Reece Energy increases credit facility and provides assurance on SemCanada exposure



    MEDICINE HAT, AB, Aug. 14 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece" or the "Company") is pleased to announce that it has
received an increase to its credit facility from the Alberta Treasury Branch.
Based on the strength of the previously announced mid-year update to its 2007
reserve evaluation, Reece's credit facility has been increased from $20
million to $33 million.
    Reece experienced proved plus probable reserves growth through the first
6 months of 2008 of 1,155 MBOE, which resulted in Reece's net present value
(10% discount rate, before taxes using forecast prices) increasing from
$71.7 million to $174.0 million. A large portion of this increase comes from
Reece's Dodsland Viking oil play. Reece has drilled 12 (12 net) horizontal
wells into the Viking formation in the Dodsland field in 2008 with a 100%
success rate.
    In July, 2008 SemCanada Crude Company ("SemCanada") applied for creditor
protection in Canada under the Companies' Creditors Arrangement Act, because
of this, Reece has estimated a potential financial exposure of approximately
$500,000 ($300,000 after taxes) relating to the marketing of a portion of the
company's oil sales for the month of June and to July 22, 2008. There is no
additional exposure as Reece has been prepaid for future deliveries from July
22 through August 25, 2008 and will continue to be paid in advance for future
deliveries.
    Reece does not consider the monetary exposure material to the Company's
overall financial position and it will not impact the Company's ability to
fund its remaining 2008 capital expenditures program. As of the date of this
release, Reece has not been able to determine either when or how much of the
exposure will be ultimately collected from SemCanada.

    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

Organization Profile

REECE ENERGY EXPLORATION CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890