Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

May 23, 2006 17:52 ET

Contact Exploration Inc.: Stoney Creek Retesting Program

CALGARY, ALBERTA--(CCNMatthews - May 23, 2006) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to provide a further update on the Stoney Creek field. The company is in the permitting phase of a 30 well retesting and work-over program for the Stoney Creek field. After reviewing all technical data, it is Contact's belief that many of the existing wells have additional production potential from both existing zones and zones that were never adequately tested.

Contact plans to conduct an extensive test of approximately 24 gas wells and 6 oil wells to confirm productive capacity. Field work is anticipated to commence around the end of June and will take approximately 60 days to complete and evaluate. Contact sees these wells as a very cost effective way to secure early cash flow to compliment both our Stoney Creek horizontal drilling program and our ongoing exploration program adjacent to the Stoney Creek field.

Contact will utilize the deliverability information from the gas testing to help justify the required infrastructure for gas sales. Any additional oil productivity established would be processed through Contact's treatment facility that is being built for the horizontal well producers.

Contact also announces the issuance of options under its stock option plan to its consultants and directors, entitling them to purchase up to 650,000 common shares at a price of $1.28 per share, exercisable for a period of five years.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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