MEDICINE HAT, AB, Oct. 29 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to announce that it is still business as
usual for the Saskatchewan based company. "The recently announced royalty
changes in Alberta will have no effect on Reece Energy as all of Reece's
assets are located in Saskatchewan. Reece continues to develop its
Saskatchewan assets with the launch of its fourth quarter drilling program,
which started October 19, 2007" says Lorne Swalm, Reece's President & C.E.O.
With that, Reece is pleased to provide the following operations update.
Following its successful drilling throughout the first half of 2007, Reece
commenced drilling on its higher-risk third quarter drilling program in July.
Reece drilled four (3.1 net) wells during the quarter.
Adding to Reece's three heavy oil wells that are currently producing in
its North Dodsland gas field, one (0.85 net) vertical heavy oil well was
drilled during the third quarter. This well has been tied in and is producing
at approximately 10 BOE/d.
Reece drilled one (0.75 net) well at Driver, west of North Dodsland. The
well encountered oil shows in the Viking formation, and is awaiting
One (0.5 net) well was drilled at Brock to further delineate the gas
field there. This well encountered gas shows in the Viking formation as
expected, and is awaiting completion.
Reece drilled one (1 net) horizontal well on its Hastings North property.
This well encountered a highly porous and extremely permeable zone that
yielded only water. This well is scheduled for abandonment.
Reece commenced drilling the first part of its fourth quarter program on
Friday, October 19, 2007. This part of the program will consist of 13 (8 net)
wells. All of these wells are targeting natural gas around the Kindersley area
of West Central Saskatchewan. Nine (4.5 net) infill gas wells will be drilled
at Reece's North Dodsland gas field. One (0.5 net) gas well will be drilled at
Brock, and three (3 net) gas wells will be drilled at Greenan. Two (0.83 net)
oil wells are planned on Reece's land in South Eastern Saskatchewan, but
drilling won't commence on these wells until December.
The gas wells being drilled at North Dodsland are part of Reece's ongoing
pilot project to reduce the spacing in the field to 160 acres. These wells are
a follow-up to the success of the first five well pilot project drilled last
With the additional production from its third and fourth quarter
drilling, Reece expects to achieve its 2007 exit production goal of 1,250 to
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,