Aspen Announces Recent Gas Discoveries
DENVER, CO -- 10/26/2004 -- Aspen Exploration Corporation (OTC BB: ASPN), with offices in Bakersfield, California, and Denver, Colorado, announced today two additional gas discoveries. Aspen has drilled nine successful gas wells out of nine attempts thus far this year and is currently drilling one additional well in the Sacramento Valley gas province of northern California.
“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.”
The Meckfessel #1-24, located in the Buckeye Gas Field, Colusa County, California, was drilled to a depth of 8,624 feet, and encountered 40 feet of gas pay in the Forbes formation. The upper portion of this zone was perforated and tested at a stabilized rate of 2,181 MCFPD on a 1/4 inch choke. This prolific formation has produced nearly 7 billion cubic feet (7 BCF) of gas from a well located approximately two miles away. This was the fourth consecutive successful well drilled on a recently acquired farmout package consisting of six quality drilling prospects which are leased and defined by 3-D seismic data and well control. Aspen has a 28.75% operated working interest in these wells.
The Swanson #22-1, located in the Rice Creek Gas Field, Tehama County, California, was drilled to a depth of 5,485 feet and encountered gas pay in the Forbes Formation. This zone was perforated and tested at a stabilized rate of 370 MCFPD of gas with a flowing tubing pressure of 1,165 psig and a flowing casing pressure of 1,165 psig. The shut in tubing pressure was 1,860 psig. Gas sales commenced on October 22nd. Aspen has a 34.48% operated working interest in this well. Aspen has drilled 5 producing gas wells out of 6 attempts in this field.
Drilling continues in the West Grimes Field, Colusa County, California. The fourth well in this project, the WGU #15-9, commenced drilling on October 23, 2004. The first 3 wells drilled were successful and are currently producing. One of these wells tested at a prolific stabilized rate of 4,845 MCFPD of gas with a flowing tubing pressure of 3,350 psig. This well was recently put on line at 3,000 MCFPD with a flowing tubing pressure of 3,400 psig. Aspen has a 21% operated working interest in this field. (See prior news releases for additional details about Aspen’s activities in this field).
During the last 4 years, Aspen participated in the drilling of 23 operated wells, 20 of which were completed as gas wells and 3 dry holes which were plugged and abandoned, a success rate of 87%. Aspen currently operates 48 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 of its gas, at prices as high as $7.97 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.
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.
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- Bob Cohan
- Aspen Exploration Corporation
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