CALGARY, ALBERTA--(Marketwire - Sept. 6, 2011) - Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is pleased to report it has entered into an oil and gas project in the highly prolific Deep Basin region of Alberta, initiating a new core area for the Company. Contact has signed an agreement with another oil and gas producer, whereby Contact pays a land equalization amount and commits to participate in the drilling of a Contact-operated well. By securing a low cost of entry, Contact believes the transaction represents an extremely attractive opportunity towards the development of a productive and highly economic new core area in Western Canada.

In New Brunswick, Contact also continues to see excellent growth potential, confirmed by strong oil production rates and netbacks from the 2 horizontal wells drilled in the Stoney Creek Field (100% Contact) in late 2010. Production optimization activities have proven effective, helping to confirm strong reservoir quality and performance. Natural decline has flattened within both wells, with aggregate Stoney Creek production continuing above 100 bbls/d and realizing netbacks of approximately $70/bbl. In addition, drilling plans have been finalized for Contact's newly-defined oil prospect ("Hopewell"), located in the Edgett's Landing area of New Brunswick. The Hopewell well (94% working interest) will test a new pool believed to be hydrocarbon-bearing which, if successful, could open up a new hydrocarbon fairway for Contact. Extensive production testing of a well flanking the seismically-defined Hopewell structure has demonstrated good light oil production, with significant opportunity existing to move up-structure with additional wells. The Hopewell drilling lease has been built and the well is expected to be spud in mid-September.

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