Aspen Exploration Announces Minerals Development Progress.

DENVER--(BUSINESS WIRE)--May 8, 1998--Aspen Exploration Corp., headquartered in Denver, has announced significant developments in its oil and gas and uranium activities.

R. V. Bailey, president, said that exploration and development work for oil and gas in California has resulted in a string of successes under the guidance of Robert Cohan, vice president in Bakersfield. In the ongoing program, Aspen has acquired interests in several exploration and development projects with interests ranging from 10% to 23.55%. To finance drilling activities, Aspen raises funds from investors and/or pays its way from internally-generated sources such as oil and gas production.

Natural gas prices have remained strong in California and are forecast to remain firm through the summer months of 1998. Natural gas for May is quoted at $2.42/MMBTU. Oil prices, in contrast, have declined to about $12 per barrel compared to $20 per barrel in early 1997.

Among the highlights of recent accomplishments by Aspen was the drilling and completion of the Emigh 2-1 well in the Denverton Creek field, Solano County, California, to a depth of 10,600 feet. This well tested at more than 5 million cubic feet per day of high BTU (1060) gas (which equates to 5,300 MMBTU per day) and 32 barrels of condensate per day. More than 120 feet of pay was identified by well logs and the well commenced production in November 1997. Current production is 4,640 MMBTU per day and 25 barrels of condensate per day. Aspen has a 23.55% interest in this well and in the successful Emigh 34-1, an offset well completed in late 1996 and currently producing 800 MMBTU per day. Seven potential additional drilling locations have been identified in the Denverton Creek field where Aspen is the operator. The next development well is scheduled by Aspen to commence drilling in May, 1998. Hart's Oil and Gas World, an industry publication, has cited the Emigh 2-1 as the Best of the Pacific in the new well category for 1997.

In 1996 Aspen and others purchased several producing wells and acreage in the West Bellevue and Rosedale fields located just west of Bakersfield. Aspen is the operator and owns working interests from 12% to 18% in the wells. In late 1997 the wells acquired were producing about 50 barrels of oil per day. Aspen has increased that production through the drilling of a new well, recompletion of a well in a behind-pipe zone, and construction of a pipeline to connect a shut-in gas well. The acquired wells plus the new well are currently flowing at a restricted (choked) rate of approximately 275 barrels oil per day and 100 MMBTU of gas per day. Several additional drilling locations have been identified in the two fields on acreage controlled by Aspen.

In other California action, in 1997 Aspen drilled and completed a gas well in Colusa County in the Northwest Compton Landing field. This well, in which Aspen has a 7% working interest converting to an 18.1% interest after payout, is currently producing at a rate of 300 MMBTU per day. A new target is the gas potential in San Joaquin County, three miles southeast of the prolific McMullin Ranch gas field. Aspen has staked the Brocchini 4-1 over a structural feature identified by recently-acquired seismic data plus well control; drilling commenced on this well May 5, 1998. Aspen has a 10% working interest before payout which converts to a 20% working interest after payout in the Brocchini well.

Uranium prices increased to nearly $16 per pound in 1996 and have declined to about $11 per pound. However, based on industry reports, world-wide demand for uranium is expected to exceed production capability by more than 20,000,000 pounds per year in the near future. Aspen management has decided to engage in exploration and development for deposits amenable to relatively low cost and environment-friendly in situ leaching. In order to move forward with this activity, Aspen has formed an alliance with a new company based in Toronto whereby the privately-held Toronto company has made a cash payment to Aspen of $125,000 and is expected to provide certain financing for the projects. As a result of this transaction, Aspen conveyed its interest in certain Wyoming uranium prospect areas as well as geological information pertaining to the prospects to the Toronto company. Aspen owns a minority interest in the new company. Exploration activity is expected to commence in May, 1998.

Stock of Aspen Exploration is quoted on the OTC Bulletin Board under the symbol ASPN. For more information contact the company office in Denver at 303/639-9860, R. V. Bailey, or the Bakersfield office at 805/588-9311, Robert Cohan. -0-

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 is dependent upon a number of factors, and there can be no assurance that Aspen will achieve the results as contemplated herein. Forward-looking statements contained herein may be identified because they use the terms "may," "expects to," and other terms denoting future possibilities. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks including, but not limited to: the possibility that the described operations, reserves, or exploration or production activities will not be completed or continued on economic terms, if at all. The exploration, development and mining of oil and gas, and mineral properties is an enterprise attendant with high risk, including the risk of fluctuating prices for the oil, gas, and other minerals being sought, the risks of not encountering adequate resources despite expending large sums of money, and the risk that test results may not be accurate, notwithstanding appropriate precautions. Aspen's ability to participate in these projects may be dependent on the availability to Aspen of adequate financing from third parties which may not be available on commercially-reasonable terms, if at all. Many of these risks are described 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.

CONTACT: Aspen Exploration Corp.

R. V. Bailey, 303/639-9860 (Denver)

Robert Cohan, 805/588-9311 (Bakersfield, Calif.)