Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

April 07, 2006 03:15 ET

Contact Exploration Inc.: Stoney Creek Drilling Update

CALGARY, ALBERTA--(CCNMatthews - April 7, 2006) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to provide an update on drilling operations at its 100% owned Stoney Creek Field.

As announced on March 11th, 2006 Contact Exploration Inc. ("Contact") commenced its 2006 horizontal drill program following the utilization of modern technologies that included 3-D seismic and reservoir modeling to select initial locations for its drill program at Stoney Creek.

The first well; Horizontal Well A89-2328 has reached a true vertical depth of approximately 2,700 feet and intermediate casing has been cemented in place. Operations are now underway to complete the horizontal leg portion of between 1,000 to 2,000 feet with completion anticipated over the next two weeks. A completion rig will be mobilized once the well is finished. Permitting is currently underway for Production Test Facilities with equipment procurement in progress.

"To date, our drilling has confirmed our seismic model for the main target reservoir," states Terry Brown, President & CEO of Contact. "In addition, several secondary targets have been identified through hydrocarbon shows while drilling through them under the current program."

Contact's objective is to achieve commercial oil production during this first stage of development with follow-up drilling planned as a second stage to test and exploit new zones that have been identified in the field.

About Stoney Creek

Located approximately 10 miles south of Moncton, New Brunswick, the Stoney Creek Field is in close proximity to the largest consumption market in North America with existing pipeline and refinery infrastructure in place. Recognized as one of the oldest producing fields in Canada, the Stoney Creek field produced approximately 800,000 bbl of oil and 28.7 billion cubic feet of gas from 1909 to 1991. The reservoir is approximately 2,700 feet deep and averages 100 feet in thickness. The reservoir quality is excellent with porosity averaging 18% and permeability averaging 160 md. To date, less than 5% of the original oil in place has been recovered. Incremental gas reserves also exist. Utilizing 3-D seismic, 3-D reservoir modeling and horizontal drilling technology, Contact plans to exploit incremental oil and gas from the Stoney Creek field.

About Contact

Contact is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact has interests in approximately 2.3 million acres onshore Nova Scotia. In addition, Contact has interests in approximately 160,000 acres onshore West Newfoundland and 62,000 acres onshore New Brunswick.


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