Aspen Exploration Reports Strong First Quarter Results

Aspen Exploration reports results for its first fiscal quarter ended September 30, 2005. For the quarter, the Company reported revenues of $1,194,000, an increase of 52% as compared to the year-earlier period revenues of $784,000, and net income of $461,000 compared to $222,000 a year earlier, an increase of 108%. This resulted in diluted earnings per share of $0.06 for the quarter as compared to the year-earlier period of $0.04 per share.

The Company reported higher revenues as a result of an increase in production volumes from recent gas discoveries and higher prevailing prices for natural gas. Gas production for the quarter ended September 30, 2005 averaged 1,609 MCF per day, an increase of 13% versus the same period in fiscal 2005. Net income before interest, depletion, depreciation and taxes increased 63% to $896,000, or $0.13 per share, compared to $549,000, or $0.09 per share for the same period in fiscal 2005.

The production from several of Aspen's newly drilled wells in addition to the positive effect on revenues of higher natural gas prices are not reflected in the current 10-Q. Based upon the increasing production levels and continued strong gas prices, Aspen expects continued strong earnings for the current fiscal year.