Reece Energy announces first quarter results

    MEDICINE HAT, AB, June 3 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece" or the "Company") announces that it has released its
first quarter 2008 results and management's discussion and analysis. These
documents can be viewed on the SEDAR web site at as well as on
Reece's corporate web site at In addition, Reece would
like to announce the following highlights from the first quarter.
    Building upon its success from 2007, Reece continued to position itself
for increased growth throughout 2008. During the first quarter of 2008, Reece
(together with its joint venture partner) expanded its Bakken prospective
lands in south east Saskatchewan to more than 50 sections (25 sections net to
Reece) through the acquisition of both freehold and Crown lands. Drilling of
the first exploratory Bakken well has been completed and testing is currently
under way. Additionally, drilling of Reece's second exploratory Bakken well is
expected to start soon. Drilling and test results will be released as soon as
they are available.
    Reece and its joint venture partners will drill at least 3 (net 1.5) test
wells in their Bakken play this year. Depending upon the success of these
wells, Reece plans to drill an additional seven 7 (3.5 net) wells in the play
by the end of the year. With success in all of the wells, Reece will have an
inventory of up to 200 (100 net) further locations in the area. Reece's intent
is to continue to acquire land in its core Bakken area.
    Based upon the success of its first Viking horizontal, multi-staged,
fractured well in the Dodsland field, Reece drilled a follow up development
well in Q1 of 2008 with similar success. Subsequently, Reece has drilled an
additional 5 wells bringing the total to 7 Viking horizontal wells in this
play. The new wells are in various stages of completion testing or are on
production. Reece's 2008 capital plans called for a total of 6 (net 6) wells
to be drilled in this play. Because of Reece's increased cash-flow and
availability and its success rates, the Company's target was realized months
earlier than anticipated. All successful wells will be tied into Reece's 100%
owned and operated light oil battery located nearby. Reece's 2008 capital
budget has recently been increased and the Company is now planning to drill up
to 20 (20 net) additional wells in this field.
    In order to expedite planned capital expenditures, Reece completed a
$7.5 million dollar private placement financing in April. On the strength of
Reece's third-party engineering report dated December 31, 2007, the Company
had its credit facility increased from $13 million to $20 million.

    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.

    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

For further information:

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

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