SOURCE: Aspen Exploration Corporation

August 29, 2005 11:43 ET

Aspen Exploration Tests Fourth Successful Gas Well This Year

High Volume Gas Well - West Grimes Field, Colusa County, California

DENVER, CO -- (MARKET WIRE) -- August 29, 2005 -- Aspen Exploration Corporation (OTC BB: ASPN), with offices in Bakersfield, California, and Denver, Colorado, announced today its fourth consecutive successful flow test on a recently drilled gas well in the Sacramento Valley gas province of northern California.

The Strain #10-2 well, located in the West Grimes Gas Field, Colusa County, California, was drilled to a depth of 8,012 feet and encountered approximately 75 feet of potential gross gas pay in two intervals in the Forbes formation. One of these Forbes intervals was perforated and tested gas on a 3/16" choke at a stabilized rate of 3,163 MCFPD with a flowing tubing pressure of 3,900 psig and a flowing casing pressure of 4,000 psig. The shut in tubing pressure was 4,200 psig. The well only experienced a 7% pressure drawdown while flowing at the prolific rate of 3,163 MCFPD, which is indicative that this zone is capable of flowing at a higher gas rate. Aspen has a 21% operated working interest in this well.

Aspen has also re-perforated the currently producing interval in one of its older wells in this field and production from this well has increased fivefold from 50 MCFPD to 250 MCFPD. This well has been producing for nearly 20 years and has produced approximately 1.5 billion cubic feet (BCF) of gas. The costs to re-perforate this well was minor ($11,000) compared to the costs to drill a new well to 8,000 feet ($900,000). Aspen is evaluating several of its existing gas wells where this technique may be applicable for increasing production.

The Heidrick #11-1 well, Aspen's sixth well this year, located in the Kirk Gas Field, Colusa County, California is currently being drilled. Following the Heidrick #11-1 well, Aspen currently has scheduled 4 additional wells to drill this year in the Sacramento Valley and is also evaluating the drilling and/or completion of additional wells in the upcoming "winter" season.

Aspen drilled ten successful gas wells out of ten attempts in 2004 for a 100% success rate, and four gas wells out of five attempted thus far in 2005. During the previous 41/2 years, Aspen participated in the drilling of 29 operated wells, 25 of which were completed as gas wells, and 4 dry holes which were plugged and abandoned, a success rate of 86%. Aspen currently operates 48 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


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.

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