Message #23 From:
NewsBot Date: February 14, 2005 10:42:56 AM
ASPN Aspen Exploration Announces New Well Connection
Aspen Exploration Announces New Well Connection
Wednesday December 15, 11:01 am ET
Company Commences Gas Sales From the Eleventh Gas Well This Year
BAKERSFIELD, CA--(MARKET WIRE)--Dec 15, 2004 -- Aspen Exploration Corporation (OTC BB:ASPN.OB - News), with offices in Bakersfield, California, and Denver, Colorado, announced today commencement of gas sales from another well in the Sacramento Valley gas province of northern California.
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The Verona #1, located in the Verona Gas Field, Sutter County, California, was drilled by another operator approximately 21 years ago to a depth of 3,800 feet and encountered 30 feet of gas pay in the Mokelumne Sand at a depth of 2,150 feet. The upper portion (6 feet) of this zone was perforated and tested at a rate of 3,000 MCFPD. For various reasons, the prior operators of the Verona #1 were never able to connect this well to a gas pipeline.
Aspen and partners acquired this well in March 2003 and have been diligently pursuing the issuance of permits with numerous governmental agencies to effectuate the pipeline route construction including a major river bore. All of the permits were obtained, the pipeline was constructed, and gas sales commenced on December 1, 2004 at a rate of 500 MCFPD with no pressure drawdown. Aspen could produce this well at higher rates but prefers to produce the well at a more modest rate and prolong the longevity of the production. Aspen has a 30% operated working interest in this well.
In addition to the Verona well, Aspen has drilled ten successful gas wells out of ten attempts in 2004 for a 100% success rate. "We believe that our strategy of focusing on low-risk exploration activities has contributed to our success," said Robert A. Cohan, Aspen Exploration Corporation's Chief Executive Officer. "Aspen's increased cash flow coupled with the present inventory of prime drilling acreage provides a sound basis for Aspen's continued growth as a profitable and successful energy producer." Aspen's drilling success has increased its gross operated production to 11,200 MCFPD (2,250 MCFPD net to Aspen). Aspen's net production has nearly tripled during the last 12 months.
During the last 4 years, Aspen participated in the drilling of 24 operated wells, 21 of which were completed as gas wells, and 3 dry holes which were plugged and abandoned, a success rate of 87.5%. Aspen currently operates 47 gas wells and has non-operated interests in 15 additional wells in the Sacramento Valley of northern California. Current spot gas prices are in excess of $6.50 per MMBtu. Aspen has also entered into fixed contracts for a portion (approximately 35%) of its gas, at fixed prices ranging from $6.90 to $8.75 per MMBtu for the five month period from November 2004 through March 2005.
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 (661) 831-4669. 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: (303) 639-9860
Fax: (303) 639-9863
Email: aecorp2@qwest.net
Web Site: http://www.aspenexploration.com
Contact:
Contact:
Bob Cohan
Company: Aspen Exploration Corporation
Phone: 661-831-4669
Fax: 661-831-4661
Email: robertacohan@igalaxy.net
URL: http://www.aspenexploration.com
