SOURCE: Aspen Exploration Corporation

October 10, 2006 13:20 ET

Aspen Exploration Successfully Drills Gas Well in Malton Black Butte Field, Tehama County, California and Successfully Tests Gas Well in West Grimes Gas Field, Colusa County, California

DENVER, CO -- (MARKET WIRE) -- October 10, 2006 -- Aspen Exploration Corporation (OTCBB: ASPN), with offices in Bakersfield, California, and Denver, Colorado, announced today it has drilled a new gas well and performed a successful flow test on a recently drilled gas well in the Sacramento Valley gas province of northern California.

The Johnson Unit #12 well, located in the Malton Black Butte Field, Tehama County, California, was drilled to a depth of 4,700 feet and encountered 100 feet of potential gas pay in several intervals in the Forbes formation. Production casing was run based on favorable mud log and electric log responses. This was the ninth successful gas well out of ten attempts by Aspen in this field. Aspen has a 36% operated working interest in this well.

The Stoddard-Johnston #1-1 well, located in the West Grimes Gas Field, Colusa County, California, was drilled to a depth of 8,700 feet and encountered 60 feet of potential gas pay in several intervals in the Forbes formation. One of these Forbes intervals was perforated and tested gas on a 3/16 inch choke at a stabilized rate of 1,628 MCFPD. The shut in pressure is in excess of 5,000 psig. Aspen has a 21% operated working interest in this well.

The Alston #23-2 well, located in the Rice Creek Gas Field, Tehama County, California, was drilled to a depth of 5,700 feet and encountered potential gas pay in the Forbes formation. Several of these Forbes intervals were perforated and commercial gas production has not been obtained thus far. The well is currently shut in for further evaluation. Aspen has a 38.75% operated working interest in this well.

Aspen also reported that the September 4, 2006 issue of the Oil & Gas Journal (OGJ) named Aspen among the Top 20 Fastest Growing companies for 2005 based on percentage growth in stockholder equity. The OGJ annually ranks U.S.-based, publicly traded oil and gas producers in its "OGJ200" article. Although primarily ranked in terms of assets, companies are additionally ranked on eleven other benchmarks including the fastest growing category. Aspen was ranked 120th in terms of assets (up from 127th last year), 19th fastest growing and 89th in net income.

Aspen entered into a gas sales contract for approximately 20% of its operated production, at a fixed gross PG&E Citygate price of $10.15 per MMBTU, for the five-month period from November 2006 through March 2007. Aspen also entered into an additional gas sales contract for approximately 20% of its operated production, at a fixed gross PG&E Citygate price of $7.30 per MMBTU, for the four-month period from December 2006 through March 2007.

Aspen drilled ten successful operated gas wells out of eleven attempts in 2006, and nine gas wells out of ten attempts in 2005. During the last 6 years, Aspen has participated in the drilling of 46 operated wells, 39 of which were completed as gas wells, and 7 dry holes, a success rate of 85%. Aspen currently operates 56 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

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