Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

November 24, 2008 09:20 ET

Contact Exploration Inc.: Development Well Drilling Commences in Stoney Creek Field

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2008) - Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX) announces the drilling of a development well in their producing Stoney Creek Field, New Brunswick. The Stoney Creek N-78-2328, which has commenced drilling, will be drilled to a projected depth of 1115 metres and hydraulically fractured to exploit oil production from the existing Stoney Creek Field.

Approval was received on November 14th, 2008 from the New Brunswick Department of Natural Resources to drill Contact Stoney Creek N-78-2328. This vertical well, once drilled, will have a suite of modern wireline logs over the entire interval as well as selected core samples taken from the zone of interest. The acquisition of modern data from the Stoney Creek Field via this wellbore will enable Contact to further verify the reservoir properties of the field. The Stoney Creek N-78-2328 location was chosen in a high pressure section of the field offsetting some of the most productive wells in Stoney Creek. Upon completion of the well, a stimulation treatment using hydraulic fracturing is planned.

As a result of a recent study conducted by the University of New Brunswick, it has been determined that a hydraulic fracture treatment is the most efficient method of exploiting the reserves in the Stoney Creek Field. Drilling this development well and performing a fracturing treatment should enable Contact to optimize future development and infill drilling in the field to maximize production from the reservoir. If this method proves to be more efficient for enhanced production of the oil reservoir, the same method can be utilized for the production of gas from the gas bearing zones in Stoney Creek. The depth of the well will allow penetration through the existing reservoirs and investigation of any conventional or unconventional potential beneath the currently defined targets.

"We have been producing oil from the Stoney Creek field for over a year, and have a better understanding of the reservoir's behaviour through production" stated Darcy Spady, President and CEO. "Using production data, combined with the excellent research conducted at the University of New Brunswick by Dr. Laura Romero-Zeron and Mr. Mark Bacon, Master of Science Candidate, we can better understand how to effectively deal with this unique hydrocarbon deposit and optimize our recovery techniques."

About Contact Exploration Inc.

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore conventional exploration, shale gas exploration & oil production. Contact's holdings and operations are located in close proximity to one of the world's largest consumption markets, near strong pipeline and refining infrastructure and in mature jurisdictions with reasonable royalty structures in place.

Contact's philosophy is to operate production and exploration in our core area of Atlantic Canada, and to participate in unconventional shale gas exploration, such as the Windsor Shale Block in Nova Scotia and the Beech Hill Shale Prospect in New Brunswick (both of which prospects were generated by Contact).

Contact has onshore interests in approximately 700,000 acres in Nova Scotia, approximately 70,000 acres in west Newfoundland and 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5,500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 7.2 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.

Contact Information