Aspen Makes California Gas Discovery

Aspen Exploration has recently completed its Pope Bypass #1-5 well located in Yolo County, California, approximately 50 miles southwest of Sacramento. This well was drilled to a depth of 7,800 feet and encountered approximately 70 feet of potential net gas pay in several intervals of the Winters formation. The Winters sands in this area are extremely porous and permeable, and exhibit excellent electric log characteristics. One 2-foot interval was perforated and tested at a stabilized rate of 2,161 MCFPD of natural gas with a flowing tubing pressure of 2,780 psig and a flowing casing pressure of 2,800 psig. The shut in pressures were approximately 2,810 psig, indicating a very high permeability reservoir with slight pressure drawdown during the flow period. Aspen has a 27.75% working interest in this well.

Aspen is currently conducting a 12 square mile 3-D seismic survey over leased acreage in Sutter County, California. This data will be processed and interpreted over the next few months and could yield several exciting shallow gas targets (2,500 feet) which will be drilled beginning in 2004.

Aspen has just drilled and run production casing on the Quarre #30-2 well, the third well on its 3,000 acre Sour Grass prospect located in Tehama County, California. It appears there may be 60 feet of potential net gas pay in the Forbes formation based on favorable mud log and electric log characteristics. 3-D seismic data was acquired by Aspen over this acreage in 2001 and 2 successful gas wells (out of 2 attempts) were drilled here in 2002. Two additional wells will be drilled on this prospect immediately following the Quarre well.