Reece Energy Exploration Corp. announces 45% reserves increase

    MEDICINE HAT, AB, March 27 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece" or the "Corporation") is pleased to announce the results
of its year end reserves evaluation. This evaluation was prepared by Sproule
Associates Limited ("Sproule") as at December 31, 2006.
    Reece made significant increases to its total reserves through drilling
and downspacing projects in its core areas in west central Saskatchewan. The
Corporation has increased its undeveloped land holdings through land purchases
and joint venture partnerships. Additionally, Reece's net present value (10%
discount rate, before tax using forecast prices and costs) remained virtually
unchanged despite a large drop in gas price forecasts. All reserves
information in this release is for Reece only as of December 31, 2006. It does
not include any reserves data for Long View Resources Corporation with which
Reece has proposed an amalgamation, as previously disclosed in a press release
dated March 9, 2007.


    Reece is pleased to present the following summary of highlights from the
Sproule reserves report as at December 31, 2006.

    -   Total proved plus probable reserves increased 45.7% from 1,987 MBOE
        as at December 31, 2005 to 2,894 MBOE. Reece's proved plus probable
        reserves are 76.2% Natural Gas.
    -   Total proved reserves increased 46.7% from 1,045 MBOE to 1,534 MBOE,
        with 80.2% of Reece's proved reserves being Natural Gas.
    -   Reece's net present value of proved plus probable reserves at a 10%
        discount rate, before taxes using forecast prices is $36.4 million
        despite a reduction in the natural gas price forecast.
    -   Reserve life index of proved plus probable reserves has increased to
        almost 11 years.
    -   The Corporation's net asset value (diluted) is $35.9 million based on
        the NPV listed above.
    -   Net asset value per share is $1.92 (based on Reece's NPV before tax
        discounted at 10%).
    -   Reece has a total of 77,623 gross acres (48,282 net) of undeveloped
        land holdings.
    -   Reece drilled 31 wells (21.7 net) during 2006 with an 87.1% success

    The following information is a summary of certain sections of the Sproule
reserves report. Sproule prepared this report in accordance with National
Instrument 51-101 ("NI 51-101"). The complete report containing all
information as required under NI 51-101 will be included with the
Corporation's year end filings which will be filed on SEDAR (
and on the Corporation's web site ( Barrel of Oil
Equivalent ("BOE") amounts have been calculated using a conversion rate of
6 Mcf of natural Gas to 1 barrel of oil.

    Oil and Gas Reserves

    Throughout 2006 Reece was able to increase its total proved plus probable
reserves by 45.7% from 1,987 MBOE to 2,894 MBOE based on forecast prices and
costs. This increase represents a 681.5% replacement of the production
throughout 2006. Reece's reserves are made up of 76.2% natural gas, 23.7%
light and heavy oil and 0.1% natural gas liquids.

    Forecast Prices       Company Net - as at December 31, 2006      Dec. 31,
                        Light     Heavy   Natural
                         Oil       Oil      Gas      NGL     Total    Total
    Category           (Mbbl)    (Mbbl)   (MMcf)   (Mbbl)   (MBOE)   (MBOE)
    Proved Producing     294.0       7.3    4,637      2.0  1,080.4    759.4
    Proved Undeveloped     0.0       0.0    2,719      0.0    453.2    167.7
    Total Proved         294.0       7.3    7,356      2.0  1,533.6  1,174.7
    Total Probable       257.9     125.7    5,842      1.3  1,360.6    941.3
    Total P+P            551.8     133.0   13,198      3.3  2,894.2  1,987.0

    Net Present Value and Future Net Revenue

    The forecast prices used by Sproule in Reece's 2006 reserve report are
significantly lower than those prices used in 2005. Despite these lower
prices, the net present value of Reece's proved plus probable reserves remains
virtually unchanged when compared to 2005. This is due to the large increase
in Reece's proved plus probable reserves.

    Forecast Prices       Company Net - as at           Company Net - as at
                           December 31, 2006             December 31, 2005
                             Before Taxes                  Before Taxes
                        Discount      Discount        Discount      Discount
                        Rate 0%       Rate 10%        Rate 0%       Rate 10%
    Category              (M$)           (M$)           (M$)           (M$)
    Proved Producing     28,724         20,417         22,889         16,789
    Proved Undeveloped    8,689          3,364          4,937          3,093
    Total Proved         37,413         23,781         32,684         23,356
    Total Probable       35,484         12,601         28,610         13,086
    Total P+P            72,897         36,382         61,294         36,442

    Although Reece's proved plus probable reserves increased significantly
year over year, the net present value of those reserves (before taxes and
discounted at 10%) remained almost unchanged (decreasing by 0.2%). This is
mainly due to a reduction in the forecast natural gas prices. The following
table compares the oil and natural gas price forecasts used by Sproule as at
December 31, 2006 and December 31, 2005.

                                      Forecast Prices
                   Oil - Edm. Par Prices -           Gas - AECO Gas Prices -
    ------------  40 degrees API (CDN$/bbl)               (CND$/MMBtu)
    Year         2006       2005 % Difference    2006       2005 % Difference
    1           74.10      70.07       5.4%      7.72      11.58     (50.0%)
    2           77.62      70.99       8.5%      8.59      10.84     (26.2%)
    3           70.25      62.73      10.7%      7.74       8.95     (15.6%)
    4           65.56      57.53      12.2%      7.55       7.87      (4.2%)
    5           61.90      54.65      11.7%      7.72       7.57       1.9%

    Reserve Life Index

    According to Sproule's report, Reece's proved plus probable reserve life
index 10.8 years. This represents an increase of 2.4 years over Reece's 2005
reserves report.

    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

For further information:

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

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