Aspen Makes More California Discoveries

Aspen Exploration announced additional successful results from its drilling efforts in the West Grimes Field, Colusa County, California. Aspen has drilled 5 successful gas wells out of 5 attempts in 2004 and anticipates drilling 4 additional wells in the Sacramento Valley gas province of northern California this year.

The WGU #15-8, located in the West Grimes Field, Colusa County, California, was directionally drilled to a depth of 7,750 feet and encountered approximately 60 feet of potential net gas pay in the Forbes Formation. This well was perforated and flow tested from two zones at a combined prolific gas rate of 3,264 MCFPD. The main zone in this well tested 2,580 MCFPD with a flowing tubing pressure of 3,180 psig on a 12/64" choke. The shut in tubing pressure was 3,700 psig. This zone appears to be capable of flowing at higher gas rates.

The WGU #16-3 was drilled to a depth of 7,950 feet and encountered approximately 55 feet of potential net gas pay in the Forbes Formation. Production casing was run based on very promising mud log and electric log responses. The well will be perforated and tested in July 2004.

These wells were drilled based on a recently acquired 10.5 square mile 3-D seismic program located over Aspen's 5,000 plus leased acres in this field. Ten to fifteen excellent drilling prospects have been identified. The wells in this field produce from multiple Forbes intervals ranging in depth from 6,000 feet to 8,500 feet and have produced over 79 BCF of gas to date. Numerous wells in this immediate area have produced at very prolific flow rates (4,000 MCFPD), have yielded excellent per well reserves (3 to 4 BCF per well), and have long productive well lives. Several of the 10 producing wells that Aspen acquired in this field last year (see prior news releases) have been producing for 40 years. Aspen believes that several of these wells may have additional gas potential in behind-pipe zones, which have not yet been perforated. Aspen has a 21% operated working interest in this field. Aspen plans to drill a minimum of two more wells in the West Grimes Field this year. The Morris #12-2 will be drilled in August 2004 and the WGU #15-9 in the fall of 2004.

During the last 3 1/2 years, Aspen participated in the drilling of 20 operated wells, 17 of which were completed as gas wells and 3 dry holes which were plugged and abandoned, a success rate of 85%. Aspen currently operates 43 gas wells and has non-operated interests in 16 additional wells in the Sacramento Valley of northern California.

Aspen's increased cash flow coupled with the present inventory of prime drilling acreage provide a sound basis for Aspen's continued growth as a profitable and successful energy producer. Future news releases will keep shareholders informed of Aspen's continuing progress and drilling activity. Because of gas discoveries and acquisitions made during the previous twelve months and favorable gas prices currently in excess of $5.75 per MMBTU, Aspen expects positive earnings for the current fiscal year.