Oil equivalent ($/boe)            36.57       50.50     34.89       62.48
Netback
  Operating netback ($/boe) (5)     15.39       23.02     16.48       34.41
  Realized gain (loss) on financial
   derivatives ($/boe)                  -        1.21      0.51       (1.10)
  General and administrative
   ($/boe)                          (5.43)      (4.96)    (5.36)      (6.41)
  Interest ($/boe)                  (0.66)      (0.84)    (1.00)      (1.39)
  Funds from operations ($/boe)      9.30       18.44     10.63       25.50
Drilling activity
  Gross wells                        2.00        3.00      5.00        8.00
  Net wells                          1.25        0.83      3.06        4.35
  Success rate, net wells             100%        100%       86%        100%



Undeveloped Land                      December 31, 2009   December 31, 2008
----------------------------------------------------------------------------

Undeveloped land - gross (acres)                115,443             105,769
Undeveloped land - net (acres) (6)               79,386              71,709
Undeveloped land value - net
 ($ thousands) (7)                               18,106              13,329

----------------------------------------------------------------------------

(4) Average prices are before the deduction of transportation costs; oil
    equivalent includes sulphur sales.

(5) Operating netback equals petroleum and natural gas sales less
    royalties, operating expenses and transportation costs, calculated on a
    boe basis. Operating netback does not have a standardized measure
    prescribed by GAAP and therefore may not be comparable with the
    calculation of similar measures for other companies.

(6) Includes Company share of option lands held through Redcliffe Land
    Fund, LLC.

(7) Internally evaluated Company share of undeveloped land value, including
    estimate of Company share of option lands held through Redcliffe Land
    Fund, LLC.



Reserve Data and Other Oil and Gas Information

The Company's reserves were evaluated at December 31, 2009 by McDaniel &
Associates Consultants Ltd. ("McDaniel") using their January 1, 2010 forecasted
price and cost assumptions. The Company undertook a significant 2009 / 2010
winter drilling program that extended into Q1 2010 and three wells of the winter
drilling program were not captured in the December 31, 2009 reserve evaluation
due to their timing. To provide more meaningful information with respect to the
Company's reserves and net present value of future net revenues, at the request
of the Company, McDaniel evaluated the three wells drilled in Q1 2010 on the
same basis and using the same forecasted price and cost assumptions as contained
in the December 31, 2009 year-end reserve evaluation. McDaniel prepared an
addendum to their December 31, 2009 reserve evaluation and the Company has
disclosed information below related to the three wells drilled in Q1 2010 as
supplemental information to its December 31, 2009 reserve disclosures. Such
supplemental disclosure has not been included in the Company's Annual
Information Form for the year ended December 31, 2009. The estimates of reserves
and net present value and future net revenues for individual properties may not
reflect the same confidence level as estimates of reserves and net present value
and future net revenues for all properties due to the effects of aggregation.
Further, at the date of preparation of the Q1 2010 supplemental information, one
well had been completed and tested while the remaining two wells were awaiting
completion. Consequently, preparation of estimates of reserves and net present
value and future net revenues for Q1 2010 activity was limited by available
information.


Reserves

The following table summarizes the Company's gross (working interest before
royalties) and net (working interest after royalties) interests in proved and
probable reserves at December 31, 2009, as assessed by McDaniel using their
January 1, 2010 forecasted price and cost assumptions. Supplemental disclosure
is provided for Q1 2010 drilling activity.




                                 Summary of Reserves at December 31, 2009(1)
                             -----------------------------------------------
                                   Light/Medium Oil           Natural Gas(4)
                                Gross(2)      Net(3)    Gross(2)      Net(3)
----------------------------------------------------------------------------
                                  (Mbbl)      (Mbbl)      (MMcf)      (MMcf)

Proved
 Producing                        284.5       244.7     4,422.4     3,614.5
 Non-Producing                     29.2        23.4       874.4       763.3
 Undeveloped                       35.1        28.1        11.2         9.0
----------------------------------------------------------------------------
Total Proved                      348.8       296.2     5,308.0     4,386.8

