Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

April 23, 2007 04:00 ET

Contact Exploration Inc.: Stoney Creek Operations Update

CALGARY, ALBERTA--(CCNMatthews - April 23, 2007) - Contact Exploration Inc. (TSX VENTURE:CEX) wishes to update the current status of its approval process with respect to placing our Stoney Creek horizontal wells I-88 & A-89 on production as reported on March 8, 2007 . Both wells are located on Contact's 100% working interest Stoney Creek field located near Moncton, New Brunswick.

Contact is pleased to report that on March 16, 2007, it received a Certificate of Determination to proceed with its Stoney Creek field development under the New Brunswick Environmental Impact Assessment regulations. This approval was followed by an "Approval to Construct and Operate" which was received from the Department of Environment on March 26, 2007. The final approval required is for the installation of production tanks which involves a separate approval procedure. Contact has now finalized the requirements for this approval with the regulatory bodies involved and is required to make a minor change to the platform bases under the existing tanks to conform to New Brunswick regulations. The materials for this have been procured and Contact is currently planning on completing this work within the next week, weather permitting. Once this is accomplished, a final inspection is required which will complete the approval process and allow Contact to place the wells on full production. Contact anticipates that this entire process should be completed within the next two weeks.

In addition Contact has completed its assessment and interpretation of the seismic shot in the summer of 2006 in the South Stoney Creek area and we have identified 3 potential targets. We plan on drilling 2 wells prior to year end with the first well expected to commence drilling in July 2007 pending rig availability and regulatory approvals. Further details on this drilling program will follow prior to spudding the first well.

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.

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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