Aspen Acquires New Gas Production

Aspen Exploration has acquired certain natural gas producing wells located in the Sacramento Valley of northern California. The acquisition consists of 4 operated gas wells and 1 non-operated gas well located in various fields in the vicinity of Aspen's existing operations. Aspen's net working interests acquired in the operated wells range from 38% to 90%. Excellent behind-pipe potential exists in one of the wells. Aspen has increased its daily production approximately 12% as a result of this new acquisition. Aspen currently operates 37 gas wells and has non-operated interests in 16 additional wells in the Sacramento Valley of northern California.

Aspen and partners have recently completed the shooting of a 10.5 square mile 3-D seismic program located over its acreage in the West Grimes Field, Colusa County, California, approximately 100 miles northeast of Sacramento. During the past year, Aspen acquired ten shut-in gas wells in this area which were tested; nine of them have proven productive and one tested gas at sub-commercial rates and was plugged and abandoned. The nine productive wells have been equipped and hooked up via 5 miles of newly constructed pipeline facilities. Gas sales from these wells commenced in late March and is currently 700 MCFPD. Several of these wells have additional gas potential in behind-pipe zones, which have not yet been perforated. Aspen has also acquired in excess of 5,000 acres in this area which includes highly prospective lands for additional exploratory and development drilling. Numerous wells in this immediate area have produced at very prolific flow rates (4,000 MCFPD) and have yielded excellent per well reserves (3 to 4 BCF per well). Quality targets will hopefully be identified via the 3-D seismic program and drilled during the 2004 drilling season.

During the last 3 years, Aspen participated in the drilling of 15 operated wells, 12 of which were completed as gas wells and 3 dry holes which were plugged and abandoned, a success rate of 80%. Exploration and development activities are continuing in the Sacramento basin. Aspen has recently acquired 6 new quality drilling prospects which are leased and defined by 3-D seismic data. These prospects will be drilled during the 2004 - 2005 drilling seasons.

Aspen has announced increased revenues and production related to oil and gas operations in California for the first quarter of fiscal 2004 ended September 30, 2003. On revenues of $388,000 and a net profit of $50,200, Aspen reported earnings of $0.01 per share based on 5.9 million shares outstanding. This compares with a loss of $0.01 per share for the previous fiscal quarter ended September 30, 2002. Gas production and gross revenues increased 10% and 49% for the first quarter of fiscal 2004. Because of gas discoveries and acquisitions made during the previous twelve months and favorable gas prices, which averaged $4.82 per MMBTU during the quarter ended September 30, 2003 and are currently approximately $6.00 per MMBTU, Aspen expects positive earnings for the current fiscal year.

Aspen's increased cash flow coupled with the present inventory of prime drilling acreage provide 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.