Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

July 23, 2009 09:00 ET

Contact Announces Oil and Gas Reserves Value Increase and Year-End Filings

CALGARY, ALBERTA--(Marketwire - July 23, 2009) - Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX) is pleased to announce the results from the year-end evaluation of its Stoney Creek, New Brunswick and Stoughton, Saskatchewan oil and gas reserves by the independent firm of Martin & Brusset Associates of Calgary, as well as the filing of year-end documents on SEDAR.

As stated in the reserves report, which was conducted in accordance with National Instrument 51-101 of the Canadian Securities Administrators, Contact's reserves, which include the 100% working interest Stoney Creek field and Stoughton wells are estimated to contain proved and probable reserves of 1,316,000 barrels of oil and 7.149 billion cubic feet of natural gas. These ultimate estimated reserves, when discounted at 10% using forecast pricing, give a net present value of $54,041,000. The estimates are net values before tax and after royalties.

"We are pleased to have the net present value of our reserves increase by approximately 20% over last year's numbers," commented Darcy Spady, President of Contact Exploration Inc. The majority of the reserve report was for the conventional Stoney Creek Field in New Brunswick, which represents a small portion (5,500 acres) of the Company's portfolio of properties, and overlies the significant Beech Hill / Frederick Brook shale gas prospect. This current reserve report provides no value to any of Contact's shale gas prospects.

Details of the reserve report have been included with the year end results contained in the "Statement of Reserves Data and Other Oil and Gas Information" (Form 51-101F1) for the year ending March 31, 2009, which is available along with our full financial year end filings at www.sedar.com.

About Contact Exploration Inc.

Contact Exploration Inc. is a public company with a focus on Canadian East Coast onshore oil production & exploration.

Our philosophy is to operate production and exploration in our core area of Atlantic Canada, and to participate through overrides and carried interests in regional unconventional plays, such as coalbed methane in the Cumberland Basin, shale gas in the Windsor area, and exploration on the west coast of Newfoundland.

Contact has onshore interests in Nova Scotia, Newfoundland and New Brunswick which includes the Stoney Creek Field (approximately 5,500 acres), a field with estimated proved and probable reserves of 1.3 million barrels of oil and 7.1 bcf of natural gas, and the Frederick Brook Shale Prospect in South Stoney Creek (68,000 acres). In addition to the Atlantic Canadian properties, Contact has producing oil assets in south eastern Saskatchewan.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information