MEDICINE HAT, AB, Nov. 14 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to announce that further to its press release
dated October 29, 2007, it has completed drilling the first part of its fourth
quarter drilling program, which consisted of 13 (8 net) gas wells, on
November 4, 2007. Utilizing a two-rig system Reece was able to drill all 13
wells quickly and at very low cost. The main-hole drilling part of the program
was completed in 13 days and the field estimated average cost to drill and
case each well is $110,000 (gross).
Reece drilled three (3 net) gas wells on its property at Greenan. Third
party engineering field estimates show the extended absolute open flow test
rate, for the first well tested, to be around 50e3m3/d (295 BOE/d). "This was
the well we were holding out as having the most risk and we're pleasantly
surprised with the results," says Lorne Swalm President and C.E.O. of Reece.
Actual production for this well may vary from test rates due to compression
facility constraints. With the success of this well and the expected success
of the rest of the drilling program, Reece has the ability to meet or exceed
its year end production target of 1,300 BOE/d. The other two Greenan wells
will be evaluated over the coming weeks.
The remaining ten (5 net) wells were all cased and are being completed,
evaluated and tied in. Information concerning the remaining wells will be
released as results become available. Reece intends to have production from
all wells on stream by the end of November.
In addition Reece has commenced the oil drilling portion of its fourth
quarter capital program. At Chandler Reece's operating partner has completed
the first of two horizontal development wells in the Midale formation, and has
moved to the second well. Reece holds a 7.5% gross over-riding royalty
convertible to a 25% working interest after payout. The successful drilling of
the current well will bring the number of producing wells to nine (2.75 net)
at Chandler. Further to the drilling at Chandler Reece plans to drill or
otherwise participate in four (2.16 net) additional light oil wells in other
areas prior to the end of the fourth quarter.
Mr. Swalm adds, "The lion's share of our 2008 capital budget will be
spent on developing our multiple light oil drilling opportunities in West
Central and South Eastern Saskatchewan."
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 the 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,