SOURCE: Aspen Exploration Corporation

July 27, 2006 15:28 ET

Aspen Exploration Prepares to Drill Underbalanced Gas Well

West Grimes Gas Field, Sacramento Valley, Northern California

DENVER, CO -- (MARKET WIRE) -- July 27, 2006 -- Aspen Exploration Corporation (OTCBB: ASPN), with offices in Bakersfield, California, and Denver, Colorado, announced today it is nearing completion of the first phase of operations in preparation to drill an underbalanced gas well in the West Grimes Gas Field, Colusa County, California.

The WGU #15-12 well was conventionally drilled to a depth of 6,070 feet. Production casing will be run, the drilling rig will be released, and then a completion rig will move in and drill approximately 100 feet deeper with an underbalanced system in an attempt to find gas pay in the Forbes formation. Aspen hopes to encounter this gas target 50 feet updip from a correlative prolific Forbes zone that produces in an existing Aspen well, located 1,000 feet to the southeast. This underbalanced drilling technique has had excellent results on a recent Forbes gas well Aspen drilled in this field. Aspen has a 5,000 plus acre lease position and a 21% operated working interest in this field.

Aspen drilled seven successful gas wells out of eight attempts thus far in 2006, and nine gas wells out of ten attempts in 2005. During the last 5 1/2 years, Aspen has participated in the drilling of 43 operated wells, 37of which were completed as gas wells, and 6 dry holes, a success rate of 86%. Aspen currently operates 54 gas wells and has non-operated interests in 20 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.OB. 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