Redcliffe Announces Q2 2008 Financial Results

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

Redcliffe Exploration Inc. (TSX VENTURE:RXP.A)(TSX VENTURE:RXP.B) ("Redcliffe"
or the "Company") is pleased to announce that it has filed its unaudited interim
financial statements and related Management's Discussion and Analysis as of June
30, 2008 and for the three and six months then ended with Canadian securities
regulatory authorities. These filings are available for review at www.sedar.com.


Q2 2008 Highlights:

- Production increased 95% to an average of 983 boe/d for Q2 2008, compared to
503 boe/d for Q2 2007. Production also became less gas weighted from 79% in Q2
2007 to 68% in Q2 2008.


- Petroleum and natural gas sales increased 213% to $6,565,000, compared to
$2,095,000 in Q2 2007. Average prices realized for Q2 2008 increased 60% to
$73.38/boe, compared to $45.74/boe for Q2 2007.


- Operating netback increased 54% to $44.31/boe for Q2 2008, compared to
$28.86/boe for Q2 2007.


- Funds from operations increased 288% to $2,854,000, compared to $735,000 for
Q2 2007.


- Capital expenditures totaled $4,413,000 for Q2 2008. Redcliffe drilled 3 (2.5
net) wells during the quarter, resulting in 1 (1 net) oil well and 2 (1.5 net)
gas wells, for a 100% success rate. The oil well has commenced production in
August while one of the gas wells is currently undergoing completion activities.
The Company expects to commence completion operations on the second gas well in
September. Redcliffe also acquired a number of parcels of land at Crown land
sales during the quarter. At June 30, 2008, the Company had approximately 35,800
net acres of undeveloped land. The Company has subsequently acquired additional
lands which has effectively doubled its net undeveloped land acreage in the
Peace River Arch since Q1 2008.


- Completed an equity financing for gross proceeds of approximately $6.6 million.

- Net debt was reduced to $11,058,000 at June 30, 2008, or 0.97 times annualized
Q2 2008 funds from operations. The Company's bank facility was increased to $14
million effective July 31, 2008.




                                         Three months            Six months
                                        ended June 30         ended June 30
                                --------------------------------------------
Financial                        2008            2007    2008          2007
----------------------------------------------------------------------------
($ thousands, except per share
 amounts)

Petroleum and natural gas
 sales                          6,565           2,095  11,282         2,762
Funds from operations (1)       2,854             735   5,010           737
  Per basic and diluted share    0.04            0.02    0.07          0.02
Cash provided by operating
 activities                     2,456             986   4,555           573
  Per basic and diluted share    0.03            0.03    0.06          0.02
Net income (loss) and other
 comprehensive income (loss)     (310)         (1,242) (1,224)        1,328
  Per basic and diluted share       -           (0.03)  (0.02)         0.04
Capital expenditures            4,413           2,714   8,622         5,668
Weighted-average shares
 (thousands)
  Basic                        76,729          36,805  73,036        31,494
  Diluted                      77,128          37,071  73,256        31,860


Capital Structure                       June 30, 2008     December 31, 2007
----------------------------------------------------------------------------
($ thousands, except share
 amounts)

Working capital deficiency (2)                  3,713                 9,144
Bank debt                                       7,345                 4,225
Net debt                                       11,058                13,369
Bank facility (3)                              12,600                 9,200
Total assets                                   60,264                56,922
Shares outstanding (thousands)
 Class A                                       65,483                54,406
 Class B                                        1,494                 1,494

                                         Three months            Six months
                                        ended June 30         ended June 30
                                --------------------------------------------
Operations                       2008            2007    2008          2007
----------------------------------------------------------------------------

