Contact Begins Completion of First New Bruswick Well

Contact Exploration reports that completion operations have commenced on the Contact MBA Gautreau F-59-2328 well which was drilled and cased to a planned depth of 564 meters in February, 2005. Completion operations, which will include perforating and testing at least 2 prospective hydrocarbon zones, are anticipated to take approximately 2 weeks.

The Contact MBA Gautreau F-59-2328 well was designed to twin a gas well that was drilled and tested in 1958. The 1958 well had oil shows and gas flow rates of approximately 700 thousand cubic feet per day from multiple zones. MBA Energy is paying 100% of the cost to drill and complete the well to earn a 50% working interest in the three-section Dover prospect.

The drilling and testing of the above well also completes the earning requirements between Contact and J.A. Seglund Inc. Under the terms of an agreement dated September 22, 2003, Contact earns a 100% interest in approximately 23,000 acres of land subject to a 3.5% nonconvertible overriding royalty.