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Aspen Exploration Announces Oil Production and Reserves Incr
ase
PRW: Aspen Exploration Announces Oil Production and Reserves Increase

DENVER, CO -- (MARKET WIRE) -- 03/05/08 --
Aspen Exploration Corporation (OTCBB: ASPN), with offices in Bakersfield,
California and Denver, Colorado, has announced an increase in production and
reserves from the Poplar Field in Montana. In January 2007, Aspen purchased
a 12.5% working interest in the existing Poplar Field in Roosevelt County,
Montana. After 110% payout Aspen's interest will revert to 10%. Nautilus
Poplar LLC, with headquarters in Denver, is Operator of the field and under
the direction of Nautiluspresident and petroleum engineer Roland Blauer.
Nautilus has advised Aspenthat highlights of developments at the field have
included the following:
1) Present value of proved developed reserves has increased from the
January 2007 purchase price of $10.8 million ($1,387,500 cost to Aspen),
to$31.1 million ($3.89 million net to Aspen), a 290% increase. The increase
occurred almost equally from an increased number of producing wells and
higher oil prices.
2) Gross proved developed reserves have increased from 2.2 million
barrelsacquired to 3.6 million barrels, a 1.6 fold increase (a change to
Aspen's 12.5% interest from 275,000 barrels to 450,000 barrels). The
additional reserves came from operations and management improvements of the
existing and producing reservoir and wells with no new drilling or new
interval completions and are also a function of increasing prices.
3) A projected 0.9 million barrels of proved but undeveloped reserves
have been identified for development during 2008. Project selection will be
modified as additional operational, geological and geophysical information
is developed and coordinated. Aspen's share of any reserves and its share
of drilling and completion costs will be 12.5%.
4) The daily average production has increased from approximately 200
barrels oil per day (BOPD) to more than 300 BOPD (25 BOPD and 37.5 BOPD net
to Aspen's interest).
5) The total number (gross, not net) of economic producing wells has
increased from 24 to 37.
6) The "break even" cost for producing Poplar oil is $24.75 per barrel and,
with oil prices now hovering near $100 per barrel, the economics of the
field are very attractive.
7) Development work is ongoing at Poplar Field and Nautilus management is
aiming to increase the daily production to about 400 BOPD (gross production)
in 2008, although there is no assurance this goal will be accomplished.
8) A third party has approached Nautilus about the possibility of working
out a farmout from Nautilus so prospective horizons below those now
producing can be tested for possible oil and/or gas production. Aspen
supports this possible farmout, although there can be no assurance that
Nautilus will be able to achieve any such farmout.
In other news, Aspen is preparing to start a 3-D seismic program in Colusa
County, California, in an area Aspen geologists regard as highly prospective
for natural gas reservoirs at depths from about 5,000 to 8,000 feet below
the surface. Aspen will share the cost of this 3-D seismic program with its
working interest partners in the area. Aspen continues gas production from
64 wells in California operated by Aspen and 22 wells operated by others.
A gas well in Colusa County, CA, the Harlan #1-24 well, was completed in
September 2007. This well has now been connected to a gas line connection
and is now producing gas at the rate of 500 MCF (thousand cubic feet) per
day. Aspen has a 34% working interest in this well.
Aspen's president, Robert A. Cohan, suffered a stroke on January 9, 2008,
and Mr. Cohan is recovering in medical facilities and at home in
Bakersfield, California. R. V. Bailey, board chairman and previous
president of Aspen, has assumed the responsibilities of CEO, and Kevan
Hensman, a board member, has assumed the responsibilities of CFO. Aspen's
geological and accounting consultants are continuing their work for Aspen.
Natural gas sales have continued uninterrupted. Mr. Bailey has stated that
Aspen is continuing to search for outstanding opportunities in oil
exploration and production in the western US, although exploration for, and
development of, natural gas in California will continue. Aspen expects to
participate in, and be the operator of, from 6 to 9 gas exploration wells in
California between April and October of 2008.
For more information, contact R. V. Bailey, CEO, in Aspen's Denver office at
303-639-9860. Aspen invites interested parties to visit Aspen's web site at
www.aspenexploration.com and be sure to register in the contact box for
updated news releases and other information.
DISCLAIMER
This news release contains information that is "forward-looking" in that
itdescribes events and conditions, which Aspen Exploration Corporation
("Aspen") reasonably expects to occur in the future. Expectations for the
future performance of the business of Aspen are dependent upon a number of
factors, and there can be no assurance that Aspen will achieve the results
as contemplated herein and there can be no assurance that Aspen will be able
to conduct its operations or production from its properties will continue as
contemplated herein. Certain statements contained in this report using the
terms "may," "expects to," and other terms denoting future possibilities,
are forward-looking statements. The accuracy of these statements cannot be
guaranteed as they are subject to a variety of risks, which are beyond
Aspen's ability to predict, or control and which may cause actual results to
differ materially from the projections or estimates contained herein. These
risks include, but are not limited to: the possibility that the described
operations (including any proposedexploration or development drilling) will
not be completed on economic terms, if at all, or the estimates of reserves
may not be accurate. The exploration for, and development and production
of, oil and gas are enterprises attendant with high risk, including the risk
of fluctuating prices for oil and natural gas, imports of petroleum products
from other countries, the risks of not encountering adequate resources
despite expending large sums of money, and the risk that test results and
reserve estimates may not be accurate, notwithstanding appropriate
precautions. Many of these risks are described herein and in Aspen's annual
report on Form 10-KSB, and it is important that each person reviewing this
report understand the significant risks attendant to the operations of
Aspen.Aspen disclaims any obligation to update any forward-looking statement
madeherein.
ASPEN EXPLORATION CORPORATION
2050 S. Oneida St., Ste. 208
Denver, CO 80224-2426
Telephone: [phone]
Fax: [phone]
Email: [e-mail]
Web Site: www.aspenexploration.com
Contact: R. V. Bailey CEO 303-639-9860 [e-mail]
(END) Dow Jones Newswires
March 05, 2008 11:55 ET (16:55 GMT)
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