SOURCE: Aspen Exploration Corporation

August 08, 2005 11:04 ET

Aspen Exploration Drills Third Consecutive Gas Well This Year - West Grimes Field, Colusa County, California

DENVER, CO -- (MARKET WIRE) -- August 8, 2005 -- Aspen Exploration Corporation (OTC BB: ASPN), with offices in Bakersfield, California, and Denver, Colorado, announced today an additional gas discovery in the Sacramento Valley gas province of northern California.

The Morris #12-3 well located in the West Grimes Gas Field, Colusa County, California, was drilled to a depth of 8,000 feet and encountered approximately 60 feet of potential net gas pay in various intervals in the Forbes formation. Production casing was run based on favorable mud log and electric log responses. Aspen has a 21% operated working interest in this well.

The rig will now be moving to the Strain #10-2 well, also located in this field. Following the Strain #10-2, Aspen has 2 additional wells to drill this year in this field and 3 wells to drill in other fields in the Sacramento Valley. Please refer to the news release dated July 28, 2005 for additional details on these wells and on the Malton Black Butte and West Grimes Gas Fields.

Aspen drilled ten successful gas wells out of ten attempts in 2004 for a 100% success rate, and three gas wells out of four attempted in 2005. During the previous 4½ years, Aspen participated in the drilling of 28 operated wells, 24 of which were completed as gas wells, and 4 dry holes which were plugged and abandoned, a success rate of 86%. Aspen currently operates 47 gas wells and has non-operated interests in 15 additional wells in the Sacramento Valley of northern California.

Future news releases will keep shareholders informed of Aspen's continuing progress and drilling activity. Aspen's stock is quoted on the OTC Bulletin Board under the symbol ASPN. For more information concerning Aspen, contact Bob Cohan, President and CEO, in Aspen's Bakersfield office at (661) 831-4669. Aspen's web page can be found at www.aspenexploration.com.

DISCLAIMER

This news release contains information that is "forward looking" in that it describes events and conditions which Aspen Exploration Corporation ("Aspen") reasonably expects to occur in the future. Expectations for the future performance of the business of Aspen are dependent upon a number of factors, and there can be no assurance that Aspen will achieve the results as contemplated herein and there can be no assurance that Aspen will be able to conduct its operations or production from its properties will continue as contemplated herein. Certain statements contained in this report using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks which are beyond Aspen's ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. These risks include, but are not limited to: the possibility that the described operations (including any proposed exploration or development drilling) will not be completed on economic terms, if at all, or the estimates of reserves may not be accurate. The exploration for, and development and production of, oil and gas are enterprises attendant with high risk, including the risk of fluctuating prices for oil and natural gas, imports of petroleum products from other countries, the risks of not encountering adequate resources despite expending large sums of money, and the risk that test results and reserve estimates may not be accurate, notwithstanding appropriate precautions. Many of these risks are described herein and in Aspen's annual report on Form 10-KSB, and it is important that each person reviewing this report understand the significant risks attendant to the operations of Aspen. Aspen disclaims any obligation to update any forward-looking statement made herein.

ASPEN EXPLORATION CORPORATION
2050 S. Oneida St., Ste. 208
Denver, CO  80224-2426
Telephone: (303) 639-9860
Fax: (303) 639-9863
Email: aecorp2@qwest.net
Web Site: www.aspenexploration.com

Contact Information