Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

August 23, 2007 09:23 ET

Contact Exploration Inc.: Stoney Creek Production Results and Future Plans

CALGARY, ALBERTA--(Marketwire - Aug. 23, 2007) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce its plans to expedite production from the company's booked reserves of 1.2 million barrels and 6.5 bcf natural gas in the 100% owned Stoney Creek Field.

For the month of June, production from the Stoney Creek field was 750 barrels of crude oil. In the month of July production was 900 barrels of crude oil. Optimization of production operations is ongoing and plans are in place to re-work and bring into production up to an additional 14 existing vertical wellbores. Application for re-work of the wells was submitted to both the New Brunswick Departments of Natural Resources and Environment on July 23, 2007. A service rig to conduct the re-works is currently operating in the area and should be available in late September or when permitting is complete. Re-works of existing but non-producing wellbores is an efficient and cost effective method of exploiting the estimated $31 million in proved and probable reserves in Stoney Creek. The initial re-work candidates have been chosen by studying original drilling records and recently recorded well logs. Most re-work candidates have multiple pay zones that were either bypassed or underutilized in the production of the field. We are firmly committed to increase field production levels in Stoney Creek to exploit this known resource.

We are continuing to study the results of the Shenstone G75-2328 well which was recently suspended in the South Stoney Creek field. We are conducting the analysis with our 40% working interest partner in the prospect with a goal of determining the optimum location for the second South Stoney Creek well. An announcement on the next location will be forthcoming when the study of the geology is complete. Analysis from both the Shenstone G75-2328 well and the nearby Downey #1 well will be used to make the determination.

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 American 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.

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