Aspen Updates Daly Field Drilling Program

Aspen Group Resources Corp.

Aspen Group Resources Corp. said Monday that six horizontal wells have been drilled and cased since April 2006 on the company's acreage in the Daly Field in Manitoba as part of a phased development program. Wells 1 through 5 were drilled in an eastern section of Aspen's acreage to further define the geological characteristics of the Upper Lodgepole, Middle Daly, and Bakken zones. The sixth well was drilled in the southern area of Aspen's acreage and targeted the Middle Daly zone. Completion and production testing of the six wells is ongoing.

Aspen has moved the contracted drilling equipment to drill a seventh well--the tenth well drilled overall by Aspen since inception of the Manitoba drilling program. This well is planned as a vertical water disposal well and is to be drilled from the same pad as the first two wells that were drilled in the program. Once this well is completed, the drilling rig will be released to another operator for two months.

After the scheduled break in drilling, Aspen plans to continue its drilling program on the acquired acreage. Two of the first three wells drilled last October in the first phase of drilling are oil-productive. They are currently constrained due to the mechanical limitations of disposing large volumes of water. Once the water disposal well is operable, these two wells will be placed on production with much higher rates of oil volumes anticipated and lower water handling and operating costs.

The most recent wells, drilled since April 2006, were drilled higher structurally with encouraging results. All of the wells drilled established the presence of oil. However, due to the lower permeability in this portion of the field, an acid stimulation program is being implemented to maximize well productivities. To date, two wells have been stimulated with acid. One well responded successfully to the acid treatment and the other well showed minimal response to acidization. Acid treatment is now planned for three more of the additional wells drilled since April 2006. Results will be released after treating and testing of the wells is completed.

The two-month break in drilling will provide Aspen additional time to continue the acid treatment program and establish a production profile for the area. It will also allow the participants to identify the best targets for future drilling and to optimize the development of the company's lands. Aspen has more than 3,000 acres in the Daly Field that present significant opportunities to utilize horizontal drilling to find and produce oil from a proven reservoir.

Aspen Group Resources Corp. is an independent oil and natural gas producer engaged in the acquisition, exploration, production, and development of oil and natural gas properties in North America

Company: Aspen Group Resources more info
 - Aspen Completes $3 Million Financing (Jul 09)
 - Aspen Acquires Daly Field Assets (Feb 12)
 - Aspen Group Closes Private Placement (Dec 04)