Daily production
 Crude oil and condensate
 (bbl/d)                          188               3     151             2
 Natural gas liquids (bbl/d)      124             105     141            70
 Natural gas (mcf/d)            4,027           2,373   3,939         1,544
 Oil equivalent (boe/d @ 6:1)     983             503     948           330
 Per million diluted shares      12.7            13.6    12.9          10.4
Average prices (4)
 Crude oil and condensate
 ($/bbl)                       128.69           67.21  116.32         65.71
 Natural gas liquids ($/bbl)    55.85           44.53   55.92         45.30
 Natural gas ($/mcf)            10.19            7.65    9.27          7.72
 Oil equivalent ($/boe)         73.38           45.74   65.36         46.26
Netback
 Operating netback ($/boe) (5)  44.31           28.86   38.60         28.47
 Realized loss on financial
  instruments ($/boe)           (2.69)              -   (1.40)            -
 General and administrative
  ($/boe)                       (8.19)          (6.22)  (6.66)       (11.72)
 Interest ($/boe)               (1.54)          (6.59)  (1.53)        (4.40)
 Funds from operations ($/boe)  31.89           16.05   29.01         12.35
Drilling activity
 Gross wells                     3.00            1.00    3.00          4.00
 Net wells                       2.50            1.00    2.50          1.93
 Success rate, net wells          100%            100%    100%           91%
----------------------------------------------------------------------------

(1) Funds from operations is calculated as cash provided by operating 
    activities and adding changes in non-cash working capital. 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, less accounts payable and accrued liabilities.

(3) Increased to $14 million effective July 31, 2008.

(4) Average prices are before the deduction of transportation costs.

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



Outlook:

Redcliffe's 2008 focus has been to increase production through the tie-in of
significant behind-pipe production, to increase production and reserves from
additional drilling activities in our core areas, and to significantly expand
our land position and high-impact drilling opportunities for 2009 and beyond.


Our 2008 drilling activity to date has met with excellent success and the
Company anticipates production additions as a result of such drilling in Q3 and
Q4 2008. Similarly, the tie-in and commencement of production in Q2 2008 from
our significant Wapiti 7-3 light oil discovery has progressed smoothly and we
currently await the receipt of GPP status to allow production of this well to
its full potential. Negatively affecting the Company, however, were operational
issues we experienced at a third-party compression facility at Gold Creek in Q2
2008, including a fire at the facility as well as a scheduled turnaround in
June. Additionally, the Company continued to be affected by technical issues
with the facility as it was unable to adequately handle the high hydrocarbon
liquid content of the Company's Gold Creek gas wells during production
operations in the quarter. As of the date hereof, most of the Company's 450
boe/d of affected Gold Creek net production remains shut-in due to pipeline
capacity constraints downstream of the 2-28 compressor station, although gas
production has recommenced this week on one of the affected wells. Our estimated
shut-in Gold Creek production does not include two recently cased gas wells
currently undergoing completion activities. Redcliffe anticipates a gradual
return of Gold Creek production through this autumn but cannot predict rates or
exact timing. The Company and the other working interest partners continue to
work diligently to address these issues and are exploring a number of near and
longer-term alternatives; these include constructing additional pipelines and a
potential new facility to bring Gold Creek production to market at its full
potential.


Including behind-pipe production, our current production capability is estimated
at 1,500-1,600 boe/d. However, given the uncertainty the Company is facing with
respect to its Gold Creek production and the timing of any final remedy to the
operational issues, Redcliffe is unable to provide production guidance for the
second half of 2008 at this time. Our target 2008 exit rate of 2,000 boe/d,
while remaining consistent with our drilling program, may also be impacted due
to these near term infrastructure limitations. We currently plan to drill 4
wells in the Gold Creek area in the second half of 2008. We will also pursue new
opportunities in the general Gold Creek area and anticipate an announcement in
that regard during the first week of September 2008.


For the second half of 2008, the Company expects to drill a total of 5-7 gross
wells. One of such wells was drilled, cased and rig-released in July, with
completion activities currently ongoing. The capital expenditure program for the
remainder of 2008 is expected to be funded from operating cash flows and bank
debt.


Our 2008 objective of significantly expanding our land position and high-impact
drilling opportunities for 2009 and beyond has met with excellent success. To
the date hereof, the Company has acquired significant undeveloped land in 2008,
almost entirely in its core area of Wapiti/Gold Creek. As a result, the
Company's net undeveloped land base in the Peace River Arch has doubled since Q1
2008. The Company currently has approximately 72,500 gross (47,520 net) acres of
undeveloped land with an average working interest of approximately 66%. On a net
basis, our undeveloped lands are split approximately 51% in the Peace River Arch
and 49% in Greater Pembina, while our average working interests on such lands
are approximately 69% in the Peace River Arch and 63% in Greater Pembina. For
the remainder of 2008, we will continue to build our land base and drilling
inventory, which we currently maintain at 20-25 drilling locations.


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 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.