Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

October 22, 2007 09:20 ET

Contact Exploration Inc.: Commencement of Stoney Creek Workover Program

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2007) -

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Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX), as previously disclosed, is pleased to announce the commencement of our 14 well workover program in the Stoney Creek Field. The service rig has commenced operations on the 14 existing candidate wells in the 100% working interest Stoney Creek Field.

The workover program will include re-entering up to 14 wells with a service rig and swab testing for oil inflow. Swabbing is a process by which liquids are lifted from the wellbore using a rubber cupped seal mechanism. The purpose of swabbing is to remove liquids from the wellbore as well as initiate inflow from the reservoir. If necessary, fill or debris that has accumulated in the wellbore will also need to be cleaned out by the service rig. The workover program will also include logging of the wells for petrophysical analysis and perforating any uphole zones which may contain bypassed gas pay. The entire workover process in Stoney Creek is expected to take approximately 2-3 months to complete.

Most of the 14 candidate wells were drilled and completed in the early development of the Stoney Creek Field, using technology that is at least 50 years old. As a result, there are typically no wireline logs of the wellbores and very minimal geological data. Our intention in the workover program is to evaluate the candidate wells, prepare the wellbores for production if there is evidence of inflow, further exploit the reservoir by perforating non-produced zones if identified, and install pumping facilities for permanent production on the successful wells.

The Stoney Creek Field contains an estimated proved and probable reserves of 1,207,000 barrels of oil and 6.525 billion cubic feet of natural gas. As stated in the June 29, 2007 Reserve Report by Martin & Brusset Associates in adherence with National Instrument 51-101 of the Canadian Securities Administrators, these ultimate estimated reserves, when discounted at 10%, give a net present value for the Stoney Creek Field of $31,242,000. This estimate is based on a constant pricing model with a $70.23/bbl oil price and a $7.15/mmbtu natural gas price. Additional information and details on the reserve report for the Stoney Creek Field can be found in Contact's year end data filed on SEDAR on July 30, 2007.

About Contact

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

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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