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

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 three and nine months
ended September 30, 2011.




HIGHLIGHTS                                                                  
                                                                            
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                               Three Months Ended         Nine Months Ended 
                                     September 30,             September 30,
                            2011     2010  Change     2011     2010  Change 
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(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 
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(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 
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                             Three Months Ended           Nine Months Ended 
                                   September 30,               September 30,
                          2011     2010  Change      2011      2010  Change 
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                                             (%)                         (%)
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)        
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 Total (#)              7 (5.3) 11 (9.3)         13 (10.2) 23 (18.3)        
Average working                                                             
 interest (%)               75       84                78        79         
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(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:



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                                            Previous                Revised 
                                            Guidance               Guidance 
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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 
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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.