Aspen Starts Seismic Work and Drilling, Continues Producing in CA

Aspen Exploration Corporation has completed a 3-D seismic program in Colusa County, California, in an area Aspen geologists regard as highly prospective for natural gas reservoirs at depths from about 5,000 to 8,000 feet below the surface. The cost of the 12 square mile program, which, because of agricultural developments in the area, must be supported by helicopter, was approximately $700,000. Aspen shared the cost of this 3-D seismic program with its working interest partners in the area. Aspen expects to begin data processing in early April. Depending on results of the interpretation, we anticipate drilling possibly two to three wells in this area during the summer or fall of 2008, where Aspen has a 32% operated working interest.

Aspen plans to drill an additional five to seven gas tests in the Sacramento Valley gas province of northern California, including the counties of Colusa, Glenn, Tehama and Yolo, between April and October of 2008. Four of the anticipated wells will be drilled on leases obtained through a farmout from an industry partner and will target the Starkey and Forbes formations at depths ranging from 4100 feet to 5800 feet. Aspen has operated working interest in these areas ranging from 21% to 31%. The first well will be drilled starting in approximately two weeks. The actual timing and drilling of the other wells will be contingent on permits and drilling rig availability. As currently planned, consulting engineers will be supervising the drilling on behalf of Aspen.

Aspen continues gas production from 64 wells in California operated by Aspen and 22 wells operated by others. For February 2008 Aspen's 64 operated wells produced approximately 170,800 MMBTU. Approximately 38% of February's production received an average price of $7.97/MMBTU, and approximately 62% of February's production received an average price of $8.29/MMBTU. Currently, 2,000 MMBTU/day is hedged at $9.02 for the period November 1, 2007 through March 31, 2008.