ASPEN EXPLORATION CORPORATION
2050 S. Oneida St., Ste. 208
Denver, CO  80224-2426
Telephone:  (303)  639-9860
Fax:  (303)  639-9863
Email:  aecorp2@qwestoffice.net
Web Site:  www.aspenexploration.com

ASPEN EXPLORATION ANNOUNCES SEISMIC WORK, DRILLING COMMENCEMENT, GAS SALES

FOR IMMEDIATE RELEASE:

DENVER, COLORADO, April 3, 2008.  Aspen Exploration Corporation (OTCBB: ASPN.OB), with offices in Bakersfield, California and Denver, Colorado, announced that it has completed 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.  The cost of the 12 square mile program, which, because of agricultural developments in the area, must be supported by helicopter, was approximately $700,000.  Aspen shared the cost of this 3-D seismic program with its working interest partners in the area.  Aspen expects to begin data processing in early April.  Depending on results of the interpretation, we anticipate drilling possibly two to three wells in this area during the summer or fall of 2008, where Aspen has a 32% operated working interest.

Aspen plans to drill an additional five to seven gas tests in the Sacramento Valley gas province of northern California, including the counties of Colusa, Glenn, Tehama and Yolo, between April and October of 2008.  Four of the anticipated wells will be drilled on leases obtained through a farmout from an industry partner and will target the Starkey and Forbes formations at depths ranging from 4100 feet to 5800 feet.  Aspen has operated working interest in these areas ranging from 21% to 31%.  The first well will be drilled starting in approximately two weeks.  The actual timing and drilling of the other wells will be contingent on permits and drilling rig availability.  As currently planned, consulting engineers will be supervising the drilling on behalf of Aspen.

Aspen continues gas production from 64 wells in California operated by Aspen and 22 wells operated by others.  For February 2008 Aspen’s 64 operated wells produced approximately 170,800 MMBTU.  Approximately 38% of February’s production received an average price of $7.97/MMBTU, and approximately 62% of February’s production received an average price of $8.29/MMBTU.  Currently, 2,000 MMBTU/day is hedged at $9.02 for the period November 1, 2007 through March 31, 2008.

Aspen has entered into a gas sales contract to sell Enserco 1,000 MMBTU of gas per day at a fixed price of $8.61 per MMBTU less transportation and other expenses; and 1,000 MMBTU of gas per day at a fixed price of $8.81 per MMBTU less transportation and other expenses.  Aspen also entered into a gas sales contract to sell Calpine 500 MMBTU of gas per day at a fixed price of $8.80 per MMBTU less transportation and other expenses.  These contracts are each for the term of April 1, 2008 through October 31, 2008.

 

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 Reports from Bakersfield, CA, are that Robert A. Cohan, Aspen’s president, is continuing with his recovery from a stroke that occurred on January 9, 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.