Aspen Completes First Phase of 2003 Drilling Program

Aspen Exploration has successfully completed 3 out of 4 natural gas wells during the first phase of its 2003 drilling program in California.

The Pope Bypass #1-5 well located in Yolo County, California, approximately 50 miles southwest of Sacramento, 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 (top of a 6 foot sand) 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. Gas sales commenced on June 20th.

Aspen drilled three wells on its 2,700 acre Sour Grass prospect located in Tehama County, California. Two of these wells were completed and each tested at approximately 1,000 MCFPD of natural gas. The third well had a small amount of gas pay and was plugged and abandoned. The first well completed commenced gas sales on June 10th and the second well should go on line in July. Aspen has now drilled 4 gas wells out of 5 attempts on this prospect and has additional locations to drill. Aspen has a 23.33% working interest in this project.

Aspen and partners have recently completed a 12½ square mile 3-D seismic survey over leased acreage in Sutter County, California. This data is currently being processed and will be interpreted over the next few months. It is hopeful that analysis of the data will yield several exciting shallow gas targets (2,500 feet) which will be drilled commencing in the late fall of 2003. Aspen is striving to continue the drilling success it has experienced during the last 2½ years; 12 gas wells out of 13 attempts.

The current spot price for high BTU gas in California is approximately $5.50 per MCF and forecasts by industry analysts are for continued relatively high prices. Aspen's gas sales are not hedged. Aspen is now the operator of 34 gas wells, in addition to owning non-operating interests in an additional 16 gas wells.

Aspen's increased cash flow coupled with the present inventory of prime drilling acreage provides a sound basis for Aspen's continued growth as a profitable and successful energy producer. Future news releases will keep shareholders informed of Aspen's continuing progress and drilling activity.