MEDICINE HAT, AB, Feb. 15 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to provide the following operations update on
its fourth quarter, 2007 drilling program as a follow up to its press release
dated November 14, 2007. During the quarter, Reece and its partners drilled 16
(9.2 net) wells. Of these wells, 13 (6.7 net) are on production, 2 (2 net) are
undergoing further evaluation and one (0.5 net) is planned either for
abandonment or conversion to disposal.
With its successful horizontal oil well into the Viking sand in the
Dodsland area, Reece was the first company to utilize modern horizontal
drilling and fracturing techniques into the Viking formation in the Kindersley
area. This well was drilled in a similar fashion to the horizontal wells
currently being drilled into the Bakken formation in south-eastern
Saskatchewan. The well was completed and put on production in early January
and is currently producing at a rate of approximately 70 bbl/d of 36 degrees
API light oil.
Reece will be following the success of this well with 2 (net 2)
additional development horizontal wells on its existing land before the end of
the second quarter. Depending on the success of these wells, Reece anticipates
further drilling in the area before the end of 2008. Reece has room to drill
an additional 11 (11 net) follow-up horizontal development wells on its
existing land in the area.
Reece drilled 3 (3 net) gas wells in the Greenan area. The first well
drilled showed very positive initial test rates, and has since been tied in
and brought on production. The well is now producing steadily at 300 Mcf/d (50
BOE/d). The other two wells encountered higher than expected water cuts and
are awaiting further evaluation.
Reece drilled a step-out well from its best producing gas well in the
Brock field. The Viking formation was encountered structurally lower than
expected and Reece does not anticipate this well being put on production.
Reece drilled 9 (4.5 net) infill gas wells in the North Dodsland field.
All of these wells were successful and have since been tied in and put on
production. These wells were part of an on-going reduced spacing project in
the North Dodsland field. The success of these wells has added approximately
500 Mcf/d (83 BOE/d) net production to Reece.
As part of its annual compensation and retention program, Reece has
granted and reserved for issuance, pursuant to its stock option plan, a total
of 590,000 options to certain directors, officers, consultants and employees.
All of the options will vest in one year except for those options granted to
the directors, which will vest immediately. All of the options will entitle
the holder to acquire common shares of Reece at $0.90 per share for a period
of 3 years.
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
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 the 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, firstname.lastname@example.org,