Reliable Energy Ltd. Announces 2011 Financial and Operational Results

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


Reliable Energy Ltd. ("Reliable" or the "Company") (TSX VENTURE:REL) is pleased
to report its financial and operational results for the year ended December 31,
2011. In addition, the Company announced today that it has filed, under National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities for the
year ended December 31, 2011, its Form 51-101F1 - Statement of Reserves Data and
Other Oil and Gas Information, Form 51-101F2 - Report on Reserves Data by
Independent Qualified Reserves Evaluator or Auditor and Form 51-101F3 - Report
of Management and Directors on Oil and Gas Disclosure.


The Company's consolidated financial statements and management's discussion and
analysis, along with the NI 51-101 reserves filings and its Annual Information
Form, for the year ended December 31, 2011 are available at www.sedar.com or the
Company's website at www.reliableenergy.ca.


HIGHLIGHTS

Financial and Operational Achievements

For the year ended December 31, 2011, Reliable posted record revenue, production
and cash flow with significant year-over-year gains in all areas.




--  Gross revenue increased 169% to $25.3 million. 
--  Production rose to almost 270,000 bbls, an increase of 122%. 
--  Cash flow soared 328% to $15.0 million or $0.064 per share (basic). 
--  Capital expenditures totalled $27.1 million, up 23% or $5.0 million from
    last year. 
--  Drilled 19 gross (13.5 net) wells, including 18 gross (13.0 net)
    horizontal wells. 
--  Invested $0.8 million in facility upgrades in South Kirkella, thereby
    improving operational costs and efficiencies. 
--  Maintained the Company's land base by spending $1.9 million on re-
    leasing and land acquisition activities. 
--  Increased proved reserves 35% to 957 mbbls, while proved plus probable
    reserves grew 27% to 1,714 mbbls. 
--  Achieved a recycle ratio of 1.3 and 1.6 times for proved and proved plus
    probable reserves, respectively. 
--  Recorded a reserve life index on proved reserves of 2.9 years and 4.1
    years for proved plus probable reserves. 
--  Recorded finding and development costs of $51.48/bbl on proved reserves
    and $42.06/bbl on proved plus probable reserves. These costs increased
    over the prior year due partially to several undeveloped and probable
    locations identified in 2010 being drilled in 2011 with the effect that
    overall reserves increased only marginally. 
--  Achieved operating costs of $13.84/bbl and netbacks of $66.22/bbl at an
    average sales price of $95.12/bbl. 
--  Increased available bank lines to $26.0 million to provide Reliable the
    flexibility for financing future activity.



FINANCIAL AND OPERATING HIGHLIGHTS



----------------------------------------------------------------------------
Years Ended December 31,                        2011       2010     Change  
----------------------------------------------------------------------------
(000s, except per share amounts)                  ($)        ($)         (%)
Financial(1)                                                                
Gross revenue                                 25,342      9,436        169  
Net income (loss)                                338     (1,749)       119  
  Per share - basic                            0.001     (0.008)       113  
  Per share - diluted                          0.001     (0.008)       113  
Cash flow from (used in)                                                    
operations (2)                                15,027      3,510        328  
  Per share - basic                            0.064      0.016        300  
  Per share - diluted                          0.063      0.016        294  
Capital expenditures                          27,060     22,043         23  
Total assets                                  56,154     42,922         31  
Working capital (deficiency)                 (15,100)    (3,681)      (310) 
Shareholders' equity                          31,326     30,088          4  
----------------------------------------------------------------------------
(000s)                                            (#)        (#)         (%)
Share Data                                                                  
At year-end                                  236,793    236,138         --  
Weighted average                                                            
  Basic                                      236,464    213,786         11  
  Diluted                                    240,332    218,953         10  
----------------------------------------------------------------------------
                                                                         (%)
Operational                                                                 
Production                                                                  
  Light crude oil (bbls/d)                       739        327        126  
  Natural gas (mcf/d)                             --         32         --  
  Total (boe/d)                                  739        333        122  
  Total (boe)                                269,626    121,511        122  
Average wellhead prices (3)                                                 
  Light crude oil ($/bbl)                      95.12      78.34         21  
  Natural gas ($/mcf)                             --       4.00         --  
  Total ($/boe)                                95.12      77.45         23  
Operating cost ($/boe)                         13.84      12.75          9  
Operating netback ($/boe)                      66.22      51.36         29  
Reserves                                                                    
  Proved (mboe) (4)                              957        711         35  
  Proved plus probable (mboe) (4)              1,714      1,352         27  
  Total net present value                                                   
  - proved plus probable                                                    
  (10% discount) ($000s)(5)                   57,137     44,586         28  
Undeveloped land (net acres)                 183,495    197,426         (7) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Years Ended December 31,                            2011      2010    Change
----------------------------------------------------------------------------
                                                                         (%)
Gross (net) wells drilled                                                   
  Oil (#)                                      19 (13.5)  12 (8.2)          
  Gas (#)                                        -- (--)   -- (--)          
  Awaiting completion (#)                        -- (--)   4 (3.5)          
  Shut-in or suspended (#)(6)                    -- (--)  10 (6.7)          
  Dry and abandoned (#)                          -- (--)   3 (2.2)          
----------------------------------------------------------------------------
  Total (#)(7)                                 19 (13.5) 29 (20.6)          
Average working interest (%)                          71        71          
----------------------------------------------------------------------------



