Reef Resources Ltd.

Reef Resources Ltd.

August 2, 2004

Para Service Inc.

A19, 6120 – 2nd St S.E. Calgary, Alberta

T2H 2L8

Attention: Brian Herman

Reef recently acquired a suspended oil and gas property in southwestern Ontario. After our first two months of operation it was evident that significant paraffin deposition was plugging the tubing string and flow lines. The common local practice was to circulate hot water in order to de-wax tubing and flow lines. This was occurring every two to three weeks.

Over the years I had heard success stories on the ENERCAT parrafin control tool from Para Service Inc. We installed an ENERCAT tool in well #1 in mid April 2004 and have since not seen any paraffin deposition in the tubing string or flow line. The well has performed flawlessly and has encountered no down time and has achieved optimum production.

We will be installing Enercat tools in the remainder of our wells and would recommend this technology to anyone who is dealing with paraffin problems.



Arnie Hansen
Reef Resources Ltd.