Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

October 01, 2007 20:27 ET

Contact Exploration Inc.: Drilling of Kennetcook #2 Well Underway and Update of Kennetcook #1 Well on Shale Gas Acreage in Windsor, Nova Scotia

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2007) - Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX) is pleased to announce that Triangle Petroleum Corporation ("Triangle"), has commenced drilling a second vertical well, the Kennetcook #2 well, on Contact's Windsor Block in Nova Scotia. In addition to the continued drilling operations, initial comments and a progress report on the evaluation of the Kennetcook #1 have been released by Triangle.

Triangle has announced that the Precision Rig #176 is continuing the shale gas drilling program at the Kennetcook #2 well. This well is the second of Triangle's two planned vertical wells in the Windsor Basin. The second well has a planned depth of approximately 1,675 metres, with a proposed coring interval of 200 metres. Triangle is the operator of the well and has earned a 70% interest in Contact's 516,000 gross acre Windsor Block by completing the Kennetcook #1 well.

As announced by Contact on September 6, 2007, the Kennetcook #1 well in the Windsor Block was drilled by Triangle. Drilling was completed on September 13, 2007 at a total depth of approximately 1,360 metres, with nearly 400 metres of core section being obtained. As a result of the log analysis and preliminary lab work, the primary zone of interest in the well was determined to be over 100 metres of thickness, with a secondary zone of an approximate thickness of 80 metres. The core is now being analyzed at Omni Labs in Houston, Texas for rock property determination. Geochemical work is being performed by Humble Labs in Houston, Texas as well as Global Geoenergy in Halifax, Nova Scotia. Gas content analysis via desorption measurements are being evaluated by Ticora in Arvada, Colorado. In addition, in depth petrophysical (log) analysis is being performed by Schlumberger, specifically utilizing their shale expertise in Calgary, Alberta and Oklahoma City, Oklahoma. An integrated log and core study is expected in November.

The above mentioned analysis of a potential shale gas resource is a proven technique utilized in other shale basins in North America, including the prolific Barnett Shale in West Texas and the Fayetteville Shale in Arkansas. In parallel with the analysis process, Triangle has also commenced active planning of a completion process to maximize exploitation of the resource. This includes the necessary regulatory approvals and the design of an appropriate hydraulic fracture stimulation procedure for the wellbores.

To further define the extent of the potential resource, Triangle is also planning a significant 3-D and 2-D seismic program in the Windsor block. Acquisition of the data will commence shortly, and interpretation of the seismic data is expected by early in 2008.

For more information and ongoing updates please refer to the Triangle Petroleum Corporation website at www.trianglepetroleum.com under the heading "recent news".

Contact announced the farm-out of the Windsor block to Triangle 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 exploitation, while allocating operational resources to the Stoney Creek field production and South Stoney Creek exploration activities. Additionally, Triangle has the option to earn a 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. 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 interests in approximately 1.5 million acres onshore Nova Scotia, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore 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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