(1) The selected financial information for 2011 and 2010 has been prepared in
accordance with International Financial Reporting Standards ("IFRS").
Comparative information for 2009 and 2008 has been prepared using previous
Canadian generally accepted accounting principals.


(2) Cash flow from (used in) operations, cash flow from (used in) operations per
share and operating netback are not recognized measures under IFRS. Refer to the
Management's Discussion and Analysis for further discussion.


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

(4) 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.


(5) Before income taxes.

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


(7) Included in the total number of wells drilled in 2011 were 3 gross (0.7 net)
non-operated wells.


CORPORATE TRANSACTION UPDATE

As announced on March 15, 2012, Reliable entered into an arrangement agreement
with Point Energy Corp. ("Crescent Point"), a minority shareholder of Reliable,
whereby Crescent Point will acquire all of the issued and outstanding common
shares of Reliable not already held by Crescent Point for approximately $99.1
million, including net debt of $20.0 million at March 14, 2012 (the
"Arrangement"). Subsequent thereto, Reliable and Crescent Point entered into an
amended and restated arrangement agreement dated effective March 26, 2012, to
make minor changes to the Plan of Arrangement. Under the terms of the
Arrangement, each common share of Reliable shall be exchanged for 0.00794 common
shares of Crescent Point. Reliable shareholders will receive an aggregate value
of $0.362 per common share of Reliable based on a five-day weighted average
trading price per Crescent Point share of $45.61, which represents a premium of
19% to the closing price of Reliable common shares on the TSX Venture Exchange
as at March 14, 2012. The Arrangement is expected to be tax-deferred for
Canadian resident shareholders of Reliable and is subject to stock exchange,
court as well as shareholder approval. An information circular regarding the
Arrangement was sent to Reliable's shareholders on April 3, 2012 for a meeting
to be held on May 1, 2012 with closing expected shortly thereafter.


ABOUT RELIABLE

Reliable is a Calgary, Alberta based oil and gas exploration and production
company with its core properties located in the Kirkella region of southeastern
Saskatchewan/southwestern Manitoba and secondary properties located in Alberta
and Blaine County, Montana. Reliable's focus is on the production of light sweet
crude oil from the Bakken/Three Forks formations in southwestern Manitoba, which
is a pervasive, oil charged reservoir that is exploited through the use of
horizontal drilling technology and a multi-stage fracturing completion process.
Reliable's significant land base in the Kirkella region includes both proved and
probable crude oil reserves in the Bakken/Three Forks as well as multi-zone
potential in the Lodgepole and other formations.  Reliable has no current
production from its Alberta or Montana properties.


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, information under "Corporate Transaction
Update" as it relates to the expected tax deferment for Canadian resident
shareholders of Reliable is a forward-looking statement. 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.