Aspen Group Resources Corporation
TSX : ASR

Aspen Group Resources Corporation

July 31, 2006 09:00 ET

Aspen Updates Daly Field Drilling Program

CALGARY, ALBERTA--(CCNMatthews - July 31, 2006) - Aspen Group Resources Corporation (TSX:ASR) ("Aspen" or the "Company") today announced that six horizontal wells have been drilled and cased since April 2006, on the Company's acreage in the Daly Field in Manitoba, as part of a phased development program. Wells 1 through 5 were drilled in an eastern section of Aspen's acreage to further define the geological characteristics of the Upper Lodgepole, Middle Daly, and Bakken zones. The sixth well was drilled in the southern area of Aspen's acreage and targeted the Middle Daly zone. Completion and production testing of the six wells is ongoing.

Aspen has moved the contracted drilling equipment to drill a seventh well, the tenth well drilled overall by Aspen since inception of the Manitoba drilling program. This well is planned as a vertical water disposal well and is to be drilled from the same pad as the first two wells that were drilled in the program. Once this well is completed, the drilling rig will be released to another operator for two months.

After the scheduled break in drilling, Aspen plans to continue its drilling program on the acquired acreage. Two of the first three wells drilled last October in the first phase of drilling are oil productive. They are currently constrained due to the mechanical limitations of disposing large volumes of water. Once the water disposal well is operable, these two wells will be placed on production with much higher rates of oil volumes anticipated and lower water handling and operating costs.

The most recent wells, drilled since April 2006, were drilled higher structurally with encouraging results. All of the wells drilled established the presence of oil. However, due to the lower permeability in this portion of the field, an acid stimulation program is being implemented to maximize well productivities. To date, two wells have been stimulated with acid. One well responded successfully to the acid treatment and the other well showed minimal response to acidization. Acid treatment is now planned for three more of the additional wells drilled since April 2006. Results will be released after treating and testing of the wells is completed.

The two-month break in drilling will provide Aspen additional time to continue the acid treatment program and establish a production profile for the area. It will also allow the participants to identify the best targets for future drilling and to optimize the development of the Company's lands. Aspen has over 3,000 acres in the Daly Field that presents significant opportunities to utilize horizontal drilling to find and produce oil from a proven reservoir.

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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