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: www.aspenexploration.com
ASPEN EXPLORATION ACQUIRES WORKING INTEREST
IN MONTANA OIL
PRODUCTION AND LARGE ACREAGE POSITION
For immediate release:
Denver, Colorado, February 13, 2007.
Aspen Exploration Corporation (OTCBB: ASPN) with offices in Denver and Bakersfield,
CA is pleased to announce the acquisition of a 10% (12.5% working interest before
payout of 110% of Aspen’s investment) non-operated working interest in the East
Poplar Unit and Northwest Poplar Field in Roosevelt County, Montana. This field is operated by Nautilus Technical
Group, LLC of Denver, CO. These fields
underlie approximately 22,600 net acres which have 3-D seismic data
coverage. The current production rate is
230 BOPD from 38 producing wells completed in the Heath and the Charles “A”,
“B”, and “C” intervals. The average net
revenue interest is greater than 80%.
The crude oil is 40˚ API sweet and is readily marketed at the lease
boundary. All
produced water is disposed within the Unit boundary. Nautilus engineers have estimated net
remaining proved developed reserves of 1.6 million barrels of oil and total
proved remaining reserves of 4.9 million barrels of crude oil. They have also estimated future net cash flow
of $27.8 million for proved producing reserves and $135.3 million for total
proved reserves based on a $50 per barrel NYMEX price. These forecasts of
reserves and estimated cash flow pertain to 100% of the working interests
acquired by Nautilus, including the portion acquired by Aspen.
Nautilus proposes to increase oil
production and recoverable reserves from the field by:
- Completing 2 permitted water
injection wells and placing 5 currently shut-in wells back on production.
- Increasing production rates in
existing producing wells.
- Enhancing the water disposal
facilities in the Field.
- Recompleting behind pipe zones in
existing wells.
- Interpreting a 3D seismic survey
over the 22,600 acres to determine the optimal placement for infill
drilling locations and potential locations for tests in other reservoirs.
* * * M O R E *
* *
Work on the field enhancement will begin
in March 2007, and Nautilus’ ability to achieve its goals is subject to risks
normally associated with oil producing activities.
Aspen’s
participation in this acquisition will provide Aspen with diversification into
long-lived oil reserves exhibiting a low decline rate, a potential decrease in
D, D, & A expense, and a potential increase in Aspen’s net proved reserves
by about 50%. This projected potential
reserve increase is based on Aspen’s
internal reserve estimates after a review of the information provided by
Nautilus’ engineers. The initial cost to Aspen for its 12.5% before
payout working interest (including its share of the acquisition costs) will be
approximately $1,500,000, with an additional $400,000 of anticipated capital
expenditures during the first year. Aspen funded its
participation in this project with a combination of bank debt ($600,000), cash
on hand, and the sale of approximately 100,000 shares of UR Energy stock, which
yielded about $330,000.
The effective date
of the acquisition was January 1, 2007 and the closing date was February 13,
2007.
Aspen’s stock is
quoted on the OTC Bulletin Board under the symbol ASPN. For more information concerning oil and gas
operations 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.
* * * E N D * *
*
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 the
Company’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
an 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.