Redcliffe Announces Q1 2009 Financial Results

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 unaudited
interim consolidated financial statements and related Management's Discussion
and Analysis as of and for the three months ended March 31, 2009 with Canadian
securities regulatory authorities. These filings are available for review at
www.sedar.com.


Q1 2009 Highlights:

- Production increased 42% to a record quarterly average of 1,297 boe/d for Q1
2009, compared to 914 boe/d for Q1 2008.


- Petroleum and natural gas sales stayed flat at $4,715,000 for Q1 2009,
compared to $4,717,000 in Q1 2008. As a result of significantly decreased
benchmark commodity prices, average prices realized for Q1 2009 decreased 29% to
$40.38/boe, compared to $56.72/boe for Q1 2008.


- Operating netback decreased 39% to $19.69/boe for Q1 2009, compared to
$32.45/boe for Q1 2008.


- Funds from operations decreased 12% to $1,888,000, compared to $2,156,000 for
Q1 2008. On a per boe basis, fund from operations decreased 38% to $16.18/boe
for Q1 2009, compared to $25.92/boe for Q1 2008.


- Net loss increased 32% to $1,208,000 for Q1 2009, compared to a net loss of
$914,000 for Q1 2008.


- Net capital expenditures totaled $1,956,000 for Q1 2009. Redcliffe drilled 1
(0.20 net) well during the quarter, resulting in 1 (0.20 net) gas well, for an
overall success rate of 100%.


- Net debt decreased 10% to $12,148,000 at March 31, 2009, compared to
$13,472,000 at December 31, 2008.


- Completed the acquisition of First Western Financial Ventures Inc., resulting
in the injection of approximately $1.6 million in working capital, before
transaction costs, and the issuance of 3,361,800 Class A shares.




                                                     Three            Three
                                              months ended     months ended
Financial                                   March 31, 2009   March 31, 2008
----------------------------------------------------------------------------
($ thousands, except per share and
 share amounts)

Petroleum and natural gas sales                      4,715            4,717
Funds from operations (1)                            1,888            2,156
 Per basic and diluted share                          0.02             0.03
Cash provided by operating activities                1,259            2,099
 Per basic and diluted share                          0.01             0.03
Net loss and comprehensive loss                      1,268              914
 Per basic and diluted share                          0.01             0.01
Capital expenditures, net                            1,956            4,209
Weighted-average shares (thousands)
 Basic                                              90,982           69,344
 Diluted                                            90,982           69,344



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

Working capital deficiency (2)                       1,956            4,885
Bank debt                                           10,192            8,587
Net debt (3)                                        12,148           13,472
Total assets                                        62,731           66,683
Shares outstanding (thousands)
 Class A                                            77,508           74,235
 Class B                                             1,494            1,494



                                                     Three            Three
                                              months ended     months ended
Operations                                  March 31, 2009   March 31, 2008
----------------------------------------------------------------------------

Daily production
 Crude oil and condensate (bbl/d)                      223              115
 Natural gas liquids (bbl/d)                           182              157
 Natural gas (mcf/d)                                 5,352            3,851
 Oil equivalent (boe/d @ 6:1)                        1,297              914
 Per million diluted shares                           14.3             13.2
Average prices (4)
 Crude oil and condensate ($/bbl)                    48.13            96.14
 Natural gas liquids ($/bbl)                         25.55            55.97
 Natural gas ($/mcf)                                  6.65             8.31
 Oil equivalent ($/boe)                              40.38            56.72
Netback
 Operating netback ($/boe) (5)                       19.69            32.45
 Realized gain on financial derivatives
  ($/boe)                                             1.53                -
 General and administrative ($/boe)                  (4.17)           (5.01)
 Interest ($/boe)                                    (0.87)           (1.52)
 Funds from operations ($/boe)                       16.18            25.92
Drilling activity
 Gross wells                                          1.00                -
 Net wells                                            0.20                -
 Success rate, net wells                               100%               -

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

(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 is used to
    analyze the Company's operating performance and leverage. Funds from
    operations does not have a standardized measure 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.
(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.



Outlook:

Recent global financial events have had a significant impact on the junior oil
and gas sector, resulting in lower commodity prices, tightening of capital
markets for both debt and equity, and lower share valuations. Understandably,
these events have affected Redcliffe and management has taken measures to assess
the impact to the Company and to address the issues that have arisen or may
arise in the foreseeable future. As a result of lower commodity prices, and
especially natural gas prices, the Company has adjusted its capital expenditure
budget for 2009, focusing such expenditures on meeting outstanding flow-through
obligations for 2009, optimizing existing production, and drilling lower risk
wells. To this end, the Company currently plans to drill up to six additional
gross wells on existing lands in the Peace River Arch and Greater Pembina. The
Company has also continues to take measures to reduce other costs related to
ongoing operations, such as operating expenses and general & administrative
expenses.


Although difficult economic times are upon the industry, such times also bring
opportunities, and the Company recognizes that it is essential to effect growth
to the extent possible in such an environment. To this end, the Company is
identifying opportunities to take advantage of recent Alberta drilling
incentives and royalty program modifications, and to undertake corporate or
property transactions which add scale, future potential and improved balance
sheet strength. We expect that commodity prices and the global economy will
improve in 2010, which will drive growth in the future, and we are positioning
ourselves to take advantage of such. We also recognize that the current
environment provides the opportunity to develop our future capital expenditure
programs, and to take advantage of business opportunities that can drive future
growth. We envision expanding our capital expenditure budget once the commercial
environment improves and will, in the interim, work towards enhancing our
financial strength. As a company, we continue to focus on per share value
drivers, and with our strong management and technical teams, our excellent land
base, and our inventory of high-impact drilling opportunities, we remain
confident and optimistic about our future.


Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking
statements, including management's assessment of future plans and operations,
and capital expenditures and the timing thereof, that involve substantial known
and unknown risks and uncertainties, certain of which are beyond the Company's
control. Such risks and uncertainties include, without limitation, risks
associated with oil and gas exploration, development, exploitation, production,
marketing, processing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, 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, increased competition, 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, including the amount of proceeds, that the Company
will derive there from. 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 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.