Aspen Exploration Discovers Ninth Gas Well in 2006

Aspen Exploration

Aspen Exploration has made its ninth new gas discovery in the Sacramento Valley gas province of northern California.

The Alston #23-2 well, located in the Rice Creek Gas Field, Tehama County, California, was drilled to a depth of 5,700 feet and encountered approximately 50 feet of potential gross gas pay in several intervals in the Forbes formation. Production casing was run based on favorable mud log and electric log responses. This was the ninth successful gas well out of ten attempts by Aspen in this field. Aspen has a 38.75% operated working interest in this well.

Aspen also recently drilled and plugged and abandoned a deep well in Kern County, California after encountering excessive borehole problems. The target objective was never reached.

Aspen entered into a gas sales contract for approximately 20% of its operated production, at a fixed gross PG&E Citygate price of $10.15 per MMBTU, for the five month period from November 2006 through March 2007.

Aspen drilled nine successful gas wells out of eleven attempts thus far in 2006, and nine gas wells out of ten attempts in 2005. During the last 6 years, Aspen has participated in the drilling of 45 operated wells, 38 of which were completed as gas wells, and 7 dry holes, a success rate of 84%. Aspen currently operates 55 gas wells and has non-operated interests in 20 additional wells in the Sacramento Valley of northern California.