Probable                          241.8       200.2     6,999.8     5,904.1
----------------------------------------------------------------------------
Total Proved plus Probable        590.6       496.4    12,307.8    10,290.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------


                                 Summary of Reserves at December 31, 2009(1)
                             -----------------------------------------------
                                Natural Gas Liquids  Total Oil Equivalent(5)
                                Gross(2)      Net(3)    Gross(2)      Net(3)
----------------------------------------------------------------------------
                                  (Mbbl)      (Mbbl)      (Mboe)      (Mboe)

Proved
 Producing                        255.9       153.3     1,277.4     1,000.4
 Non-Producing                     29.1        19.7       204.0       170.4
 Undeveloped                        0.3         0.2        37.3        29.8
----------------------------------------------------------------------------
Total Proved                      285.2       173.3     1,518.7     1,200.6

Probable                          422.6       273.5     1,831.0     1,457.7
----------------------------------------------------------------------------
Total Proved plus Probable        707.8       446.8     3,349.7     2,658.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------



  Addendum: Summary of Reserves Attributable to Q1 2010 Drilling Activity(1)
 ---------------------------------------------------------------------------
                                   Light/Medium Oil           Natural Gas(4)
                                Gross(2)      Net(3)    Gross(2)      Net(3)
----------------------------------------------------------------------------
                                  (Mbbl)      (Mbbl)      (MMcf)      (MMcf)

Proved Non-Producing                  -           -        97.0        91.7
----------------------------------------------------------------------------
Total Proved                          -           -        97.0        91.7

Probable                              -           -     1,664.6     1,552.0
----------------------------------------------------------------------------
Total Proved plus Probable            -           -     1,761.6     1,643.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------


  Addendum: Summary of Reserves Attributable to Q1 2010 Drilling Activity(1)
 ---------------------------------------------------------------------------
                                Natural Gas Liquids  Total Oil Equivalent(5)
                                Gross(2)      Net(3)    Gross(2)      Net(3)
----------------------------------------------------------------------------
                                  (Mbbl)      (Mbbl)      (Mboe)      (Mboe)
Proved Non-Producing               12.1         9.6        28.3        24.9
----------------------------------------------------------------------------
Total Proved                       12.1         9.6        28.3        24.9

Probable                           65.3        50.9       342.7       309.6
----------------------------------------------------------------------------
Total Proved plus Probable         77.4        60.5       371.0       334.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Numbers in this table are subject to rounding error.

(2) "Gross" means Redcliffe's total working interest reserves before
    royalties owned by others and without including any royalty interest
    owned by Redcliffe.

(3) "Net" means Redcliffe's total working interest reserves and/or royalty
    interest share after deducting the amounts attributable to royalties
    owned by others.

(4) Natural gas volumes include solution gas volumes associated with
    Redcliffe's light and medium crude oil reserves.

(5) Natural gas is converted to barrels of oil equivalent ("boe") at a
    ratio of 6 Mcf of natural gas to 1 barrel of oil.



Net Present Value of Future Net Revenues

The following table summarizes Redcliffe's share of the net present value of its
reserves, prior to provision for income taxes, interest and general and
administrative expenses, at December 31, 2009 as determined by McDaniel using
their January 1, 2010 forecasted price and cost assumptions. Supplemental
disclosure is provided for Q1 2010 drilling activity.




                                   Net Present Value of Future Net Revenues,
                          Before Income Taxes, at December 31, 2009(1)(2)(3)
----------------------------------------------------------------------------
($ thousands)                             0%        5%        10%        15%

Proved
 Producing                         30,422.7  25,005.6   21,376.2   18,786.6
 Non-Producing                      4,859.9   3,054.2    2,159.5    1,673.3
 Undeveloped                          936.1     564.4      322.5      159.0
----------------------------------------------------------------------------
Total Proved                       36,218.7  28,624.3   23,858.1   20,619.0

Probable                           42,971.2  29,745.6   22,022.2   16,995.6
----------------------------------------------------------------------------
Total Proved plus Probable         79,189.9  58,369.9   45,880.4   37,614.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------


                         Addendum: Net Present Value of Future Net Revenues,
     Before Income Taxes, Attributable to Q1 2010 Drilling Activity(1)(2)(3)
----------------------------------------------------------------------------
($ thousands)                             0%        5%        10%        15%

Proved
 Non-Producing                        575.9     532.9      494.4      460.1
----------------------------------------------------------------------------
Total Proved                          575.9     532.9      494.4      460.1

Probable                            6,772.5   5,145.5    4,016.7    3,195.2
----------------------------------------------------------------------------
Total Proved plus Probable          7,348.4   5,678.4    4,511.0    3,655.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Numbers in this table are subject to rounding error.

