Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

September 06, 2007 09:00 ET

Contact Exploration Inc.: Drilling Underway on Nova Scotia Shale Acreage

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) - Contact Exploration Inc. ("Contact"), (TSX VENTURE:CEX) is pleased to announce that Triangle Petroleum Corporation ("Triangle"), has commenced drilling of the Kennetcook #1 well on Contact's Windsor Block in Nova Scotia.

Triangle has announced that the Precision Rig #176 is contracted and drilling has commenced at the Kennetcook #1 well. This well is the first of Triangle's two planned vertical wells in the Windsor Basin. Both wells are expected to be drilled to a depth of approximately 1,350 - 1,500 metres. Triangle is the operator of the well and has the right to earn a 70% interest in Contact's 516,000 gross acre Windsor Block by completing the Kennetcook #1.

The locations were chosen based on previous geological work in the area, and significant coring and logging operations will be undertaken during drilling to more fully analyse the potential resource. Triangle's geological mapping and analysis of the entire basin included the review of approximately 120 miles of 2-D seismic over this acreage along with drill cuttings and log analysis from a 1975 well which indicated in excess of 200 metres of shale thickness believed to be capable of gas production. The Mississippian Horton Group is the target shale zone.

The Kennetcook # 1 will be the first of Triangle's two vertical wells in the Windsor Basin, which are expected to be complete by early October. These wellsite locations were chosen based upon the geological work as stated above and the close proximity to the 1975 conventional well. During the drilling of these two wells, Triangle will perform extensive coring and logging.

In addition to the two vertical wells, Triangle is planning to acquire a 25 square mile 3-D and a 30 mile 2-D seismic program in order to further define the Horton Shale over a select area of the land block. The seismic program is currently in the permitting and field logistics phase and is expected to be acquired this fall. Processing is scheduled to occur over the winter months.

For the completion of the Windsor wells, Triangle will develop a hydraulic fracture stimulation program for the two wells once the analysis of the core samples, logs, and other tests have been completed. Completion and flow testing of both wells is anticipated to occur in the fourth quarter of this year. The technical evaluation of the drilling, coring, seismic and completion programs will allow Triangle's exploration team to quantify the gas in place estimates. These results will then be reviewed and verified by independent industry experts by the end of this year. For more information and ongoing updates please refer to the Triangle Petroleum Corporation website at www.trianglepetroleum.com under the heading "recent news".

Contact announced the farm-out of the Windsor block to Triangle on June 11, 2007. The Kennetcook #1 well will be part of the earning process in the Windsor block. By moving to a non-operated working interest in the Windsor block, Contact is able to still participate significantly in the area with a company whose expertise is shale gas exploitation, while allocating operational resources to the Stoney Creek field production and South Stoney Creek exploration activities. Additionally, Triangle has the option to earn a working interest in Contact's 68,000 acre shale gas horizon in New Brunswick.

About Contact

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North America with pipeline and refinery infrastructure in place.

Contact has interests in approximately 1.5 million acres onshore Nova Scotia, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore New Brunswick which includes the Stoney Creek Field (approximately 5500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 6.5 bcf of natural gas.

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.

Contact Information