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Contact Exploration confirms repeatability of Kakwa liquids-rich Montney development with second successful well

CALGARY-- Contact Exploration' s second Contact horizontal Montney 14-30 well has been successfully completed with a 14-stage, water-based nitrogen foam frac. The well was flowed for 96 hours against anticipated gathering system pressure of approximately 1,100 psi. During the final 24 hours of flow-back, the well averaged gross production rates of 974 bopd condensate and 4,970 Mcfd gas.

An additional 4-hr flow test was subsequently conducted to provide insight into the free flowing initial deliverability of the well, against a final wellhead pressure of 360 psi, which test resulted in gross rates of 1,324 bopd condensate and 6,423 Mcfd gas, being 2,394 boepd combined. The 14-30 well was drilled ahead of schedule and under budget and completion operations have remained on budget. The successful drilling and completion of the 14-30 well confirms that Contact' s Kakwa lands are in the heart of the liquids-rich Montney trend, validating the repeatability of this prolific play.

The 14-30 Well will now be equipped for production and Contact anticipates pipeline connection to the Company' s previously built mainline to be finalized by early 2013. The 14-30 Well was designed to allow for the vertical completion and testing of an up-hole Montney target. The company is currently permitting a new well from the same surface location as 14-30, and is expecting to spud this well by January 2013.

Contact has also acquired at recent Crown land sales, an additional eight 100% working interest sections. These newly acquired lands are on trend with and nearby the Company' s original Kakwa sixteen section block that it operates at a 25% working interest.

Furthermore, Contact and its partners have acquired ¾ of a section immediately adjacent to the section upon which the 14-30 well was drilled. With these acquisitions, Contact has added a total of 8.18 net sections of prospective Montney acreage for an average cost of less than $200 per hectare, such that the company now holds 12.18 net sections prospective for Montney development.



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