Aspen Increases California Gas Production.

Business Editors/Energy Writers

DENVER--(BUSINESS WIRE)--Oct. 5, 2000

Aspen Exploration Corporation (OTCBB:ASPN), headquartered in Denver with an office in Bakersfield, California, has recently participated for a 5.125% non-operated working interest in the Cygnus No. 2 well, located slightly north of Aspen's leasehold, in the northwest quarter of Section 35, Township 5 North, Range 1 East, Solano County, California.

This well was directionally drilled to a depth of approximately 11,735 feet and encountered approximately 100 feet of potential net pay in the Starkey and Petersen formations. The Petersen sand was perforated and tested at a stabilized rate of 2,700 MCF per day (MCFPD) of high BTU natural gas (1081 BTU) with condensate.

The flowing tubing pressure was 3,870 pounds and the shut in tubing pressure was 4,490 pounds. Gas sales commenced on September 15th and the well is currently producing at a rate of 2,300 MCFPD, 25 barrels of condensate per day, and 3 barrels of water per day (BWPD), with a flowing tubing pressure of 3,850 pounds.

Aspen also drilled the Josey Wales No. 1 well, located approximately 1/2 mile northeast of the Cygnus No. 2 well. This well was drilled to a total depth of 10,800 feet and did not encounter any gas shows. Aspen farmed out the directional redrill of this well to a third party that has subsequently redrilled this well and plugged and abandoned it.

On September 12th, Aspen recompleted its Emigh No. 3-1 in the H&T sand, a formation that has not previously produced appreciable amounts of gas in the Denverton Creek gas field. After nearly one month of production, this zone is flowing 500 MCFPD. This is significant to further field development because several of Aspen's other operated wells have a thicker H&T zone behind pipe than the Emigh No. 3-1.

In early October, Aspen will spud its Emigh No. 35-3 well, located in a structurally favorable position to encounter the Petersen and Starkey formations. Results of this test should be available in the near future.

Aspen has participated in seven productive gas wells out of nine attempts (78% success rate) in the Denverton Creek gas field, located in Solano County, California. Several excellent pay zones exist behind pipe in all of the producing wells. Aspen is the operator of five of the wells in this field and has working interests ranging from 23.55% to 27.55% in these wells.

Aspen has an 11.9% working interest in the Cygnus No. 1, the other non-operated well in this field. The wells in this field have produced over 6.5 BCF (billion cubic feet) of high-quality natural gas (1084 BTU) and are currently flowing approximately 7,200 MCFPD. Gas prices for October 2000 are approximately $5.50 per MMBTU. Aspen has acquired 3-D seismic data over its leasehold and has identified several additional drilling locations.

In June 2000 Aspen drilled and completed its fifth successful gas well out of six attempts (83% success rate) near its Malton Black Butte gas field production. This well, the Gay No. 12-1, was drilled to a depth of 4,050 feet and completed in multiple Forbes intervals. Gas sales commenced in late June 2000 and the well is currently flowing 450 MCFPD.

Aspen purchased six producing gas wells in this area effective June 30, 1998. A 3-D seismic survey was acquired over Aspen's 1,275-acre leasehold, which resulted in several promising drilling locations. The five successful wells are currently producing approximately 4,000 MCFPD (gross) of high-quality (1011 BTU) gas. The first three new wells have been flowing for over a year.

The producing intervals range in depth from 1,900 feet to 4,500 feet. Aspen has working interests in these wells ranging from 7.5% to 28.5%. These discoveries are significant to Aspen because they have further diversified the source of Aspen's cash flow.

In August 2000, Aspen drilled, evaluated and plugged and abandoned the Vega No. 4 well, located in the Sherman Island gas field, Sacramento County, California.

Aspen was started in 1980 and its stock is quoted on the OTC Bulletin Board under the symbol ASPN and the web site is www.aspnx.com. For more information contact Bob Cohan in Aspen's Bakersfield office at 661/831-4669.

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.