Reece Energy achieves record profit and cash flow for second consecutive quarter

    MEDICINE HAT, AB, Nov. 28 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to provide the results for the third quarter
of 2008. Some of the more salient year over year highlights include:

    <<
    -   increased revenues by 288%;
    -   increased cash flow from operations by 762%;
    -   average production for the quarter increased by 80.3%;
    -   completed a private placement financing for $12 million;
    -   increased Reece's credit facility by $13 million to $33 million;
    -   drilled 10 (10.0 net) extended reach, multi-stage fractured,
        horizontal oil wells in the Dodsland field with a 100% success rate;
    -   acquired more land in the Dodsland field on which to drill further
        horizontal wells;
    -   drilled two (1.0 net) horizontal wells on Reece's Bakken land; and
    -   entered into a joint venture agreement to gain access to the Lower
        Shaunavon play in south west Saskatchewan.
    >>

    The rapid growth that Reece has seen during the first half of the year
has continued through the third quarter primarily due to the continued success
in the Viking play. Reece drilled a total of 14 (11.7 net) wells during the
quarter, with a 100% success rate.
    As a result of the new drilling, Reece's average production for the
quarter increased by 657 BOE/d or 80.3% over the same period of 2007 and 509
BOE/d (50%) over the second quarter of 2008. Due to the increased production
and high commodity prices, Reece's cash flow and revenues have increased
significantly for the second consecutive quarter. Cash flow from operations in
the third quarter of 2008 was up by 762% year over year, reaching a total of
$9,324,608 million. In turn, revenues increased by $10,201,773 million or by
288% when compared to the third quarter of 2007.
    In order to expedite planned capital expenditures, Reece completed its
second private placement financing for the year in August, raising $12
million. Based on the strength of Reece's third-party engineering report dated
June 30, 2008, Reece had its credit facility increased by $13 million to $33
million.
    The Dodsland Viking light oil play near Kindersley, Saskatchewan saw the
majority of Reece's activity and expenditures again in the third quarter of
2008. Ten (10.0 net) horizontal, multi-staged fractured wells were drilled
during the quarter. As of the end of September, seven of these wells were on
production and have added over 500 bbl/d of light oil net to Reece. Drilling,
completions and tie-ins are continuing in this core area with the wells being
tied into a 100% owned and operated facility in the field.
    Progress in Reece's exploratory Bakken play has continued as planned with
two (1.0 net) wells drilled during the quarter. The final exploratory well was
drilled in Reece's Montmartre play and is undergoing testing. Reece's first
delineation well was drilled in the Bemersyde area (near Reece's first
successful Bakken exploratory well) and initial test results are positive. A
further 1,920 acres (net 960 acres) of land was acquired in a land sale that
occurred on October 6, 2008 (the "Land Sale") which further enhanced Reece's
position at Bemersyde. Reece has a total of 7,680 acres (net 3,840) of land in
the Bemersyde play. After all testing and fracturing is complete and
production has been established for the existing wells, additional delineation
wells are planned to establish the pool extent.
    Two (0.66 net) wells were successfully drilled in the Souris Valley play
at Crystal Hill in south east Saskatchewan. One of these wells has been tied
in and is currently producing while the other is awaiting completion. Further
drilling to develop this field will be on going in conjunction with Reece's
partners in the area.
    In August, Reece entered into a joint venture with Anterra Energy Inc.
("Anterra") to explore and develop the Lower Shaunavon formation on 1,760
acres of Anterra land in south west Saskatchewan. Drilling of the first well
was completed in October. This well has now been fractured and is currently
being tested. The well has been recovering fracture fluid and has now started
to produce some oil. Based on successful analogous wells in the area, Reece
expects the well to gain in oil volume per day as the remainder of the
fracture fluid is recovered. At the Land Sale Reece was successful in
acquiring 12 sections jointly with Anterra (50%/50%), and an additional 23
sections of land (100%) for a total of 22,400 (18,600 net) acres of
exploratory land in the area. Reece plans to undertake a more aggressive
program on these lands in 2009.
    At its Board of Directors meeting on November 26, 2008, Reece's Board of
Directors approved a capital budget for 2009 of $30 million based on current
commodity prices. The budget for the first quarter has been set at $7.5 to $10
million. The 2009 budget will be reviewed quarterly and adjusted according to
commodity prices.

