Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

December 03, 2007 09:20 ET

Contact Exploration Inc.: Commencement of Fracturing Program on Nova Scotia Shale Gas Project

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2007) - Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX) is pleased to announce that Triangle Petroleum Corporation ("Triangle") has reported the commencement of a completion program using a slickwater fracture stimulation procedure on the Kennetcook #1 well in the Windsor Shale Gas Project in Nova Scotia. Contact holds a 30% non-operated interest and Triangle is the operator with a 70% working interest in the Windsor Shale Block.

The method that was chosen to successfully hydraulically fracture stimulate the formations in the Windsor Shale Gas Project is a technique that is commonly used in the Barnett Shale of the Fort Worth Basin and the Fayetteville Shale of the Arkoma basin. The design was engineered by Triangle's completions team with support from key industry advisers who are experienced in shale completions in other basins. The team designed the stimulation after receiving preliminary data from core analysis. In addition to core analysis, testing was also done on the core to determine total organic content, mineralogy, porosity, gas content and mechanical rock properties. This data and well logs were used to design a large two zone hydraulic fracture stimulation of the reservoir. A key to the design of the treatment was the determination of the fracturing fluid compatibility to the reservoir rock and in-situ fluids.

As a result of the analysis, slickwater was chosen as the base fluid for the treatment, and both massive stages were successfully executed. The first stage used 3,130 cubic metres of water and 255,000 kilograms of sand, with the second stage using 2,450 cubic metres of water carrying 183,000 kilograms of sand. Post fracture operations on Kennetcook #1 commence with flowback of the fluids which is expected to take several weeks at a minimum. Once flowback is complete, Triangle anticipates commencing a 30 day gas flow test, reporting those results after analysis at the end of the test period.

Triangle intends to move the fracturing equipment and associated services to the Kennetcook #2 well, the second exploration test well on the Windsor Shale Block, in the next week. Results of the successful fracturing procedure on the Kennetcook #1 will be used in the design of the treatment method for the second well. According to Triangle, preparations are being made for a 2008 Horizontal drilling program targeting what is considered a major unconventional gas resource opportunity.

Contact is encouraged by the success of the record breaking stimulation treatment on the Kennetcook #1 and is looking forward to future work on the shale resource in Nova Scotia. The farm-out of the Windsor block to Triangle was announced by Contact on June 11, 2007. By moving to a non-operated working interest in the Windsor block, Contact is able to still participate significantly in the area with a company whose expertise is shale gas exploration, while allocating operational resources to the Stoney Creek field production and South Stoney Creek exploration activities. Additionally, Triangle has the option to earn a 70% operated working interest in Contact's 68,000 acre shale gas horizon in New Brunswick.

About Contact

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration & production. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North America with pipeline and refinery infrastructure in place.

Contact has onshore interests in approximately 700,000 acres in Nova Scotia, approximately 160,000 acres in west Newfoundland and 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 6.5 bcf of natural gas. In addition to the Atlantic Canadian properties, Contact has producing oil assets in south eastern Saskatchewan.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks detailed from time to time in Contact's Annual Information Form and Management's Discussion and Analysis, both of which may be found at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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