Reece has provided the following operations update through the end of the fourth quarter of 2008.

During the last quarter of 2008 Reece and its partners drilled 33 (18.37 net) wells which brings the total for the year up to 62 (42.2 net) wells drilled. All of the wells drilled in the 2008 fourth quarter have been cased and are either on production or in various stages of testing or completion.

Reece's average production increased to 1,880 BOE/d, which equates to an increase of 998 BOE/d or 113.2% over the 2007 fourth quarter. Year end exit production was affected by extremely cold weather which persisted through the first two weeks of January, 2009. Since that time, milder weather, workovers and new well start-ups all combined to push Reece's current production above 2,100 BOE/d. Additional production will be realized over the coming weeks as the solution gas from the Dodsland area is tied in and new well start ups are completed.

In addition to the drilling activity described above, Reece acquired more land in its Lower Shaunavon play in south western Saskatchewan. Reece also purchased a flow-line and upgraded facilities to process and market solution gas from the 8-34 Dodsland Viking light oil battery. During the quarter Reece also acquired additional land and a battery in conjunction with its Bemersyde Bakken light oil play.

Tags: Reece Energy Exploration Corp.