Research Pit

[Jagman]

Aspen Exploration Drills Fifth Consecutive Successful Gas Well This Year Kirk Field, Colusa County, California
Wednesday August 31, 11:31 am ET

DENVER, CO--(MARKET WIRE)--Aug 31, 2005 -- Aspen Exploration Corporation (OTC BB:ASPN.OB - News), with offices in Bakersfield, California, and Denver, Colorado, announced today its fifth consecutive gas discovery in the Sacramento Valley gas province of northern California.

The Heidrick #11-1 well located in the Kirk Gas Field, Colusa County, California, was drilled to a depth of 8,532 feet and encountered approximately 80 feet of potential gross gas pay in several intervals in the Forbes formation. Production casing was run based on favorable mud log and electric log responses. Aspen has a 38.67% operated working interest in this well.

The rig will now be moving to drill the Farnsworth #3-35 well, Aspen's seventh well this year, located in the West Grimes Gas Field, Colusa County, California. Following the Farnsworth #3-35 well, Aspen currently has scheduled 3 additional wells to drill this year in the Sacramento Valley and is also evaluating the drilling and/or completion of additional wells in the upcoming "winter" season.

Aspen drilled ten successful gas wells out of ten attempts in 2004 for a 100% success rate, and five gas wells out of six attempted thus far in 2005. During the previous 4 1/2 years, Aspen participated in the drilling of 30 operated wells, 26 of which were completed as gas wells, and 4 dry holes which were plugged and abandoned, a success rate of 87%. Aspen currently operates 49 gas wells and has non-operated interests in 15 additional wells in the Sacramento Valley of northern California.

Aspen has entered into fixed contracts for a portion (approximately 33%) of its gas, at fixed prices ranging from $8.40 to $11.02 per MMBTU for the five-month period from November 2005 through March 2006. Aspen's summer hedge for the 6-month period ending September 30, 2005, was approximately $6.67 per MMBTU for 40% of Aspen's production. PG&E Citygate gross prices are currently $1.00 per MMBTU less than NYMEX gas prices.

Future news releases will keep shareholders informed of Aspen's continuing progress and drilling activity. Aspen's stock is quoted on the OTC Bulletin Board under the symbol ASPN. For more information concerning Aspen, contact Bob Cohan, President and CEO, in Aspen's Bakersfield office at [phone]. Aspen's web page can be found at www.aspenexploration.com.



DISCLAIMER

This news release contains information that is "forward-looking" in that it describes 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 proposed exploration 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 made herein.

ASPEN EXPLORATION CORPORATION
2050 S. Oneida St., Ste. 208
Denver, CO 80224-2426
Telephone: [phone]
Fax: [phone]
Email: [e-mail]
Web Site: http://www.aspenexploration.com



Contact:
Contact:
Bob Cohan
Company: Aspen Exploration Corporation
Phone: [phone]
Fax: [phone]
Email: [e-mail]
URL: http://www.aspenexploration.com