Reece Energy Exploration Corp. declares 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.

Tags: Reece Energy Exploration Corp.