Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

October 31, 2007 23:02 ET

Contact Exploration Inc.: Operations Update on Nova Scotia Shale Acreage

CALGARY, ALBERTA--(Marketwire - Oct. 31, 2007) -

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Contact Exploration Inc. ("Contact"), (TSX VENTURE:CEX) is pleased to announce that Triangle Petroleum Corporation ("Triangle") has reported the completion of drilling of the Kennetcook #2 well, the second of two wells drilled in Contact's Windsor Shale Block. Triangle has also discussed future operations and plans for the prospect. Contact holds a 30% non-operated interest and Triangle is the operator with a 70% working interest in the Windsor Shale Block. In their release dated October 31, 2007, Triangle stated:

"Triangle Petroleum Corporation (the "Company" or "Triangle") (OTCBB:TPLM) is pleased to report that the Company has now drilled two exploration test wells into the Horton Bluff shale formation on its 516,000 gross acre land position in Nova Scotia, Canada. The Horton Bluff shale formation is the exploration target for an unconventional gas resource play.

Drilling and Evaluation Programs -

The following is a summary of the two wells drilled in the Company's Windsor Basin land block.

The first well, Kennetcook #1, reached a total depth of 4,390 feet and was rig released on September 15, 2007 after running casing to total depth. Kennetcook #1 is located 25 miles west of the community of Truro, Nova Scotia. This well was extensively cored over an interval of 1,150 feet. Advanced well log data was acquired on this well and the data is currently being integrated with the special core measurements performed by service companies with extensive unconventional shale gas expertise.

The second well, Kennetcook #2, reached a total depth of 6,350 feet and was rig released on October 13, 2007 after running casing to total depth. Kennetcook #2 is located approximately two miles north-west of Kennetcook #1 and was cored over an interval of 430 feet. Similar logging programs to Kennetcook #1 were performed and the integration with shale gas laboratory measurements is currently underway. Based upon preliminary log analysis, the primary shale zone in Kennetcook #2 is approximately 500 feet thick.

Management has concluded that a comprehensive hydraulic fracture stimulation ("completion") program is warranted to assess the Horton Bluff deliverability. The Kennetcook #1 well will be completed first with the results of this operation used to guide the completion planning for Kennetcook #2.

Completion Program -

A stimulation program design has moved forward based on favorable laboratory measurements of rock properties, gas content and fluid compatibility. A large, slick water fracture stimulation program is currently planned for late in the fourth quarter of 2007. Two frac water holding ponds have been constructed, each with the capacity to hold up to 2.5 million gallons of fluid. The program for the first frac single stage treatment is anticipated to be approximately 1 million gallons of slick water with 550,000 pounds of sand proppant volumes. Stimulations of this magnitude are in line with the current stimulations in the Barnett Shale of the Fort Worth Basin and the Fayetteville Shale of the Arkoma Basin.

Seismic Program -

An aggressive seismic program is being acquired: the 25 square mile 3-D program covers our initial target area over the Kennetcook wells and the 30 mile 2-D program extends to another favorable area of the land block. Shot hole drilling for both the 3-D and the 2-D programs has been completed and the data is being recorded. The acquisition and processing phase of the seismic program is expected to be finished by the end of November. Interpretation of this data is expected to occur within 60-90 days of the seismic program being completed. The first priority of the interpreted 3-D seismic program will be to select future well locations.

Gas marketing initiative -

The development of on-shore gas production in Nova Scotia is in a very early phase. Triangle is currently in discussions with various marketing groups to communicate the aggressive exploration program initiatives that are in progress for the Windsor Basin of Nova Scotia. The gas currently marketed into the northeastern U.S. markets is being sold at a premium to other North American producing areas.

Ron Hietala, President of Triangle's operating subsidiaries, comments, "The Company is in a very exciting phase for testing this Canadian shale gas project. Within six months Triangle has moved forward with contracts being signed, followed by new drilling to proprietary seismic and now on to completion activities. The ability to operate and move forward under its own timetable has contributed significantly to where the Company is today.""

Contact is encouraged by the above mentioned favorable results of the laboratory measurements of the core samples in the first two wells, and the plans to move forward with a fracture stimulation. 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 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 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. 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 approximately 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in any jurisdiction where such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

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

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