ASPEN EXPLORATION ANNOUNCES OIL PRODUCTION AND RESERVES INCREASE

FOR IMMEDIATE RELEASE:  

DENVER, COLORADO, March 5, 2008.  Aspen Exploration Corporation (OTCBB: ASPN.OB), 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 Nautilus president and petroleum engineer Roland Blauer.  Nautilus has advised Aspen that 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 barrels acquired 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.

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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.

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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.