Reece Energy Exploration Corp. announces land acquisitions and its 2008 capital budget

    MEDICINE HAT, AB, Feb. 5 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to announce the acquisition of land in the
southeastern Saskatchewan "Bakken formation" area, as well as its 2008 capital
expenditure plans.
    During the past several months, Reece has acquired over 15 sections of
land (net) in southeastern Saskatchewan adding to the Reece's asset position
in that part of Saskatchewan. Management believes the acquisitions to be very
prospective for the exploration and development of light oil play in the
Bakken formation. Reece is planning to spend more than half of its 2008
capital budget on this play.
    "We expect to drill five to ten net Bakken wells this year, assuming
reasonable success and reasonably stable oil prices; and in doing so Reece
should realize a substantial increase in its light oil production," says
Reece's President and CEO, Lorne Swalm. Reece's management anticipates that
its increased focus on oil in the south east and west central areas of
Saskatchewan will result in Reece's oil/gas production ratio shifting to more
than 50% oil by the end of 2008.
    Reece's Board of Directors approved a 2008 capital budget of up to
$21 million. The budget will be monitored and tailored on a quarterly basis as
success and market conditions may dictate. Reece anticipates that it will
utilize its cash flow and debt facility to finance the capital expenditure
program. Reece is prepared to consider acceleration of the Bakken drilling
program, upon the achievement of certain benchmarks in early drilling.

    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 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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