Reece Energy continues growth through the fourth quarter



    MEDICINE HAT, AB, Feb. 6 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to provide the following operations update
through the end of the fourth quarter of 2008.
    During the last quarter of 2008 Reece and its partners drilled 33 (18.37
net) wells which brings the total for the year up to 62 (42.2 net) wells
drilled. All of the wells drilled in the 2008 fourth quarter have been cased
and are either on production or in various stages of testing or completion.
Reece's average production increased to 1,880 BOE/d, which equates to an
increase of 998 BOE/d or 113.2% over the 2007 fourth quarter. Year end exit
production was affected by extremely cold weather which persisted through the
first two weeks of January, 2009. Since that time, milder weather, workovers
and new well start-ups all combined to push Reece's current production above
2,100 BOE/d. Additional production will be realized over the coming weeks as
the solution gas from the Dodsland area is tied in and new well start ups are
completed.
    In addition to the drilling activity described above, Reece acquired more
land in its Lower Shaunavon play in south western Saskatchewan. Reece also
purchased a flow-line and upgraded facilities to process and market solution
gas from the 8-34 Dodsland Viking light oil battery. During the quarter Reece
also acquired additional land and a battery in conjunction with its Bemersyde
Bakken light oil play.

    Viking

    In the fourth quarter, growth at Reece's Viking play in west central
Saskatchewan continued with seven (7.0 net) extended reach, multi-stage
fractured horizontal wells drilled. Three of the seven wells were on
production by the end of the year; three of the others have since been brought
on production and the last is expected to commence in the coming days. During
the quarter Reece purchased a flow-line and upgraded its Dodsland facilities
in order to market solution gas from its Viking oil wells. Reece is expecting
to process over one million cubic feet per day of solution gas through this
facility.

    North Dodsland

    During the Quarter, Reece, with its partner at its North Dodsland field
in west central Saskatchewan, drilled 16 (8 net) vertical gas wells. The wells
are in various stages of completion or production and are expected to be fully
on stream before the end of February. It is anticipated that when all wells
are fully on production they should contribute a total of over 2 million cubic
feet per day (1 million net) of sales.

    Buffalo Coulee

    Reece drilled one (1.0 net) vertical Manville gas well at its Buffalo
Coulee play in December. This well was completed and tested in early February.
It is anticipated that this well will be tied in and producing before break up
at rates of around 500 mcf per day.

    Stoughton and Forget Bakken

    During the fourth quarter of 2008, Reece participated in the drilling of
six (1.0 net) horizontal oil wells in the Bakken formation. Four (0.65 net)
wells were drilled in the Forget area with its partner Crescent Point, while
the other two (0.34 net) were drilled in the Stoughton area with its partner
Renegade.

    Bemersyde Bakken

    In conjunction with its partner at Bemersyde, Reece purchased 1,600 (800
net) acres of fee title land and an additional 320 (160 net) acres of Crown
land. This new land comes complete with an oil battery and water disposal
well. This facility will be utilized as the area is developed. This purchase
also includes shut in Red River production. The further development of the
Bakken and reactivation of the Red River wells will be pursued as time and
resources allow. Reece intends to use the newly acquired facility as a hub in
the development of the area.

    Lower Shaunavon

    Reece drilled and completed its first (0.68 net) Lower Shaunavon well at
Rapdan in south west Saskatchewan. The well is an extended reach, multi-stage
fractured horizontal well. The well has been producing at an un-optimized rate
of 40 to 60 bbls of medium gravity oil per day (net 27 to 40 bbls). At the
provincial land sale held on October 6, 2008 Reece was successful in acquiring
12 sections jointly with Anterra (50%/50%), and an additional 23 sections of
land (100%) for a total of 22,400 (18,600 net) acres of exploratory land in
the area.

    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.
    

    BOEs derived by converting gas to oil at a ratio of six thousand cubic
feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.

    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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