Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

July 03, 2008 09:10 ET

Contact Announces Working Interest Participation in Windsor Shale Exploration Activities

CALGARY, ALBERTA--(Marketwire - July 3, 2008) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce that it has elected to participate on a working interest basis in the Windsor Shale prospect in Nova Scotia. Contact originally identified and acquired the Windsor Shale block in 2002 and subsequently farmed out a 70% working interest to Triangle Petroleum Corporation ("Triangle"). Contact retained the right to participate with a 30% working interest or to convert its working interest to a 5% Gross Overriding Royalty. Contact has notified Triangle, the operator of the property, that it will continue as a 30% working interest partner.

"Contact is pleased to be an active working interest participant in the continued exploration and development of our exciting shale gas play," commented Darcy Spady, President and CEO of Contact. "We look forward to having our group liaise with the technical teams of Triangle and Zodiac Exploration Corp. to expedite the definition of this resource." Contact will continue its 30% working interest participation into the future as well as participate retroactively on the already drilled Kennetcook #2 well and the 3D seismic data that was procured by Triangle last fall.

Expenditures for the retroactive participation in the Kenetcook #2 well and seismic will be approximately $3 million. The Kennetcook #1 well was carried at no cost to Contact by Triangle as part of the earning process on the block.

More information on the next wells will become available as details on this summer's drilling program are finalized. The next well on the prospect is expected to spud in July and is a 3,000 metre vertical test that targets the deeper and considerably thicker shale package, in an undrilled fault block north of first two vertical test wells.

About Contact Exploration Inc.

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore conventional exploration, shale gas exploration & oil production. Contact's holdings and operations are located in close proximity to one of the world's largest consumption markets, near strong pipeline and refining infrastructure and in mature jurisdictions with reasonable royalty structures in place.

Contact's philosophy is to operate production and exploration in our core area of Atlantic Canada, and to participate in unconventional shale gas exploration, such as the Windsor Shale Block in Nova Scotia and the Beech Hill Shale Prospect in New Brunswick (both of which prospects were generated by Contact).

Contact has onshore interests in approximately 700,000 acres in Nova Scotia, approximately 70,000 acres in west Newfoundland and 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5,500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 6.5 bcf of natural gas. In addition to the Atlantic Canadian properties, Contact has producing oil assets in south eastern Saskatchewan.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks detailed from time to time in Contact's Annual Information Form and Management's Discussion and Analysis, both of which may be found at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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