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

ASPEN EXPLORATION REPORTS FIRST QUARTER RESULTS

FOR IMMEDIATE RELEASE:

DENVER, COLORADO, November 20, 2006. Aspen Exploration Corporation (OTCBB: ASPN), an energy company with offices in Bakersfield, California, and Denver, Colorado, announced today results for its first fiscal quarter ended September 30,2006. For the first quarter, the Company reported revenues of $1,080,000, a decrease of 10%, as compared to the year-earlier period revenues of $1,194,000, and net after tax profit of $271,000, or $0.04 per diluted share compared to $461,000 a year earlier, or $0.06 per diluted share.

The Company reported slightly lower revenues for the quarter ended September 30, 2006, even though gas production increased 8% to 1,741 MCF per day from 1,609 MCF per day for the prior year three month period. This was due to a 19% decrease in the average gas prices received for the current quarter to a price of $6.08 per MMBTU versus $7.26 per MMBTU for the quarter ended September 30, 2005.

Net income before interest, depletion, depreciation and taxes decreased 34% to $670,000, or $0.09 per diluted share, compared to $896,000, or $0.13 per diluted share for the prior three month period.

The decrease in Company earnings resulted primarily from an increase in our general and administrative expenses of about 117% due substantially to increased audit and accounting fees of approximately $133,000 (required to remain in compliance with the Sarbanes-Oxley Act), and non-cash charges of approximately $55,000, partially as a result of recognition of additional share-based compensation expense, and the amortization of deferred compensation related to the initiation of an investor relations service of $113,000 settled in shares of our common stock. The shares were issued in a prior period and expensed as services are provided. Recognition of share-based compensation expense was the result of the Company’s implementation of FAS 123® during the quarter. Another factor for the decreased earnings was the fact that the depletion, depreciation and amortization expense increased approximately $226,000 for the three months ended September 30, 2006. This increase of 89% was the result of using the approximate same depletion rate as fiscal 2006, but applying it to a larger full cost pool which resulted in the higher total depletion taken.

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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.

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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 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.