Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

January 30, 2007 09:00 ET

Contact Exploration Inc.: Heating at Stoney Creek Commences

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2007) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce that it has commenced heating operations for horizontal wells number I-88 & A-89, both located at its 100% working interest Stoney Creek field located near Moncton, New Brunswick.

The final requirement to commence production at the Stoney Creek Field is the receipt of our Environmental Impact Assessment Approval which is expected to be in place within the next two to three weeks. This will allow time for the heating system to provide initial heat prior to commencing production.

"Putting on oil production in a province that has not produced oil in commercial quantities for over thirty years was a learning experience for Contact. Contact feels that the challenges are more than offset by the provincial government's eagerness to work with Contact, the hydrocarbon potential and the favourable royalty system which is more attractive than in other provinces in Western Canada. In addition, Contact has worked closely with the local communities to maximize employment benefits through construction and all phases of our exploration and development," states Terry Brown, President and CEO of Contact.

Over the past 18 months, Contact has acquired, completed in-depth seismic and subsequently applied current technology to one of the oldest producing oilfields in North America. Wells number I-88 & A-89 mark the first application of horizontal drilling technology at Stoney Creek. At a depth of 2,500 feet, the Stoney Creek Field is of excellent quality, oil API 37 degrees (light sweet), and average net pay is 40ft. Historically, paraffin content of the oil would cause "clogging" of the well as the oil cooled in its approach to surface. Contact will be using "heat strings" to allow the oil to maintain its reservoir temperature thereby minimizing paraffin build-up and further enhancing flow rates.

The Stoney Creek Oil Field produced over 800,000 barrels of oil with the last oil wells being shut in 1974. Less than 5% of the oil in place has been recovered to date. Contact looks to exploit incremental oil and gas with the use of current drilling and production technology on the Stoney Creek Field and adjacent Stoney Creek look-alike prospects which we anticipate drilling in 2007.

For pictures of site development please visit www.contactexp.com.

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 including its 25% working interest in the developing Coal Bed Methane play at Cumberland, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore New Brunswick which includes the Stoney Creek Field.

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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