Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

July 17, 2007 18:58 ET

Contact Exploration Inc.: Evaluation of Stoney Creek Reserves Complete

CALGARY, ALBERTA--(Marketwire - July 16, 2007) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to report the results from the evaluation of its Stoney Creek oil and gas reserves by the independent firm of Martin & Brusset Associates of Calgary.

As stated in the reserves report, which was conducted in adherence with National Instrument 51-101 of the Canadian Securities Administrators, Contact's 100% working interest Stoney Creek field is estimated to contain proved and probable reserves of 1,207,000 barrels of oil and 6.525 billion cubic feet of natural gas. These ultimate estimated reserves, when discounted at 10% using constant pricing, give a net present value for the field of $31,242,000. The estimates are net values before tax and after royalties.

"This independent evaluation is a defining moment for Contact as it concentrates on augmenting its exploratory past with solid production into the future from a known, defined reserve," commented Darcy Spady, President of Contact Exploration Inc. He also noted that, "In addition to verifying what hydrocarbons are in place for production from the Stoney Creek field, this report also allows the market to identify a solid asset value for the company's first production operation."

The Stoney Creek Field represents a portion (75,000 acres) of the Company's portfolio of properties and lies adjacent to the company's South Stoney Creek property where preparations are underway to begin the upcoming drilling program as announced on July 9, 2007.

Full details of the reserve report will be included with the year end results to be filed in the "Annual Information Form" and "Statement of Reserves Data and Other Oil and Gas Information" for the year ending March 31, 2007 on or before July 31, 2007.

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, 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.

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