(2) Values are net of abandonment liabilities.

(3) The net present values of future net revenues may not represent fair
    market value.



Price Forecasts

The following table summarizes price forecasts used to determine future revenues
from the Company's reserves.




                           Edmonton    Alberta AECO                        
                   WTI        Light      Spot Price                Exchange
Year         Crude Oil    Crude Oil     Natural Gas    Inflation       Rate
----------------------------------------------------------------------------
              (US$/bbl)     (C$/bbl)      (C$/MMBtu)     (%/year)   (US$/C$)

2010             80.00        83.20            6.05          2.0       0.95
2011             83.60        87.00            6.75          2.0       0.95
2012             87.40        91.00            7.15          2.0       0.95
2013             91.30        95.00            7.45          2.0       0.95
2014             95.30        99.20            7.80          2.0       0.95
2015             99.40       103.50            8.15          2.0       0.95
2016            101.40       105.60            8.40          2.0       0.95
2017            103.40       107.70            8.55          2.0       0.95
2018            105.40       109.80            8.70          2.0       0.95
2019            107.60       112.10            8.90          2.0       0.95
2020            109.70       114.30            9.05          2.0       0.95
2021            111.90       116.50            9.25          2.0       0.95
2022            114.10       118.80            9.45          2.0       0.95
2023            116.40       121.20            9.65          2.0       0.95
2024            118.80       123.70            9.85          2.0       0.95
Thereafter    +2%/year     +2%/year        +2%/year          2.0       0.95



Outlook

Over the past several years, Redcliffe has established a significant acreage
position in the Gold Creek / Wapiti / Karr areas of the Peace River Arch,
specifically targeting liquids-rich multi-zone gas in water-free environments.
As a result, in addition to the stacked multi-zone potential of its acreage, the
Company has assembled a major exposure to two broad resource plays: the Montney
turbidite sand at Karr and Montney siltstone across the majority of its Peace
River Arch lands; and the Nikanassin Formation, also across the majority of its
Peace River Arch lands.


The Company undertook its Q4 2009 / Q1 2010 winter drilling program with the
intention of establishing the reserve potential of its Peace River Arch acreage.
Based on the results of this winter drilling program, the Company believes it
has established significant reserve potential on a number of its lands that is
not currently reflected in its reserve evaluations under National Instrument
51-101. This resource potential is extensive and is estimated by Redcliffe to be
well in excess of 200 bcf of gas in place. However, capital requirements to
establish and develop this potential will also be extensive, with vertical wells
costing approximately $2.5 million and horizontal wells costing approximately $5
million to drill and complete.


A contingent drilling program for the remainder of 2010 has been developed by
the Company to further quantify, test and provide initial development of these
resource gas plays. A total of 9 wells have been tentatively planned for the
remainder of 2010. Of this total, 6 are expected to be gas wells in the
Company's core Peace River Arch areas, although this drilling program may be
impacted by the current low natural gas pricing and our outlook for future
pricing trends as we move through 2010. Most significant to the capital program,
the Company expects to drill or participate in the drilling of 2 horizontal
wells including drilling its first horizontal well at Karr targeting the Montney
turbidite sand. This Karr horizontal well is close to existing infrastructure
and, if successful, is expected to commence production shortly after completion.
Redcliffe believes that the Karr area represents significant reserve and
production upside for the Company, with an intermediate gas producer having
already established the Montney potential through horizontal drilling on
adjacent acreage; such wells have reported test rates of over 5 MMcf/d with 40
bbls/MMcf of associated liquids. Further, due to their depth, Redcliffe expects
the economics of its Karr horizontal wells to be positively affected by the
Alberta Government's Natural Gas Deep Drilling Program. The Company estimates
that up to 2 horizontal wells per section can be drilled on its existing Karr
acreage in several phases targeting the Montney turbidite sand. Redcliffe
maintains an approximate 91% working interest in 15 sections of land over this
prospect. In addition to the Montney turbidite sand, Redcliffe has exposure to
Montney siltstone potential in approximately 94 sections across its Gold Creek /
Wapiti / Karr core areas at an average controlled working interest of
approximately 73%. A horizontal well (WI 20%) is also proposed to test this
siltstone potential in 2010.


