Reece Energy announces $30 million increase to capital budget and $23 million financing



    MEDICINE HAT, AB, July 17 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece" or the "Company") is pleased to announce that it has
increased its capital budget for 2008 by an additional $30 million. This
increase is in addition to the $15 million dollar increase announced May of
this year bringing the total capital budget for 2008 to $66 million.
    In order to partially fund the increased capital expenditures, Reece has
entered into an agreement with a syndicate of underwriters led by Wolverton
Securities Ltd. ("Wolverton" or the "Agent") and including Evergreen Capital
Partners Inc. and CIBC World Markets to raise up to up to $20 million with
provision for an overallotment of up to $3 million (the "Financing") through
the issuance of common shares of the Company ("Common Shares") at a price to
be determined in the context of the market.
    This increase has been approved as a result of the Company's drilling
success, increased land and opportunity generation and the exceptional oil and
gas pricing environment. The new capital will be used to fund an expanded
drilling program, ongoing capital program and for general corporate purposes.
The increased expenditures will be funded from existing internal sources as
well as the Financing.
    All sales will be made on a private placement basis pursuant to
exemptions from the prospectus requirements of applicable securities laws. The
closing of the offering is expected to occur on or about August 22, 2008 and
is subject to certain conditions including, but not limited to, receipt of all
necessary regulatory approvals including the approval of the TSX Venture
Exchange. The Common Shares will be subject to a four month hold from the date
of the closing.

    Reece is a growth oriented junior oil and gas company focused on creating
shareholder value by growing per share production and reserves through
acquisitions and a focused exploration and development plan. Reece's core
producing oil and gas assets are located in Saskatchewan. Reece has a
prospective Bakken land position which it has already begun to develop.
    Reece has approximately 32,500,000 Class A common shares outstanding
before this financing.

    This press release is not an offer of securities for sale in the United
States. These securities, have not been, and will not be registered under the
United States Securities Act 1933, as amended, or the securities laws of any
state, and may not be offered or sold in the United States unless an exemption
from registration is available.

    Reece is a publicly held oil and gas company headquartered in
Medicine Hat, Alberta, Canada that trades on the TSX Venture Exchange under
the symbol "RXR".

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Certain statements in this news release including (i) statements that may
contain words such as "anticipate", "could", "expect", "seek", "may" "intend",
"will", "believe", "should", "project", "forecast", "plan" and similar
expressions, including the negatives thereof, (ii) statements that are based
on current expectations and estimates about the markets in which Reece
operates and (iii) statements of belief, intentions and expectations about
developments, results and events that will or may occur in the future,
constitute "forward-looking statements" and are based on certain assumptions
and analysis made by Reece. Forward-looking statements in this news release
include, but are not limited to, statements with respect to future capital
expenditures, including the amount, nature and timing thereof; oil and natural
gas prices and demand; other development trends within the oil and natural gas
industry; business strategy; expansion and growth of Reece's business and
operations and other such matters. Such forward-looking statements are subject
to important risks and uncertainties, which are difficult to predict and that
may affect Reece's operations, including, but are not limited to: the impact
of general economic conditions; industry conditions; government and regulatory
developments; oil and natural gas product supply and demand; competition; and
Reece's ability to attract and retain qualified personnel. Reece's actual
results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, or if any of them do
transpire or occur, what benefits Reece will derive therefrom. Subject to
applicable law, Reece disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
    All forward-looking statements contained in this document are expressly
qualified by this cautionary statement. Further information about the factors
affecting forward-looking statements is available in Reece's current Annual
Report which has been filed with Canadian provincial securities commissions
and is available on www.sedar.com.





For further information:

For further information: Lorne Swalm, President & C.E.O., Reece Energy
Exploration Corp., Phone: (403) 526-9700, lswalm@reeceenergy.com,
www.reeceenergy.com

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REECE ENERGY EXPLORATION CORP.

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