Aspen Group Resources Corporation

Aspen Group Resources Corporation

August 17, 2005 07:00 ET

Aspen Announces Successful Completion and Testing

CALGARY, ALBERTA--(CCNMatthews - Aug. 17, 2005) - Aspen Group Resources Corporation (TSX:ASR) -

- 16-10 well tests 332 barrels of oil per day
- Completes drilling of second well and retains rig for a third well
- Increases land position in Manitoba

Aspen Group Resources Corporation (TSX:ASR) (Aspen) today announced the successful completion and testing of the first well in the Daley Field in Manitoba. The 16 -10 well (located on the 16-10-009-28W1M lease) was drilled to measured depth of approximately 1600 meters. The horizontal leg was drilled in the Middle Daly section of the Lodgepole formation. The well was swab tested and encountered an initial production rate of 332 barrels of oil. Gas rates were minimal. The well will be temporarily shut-in pending the culmination of the immediate drilling program and the construction of the surface gathering facilities.

Drilling operations on the second well, the 10 -30 well, located on the 10 - 30 -009-28W1M lease have been completed. Completion and testing of the 10-30 well will begin later in the week. The drilling rig will be moved to the 02/16-10 -14-11-9 -28W1M lease to drill an additional well near the 16-10 well site.

The wells utilized horizontal drilling techniques to explore three potential zones: the Middle Daly Member and the Cruickshank Crinoidal Member in the Lodgepole formation and the underlying Bakken formation. Horizontal drilling has been used successfully in these type structures to enhance production and recovery rates. The well locations are within an area that has established production.

Aspen also announced that two additional leases in the Daley Field totaling 440 acres have been acquired through a Crown Land sale. With the addition of the two new leases, Aspen now holds a 50 percent interest in a total of 7 leases totaling approximately 2200 acres in the area. Consulting geologists and engineers estimate that approximately 25 additional drill targets are contained within the acreage.

Aspen owns a 50 percent working interest in each well through its Joint Venture Agreement with Westchester Resources Inc. (TSX VENTURE:WSR). Aspen is the operator on each well.

Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, production and development of oil and natural gas properties in North America. Aspen's shares trade on The Toronto Stock Exchange under the symbol "ASR".

Portions of this document include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. These statements are based on managements' current expectations and are subject to uncertainty and changes in circumstances. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Aspen's projects and other statements which are not historical facts. In addition, there can be no assurance that the flow rate estimated herein can be maintained with the testing conducted. When used in this document, and in other published information of Aspen's, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although Aspen believes that their expectations reflected in the forward-looking statements are reasonable, the potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Certain factors that can affect Aspen's ability to achieve projected results are described in Aspen's Annual Report and Form 20-F, and other reports filed by both companies with the applicable Canadian securities regulatory authorities and by Aspen with the US Securities and Exchange Commission. Factors that can affect the ability of Aspen to achieve projected results include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and developmental drilling, competition, government regulation, the ability of Aspen to implement its business strategy, the potential that projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices and other risks not anticipated by Aspen or disclosed in published material of Aspen. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

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