The Company plans to drill up to 4 vertical wells in its Gold Creek / Wapiti
core areas targeting multiple zones, including Nikanassin gas. These wells were
specifically identified to provide lower-risk and immediate reserve and
production additions to the Company, while continuing to establish Nikanassin
potential on the Company's acreage. Like the Montney Formation at Karr, the
Nikanassin Formation represents a resource-style play that offers upside with
the predictable nature of a large gas deposit development utilizing horizontal
drilling and multi-stage stimulation techniques. Natural gas liquid content of
the gas varies between 30 and 40 bbls/MMcf, which is expected to greatly enhance
the economic return of each well. Vertical wells drilled to the north and
utilizing optimized fracture completion techniques have achieved initial rates
in the 3 to 5 MMcf/d range and other operators in the area have recently drilled
horizontal Nikanassin wells. Redcliffe estimates that it has exposure to
Nikanassin potential in approximately 88 sections in its Gold Creek / Wapiti /
Karr core areas at an average controlled working interest of approximately 65%.
The Company does not plan on drilling its first Nikanassin horizontal well until
2011.


In addition to its Peace River Arch activities, the Company plans to drill up to
2 horizontal wells at Pembina targeting Cardium oil, and up to 1 vertical well
in another west central Alberta property, targeting oil. Redcliffe has 12 (7.7
net) sections of land with Cardium rights and continues to monitor its position
with respect to this play in order to monetize its potential most effectively.


The planned remaining 2010 drilling program is discretionary and, as of the date
hereof, the Company estimates that it has already fulfilled its outstanding
flow-through expenditure obligations for 2010. Funding for the planned remaining
2010 capital program is currently being established, and may include a number of
sources, including equity, debt, proceeds from the sale of assets, and cash
flows from operations. The Company's bank has extended the review date of the
$14.1 million bank facility to July 31, 2010. The bank has indicated, however,
that based on current reserves and commodity price forecasts, it expects the
bank facility to be reduced, subject to the review of available information
prior to the July 31, 2010 review date. The Company further closed the sale of
certain undeveloped lands in April 2010 for proceeds of approximately $700,000.
Cash flows from operations will be supported through any natural gas price
weakness in 2010 with already established forward sales contracts, averaging
$5.41/GJ ($5.70/Mcf) on 3,000 GJ/d for the period from April 1, 2010 to October
31, 2010.


Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking
statements, including management's assessment of future plans and operations,
expected royalty rates and government incentive programs, sources of funding,
and capital expenditures and the timing thereof, that involve substantial known
and unknown risks, uncertainties and assumptions, certain of which are beyond
the Company's control. Such risks, uncertainties and assumptions include,
without limitation, those associated with oil and gas exploration, development,
exploitation, production, marketing, processing and transportation, loss of
markets, volatility of commodity prices, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital from
internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws and
regulations (including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced, the lack of availability
of qualified personnel or management, fluctuations in foreign exchange or
interest rates, stock market volatility and market valuations of companies with
respect to announced transactions and the final valuations thereof, and
obtaining required approvals of regulatory authorities. The Company's actual
results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements and, accordingly,
no assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. Additional information on these
and other factors that could affect the Company's operations and financial
results are included in reports, including the Company's annual information form
for the financial year ended December 31, 2009, on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com). All subsequent forward-looking statements, whether written or
oral, attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. 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.


BOE may be misleading, particularly if used in isolation. A BOE conversion 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.