Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

March 23, 2006 09:30 ET

Retransmission-Contact Exploration Inc.: Sproule Associates Confirms 1.183tcf of Discovered CBM Resources in Cumberland Basins

CALGARY, ALBERTA--(CCNMatthews - March 22, 2006) - Contact Exploration Inc. (TSX VENTURE:CEX) is very pleased to announce that Sproule Associates Ltd. of Calgary, Alberta (Sproule) has completed its independent third-party study confirming discovered Coal Bed Methane (CBM) resources in the Cumberland Basins (Cumberland property) in Nova Scotia. Total discovered CBM resource in place totals 1.183tcf. Contact's 25% working interest equates to approximately 296bcf. The report, in its entirety, will be posted to SEDAR (www.sedar.com) and also on Contact's website for review.

Located west of the town of Springhill, Nova Scotia and covering 178,000 gross acres the Cumberland property lies approximately 15 miles from a tie-in to the Maritimes and Northeast Pipeline (M&NP) mainline where both Contact Exploration (25% working interest) and Stealth Venture Ltd. (75% working interest) have confirmed capacity for the delivery of gas through the existing infrastructure.

"We are quite pleased with Sproule's confirmation of the CBM resource in the Cumberland Basin," states Terry Brown, President and CEO, Contact Exploration Inc. "While we are still at the early stages of the evaluation and development of this CBM play we are very encouraged by the successful drilling of the first horizontal well and eagerly await test results that will provide additional data including, reservoir pressure, coal permeability, and other data required to determine economic valuation."

Currently the operator, Stealth Ventures Ltd. (TSX VENTURE:SLV), is in the process of securing a completion rig and carrying out permitting that would facilitate the completion and testing of the recently completed "Coal Mine Brook #3 well". This well intersected more than 20 metres of net coal in multiple seams up-hole, before intermediate casing was set in the No. 6 coal at a vertical depth of approximately 1,133 metres. A horizontal lateral of 430 metres was drilled and a slotted liner successfully inserted over 425 metres of exposed coal. Overcoming perceived mechanical risks associated with drilling horizontally in the target coal was a major objective for this well. It is Contact's understanding that the completion and testing phase will commence within the next couple of months to coincide with additional area activity.

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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