    Reece is a publicly held oil and gas company headquartered in Medicine
Hat, Alb
Reece Energy achieves record profit and cash flow for second consecutive quarter 
    MEDICINE HAT, AB, Nov. 28 /CNW/ - Reece Energy Exploration Corp.
(TSX-V/RXR) ("Reece") is pleased to provide the results for the third quarter
of 2008. Some of the more salient year over year highlights include:

    <<
    -   increased revenues by 288%;
    -   increased cash flow from operations by 762%;
    -   average production for the quarter increased by 80.3%;
    -   completed a private placement financing for $12 million;
    -   increased Reece's credit facility by $13 million to $33 million;
    -   drilled 10 (10.0 net) extended reach, multi-stage fractured,
        horizontal oil wells in the Dodsland field with a 100% success rate;
    -   acquired more land in the Dodsland field on which to drill further
        horizontal wells;
    -   drilled two (1.0 net) horizontal wells on Reece's Bakken land; and
    -   entered into a joint venture agreement to gain access to the Lower
        Shaunavon play in south west Saskatchewan.
    >>

    The rapid growth that Reece has seen during the first half of the year
has continued through the third quarter primarily due to the continued success
in the Viking play. Reece drilled a total of 14 (11.7 net) wells during the
quarter, with a 100% success rate.
    As a result of the new drilling, Reece's average production for the
quarter increased by 657 BOE/d or 80.3% over the same period of 2007 and 509
BOE/d (50%) over the second quarter of 2008. Due to the increased production
and high commodity prices, Reece's cash flow and revenues have increased
significantly for the second consecutive quarter. Cash flow from operations in
the third quarter of 2008 was up by 762% year over year, reaching a total of
$9,324,608 million. In turn, revenues increased by $10,201,773 million or by
288% when compared to the third quarter of 2007.
    In order to expedite planned capital expenditures, Reece completed its
second private placement financing for the year in August, raising $12
million. Based on the strength of Reece's third-party engineering report dated
June 30, 2008, Reece had its credit facility increased by $13 million to $33
million.
    The Dodsland Viking light oil play near Kindersley, Saskatchewan saw the
majority of Reece's activity and expenditures again in the third quarter of
2008. Ten (10.0 net) horizontal, multi-staged fractured wells were drilled
during the quarter. As of the end of September, seven of these wells were on
production and have added over 500 bbl/d of light oil net to Reece. Drilling,
completions and tie-ins are continuing in this core area with the wells being
tied into a 100% owned and operated facility in the field.
    Progress in Reece's exploratory Bakken play has continued as planned with
two (1.0 net) wells drilled during the quarter. The final exploratory well was
drilled in Reece's Montmartre play and is undergoing testing. Reece's first
delineation well was drilled in the Bemersyde area (near Reece's first
successful Bakken exploratory well) and initial test results are positive. A
further 1,920 acres (net 960 acres) of land was acquired in a land sale that
occurred on October 6, 2008 (the "Land Sale") which further enhanced Reece's
position at Bemersyde. Reece has a total of 7,680 acres (net 3,840) of land in
the Bemersyde play. After all testing and fracturing is complete and
production has been established for the existing wells, additional delineation
wells are planned to establish the pool extent.
    Two (0.66 net) wells were successfully drilled in the Souris Valley play
at Crystal Hill in south east Saskatchewan. One of these wells has been tied
in and is currently producing while the other is awaiting completion. Further
drilling to develop this field will be on going in conjunction with Reece's
partners in the area.
    In August, Reece entered into a joint venture with Anterra Energy Inc.
("Anterra") to explore and develop the Lower Shaunavon formation on 1,760
acres of Anterra land in south west Saskatchewan. Drilling of the first well
was completed in October. This well has now been fractured and is currently
being tested. The well has been recovering fracture fluid and has now started
to produce some oil. Based on successful analogous wells in the area, Reece
expects the well to gain in oil volume per day as the remainder of the
fracture fluid is recovered. At the Land Sale Reece was successful in
acquiring 12 sections jointly with Anterra (50%/50%), and an additional 23
sections of land (100%) for a total of 22,400 (18,600 net) acres of
exploratory land in the area. Reece plans to undertake a more aggressive
program on these lands in 2009.
    At its Board of Directors meeting on November 26, 2008, Reece's Board of
Directors approved a capital budget for 2009 of $30 million based on current
commodity prices. The budget for the first quarter has been set at $7.5 to $10
million. The 2009 budget will be reviewed quarterly and adjusted according to
commodity prices.

    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
"RXR".

    <<
    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.erta, Canada that trades on the TSX Venture Exchange under the symbol
"RXR".

    <<
    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.