Aspen Makes Discovery at West Grimes Field

Aspen Exploration announced an additional gas discovery in the Sacramento Valley gas province of northern California.

The WGU #15-9, located in the West Grimes Gas Field, Colusa County, California, was directionally drilled to a depth of 8,235 feet and encountered potential gas pay in various intervals in the Forbes formation. One of these intervals was perforated and tested at a stabilized rate of 1,145 MCFPD on a 10/64 inch choke with a flowing tubing pressure of 2,000 psig. The shut in tubing pressure was 3,740 psig.

Aspen has drilled ten successful gas wells out of ten attempts in 2004 for a 100% success rate. "We believe that our strategy of focusing on low-risk exploration activities has contributed to our success," said Robert A. Cohan, Aspen Exploration Corporation's Chief Executive Officer. "Aspen's increased cash flow coupled with the present inventory of prime drilling acreage provides a sound basis for Aspen's continued growth as a profitable and successful energy producer."

The first 4 wells drilled in the West Grimes Gas Field were successful and are currently producing. One of these wells tested at a prolific stabilized rate of 4,845 MCFPD of gas with a flowing tubing pressure of 3,350 psig. This well was recently put on line at 3,000 MCFPD with a flowing tubing pressure of 3,400 psig. 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 additional 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.

During the last 4 years, Aspen participated in the drilling of 24 operated wells, 21 of which were completed as gas wells, and 3 dry holes which were plugged and abandoned, a success rate of 87.5%. Aspen currently operates 49 gas wells and has non-operated interests in 15 additional wells in the Sacramento Valley of northern California. Current spot gas prices are in excess of $6.00 per MMBtu. Aspen has also entered into fixed contracts for a portion (approximately 33%) of its gas, at fixed prices ranging from $6.90 to $8.75 per MMBtu for the five month period from November 2004 through March 2005.