Reese broke last year's course-record of 65 set by five other players. The 62 also set the standard as his lowest round on tour, bettering the 63 he shot in the second round of the Northeast Pennsylvania Classic, also a course record.
His two-day total of 12-under-par 130 smashed the previous 36-hole record of 135 that Richard Zokol set in 2001.
'I mean, I'm excited but there's still two more rounds,' said Reese, winner of the 1991 Lake City Classic. 'It would be easy to get caught up in this, but heck, just like last week, I shoot 63, then I shoot 71-75. I'm just trying to hit the ball solid.'
Chad Wright, the 2000 champion of this event, is alone in second place at 9-under par.
Marco Dawson (66), David Edwards (68) and Ken Green (65) share third place at minus 8.
Reese opened on the back nine Friday and collected three birdies over his first five holes.
It was on the second nine, the front at DiamondBack, where Reese moved up the leaderboard. He ran home a 17-foot birdie putt at No. 1 and made it two in a row with a 12-footer at the next.
Reese holed three 10-foot birdie putts in a row, starting at the fifth and made it four consecutive birdies with a 20-footer at the 363-yard, par-4 eighth hole.
'You need to put it in the fairways,' said Reese, who has less than two years until he reaches the Senior Tour. 'You have to place the ball on certain parts of the green. It's the kind of golf course I enjoy playing.'
Wes Short, Richard Barcelo, Kelly Gibson, Joe Ogilvie, Greg Gregory, Stiles Mitchell, Tommy Biershenk and Scott Sterling are tied for sixth at 7-under-par 135.
The 36-hole cut fell at 1-under-par 141 and 66 players made it to the weekend.
Full-field scores from the Samsung Canadian PGA Championship