Contact Announces Initial Results at Hopewell and Releases Results for First Quarter 2011

(TSX-V:CEX)

CALGARY, Sept. 29, 2011 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to report the initial results from its vertical Hopewell Prospect well drilled in New Brunswick.  Well data obtained from logging and the cutting of sidewall cores has been incorporated into a petrophysical assessment, which confirms the significant presence of hydrocarbons (oil).

The 94% working interest Hopewell B55 well ("B55 Well") was designed to confirm the quality and test the lower Hiram Brook Member of the Albert Formation, the same interval that has produced nearly 1MMbbls of sweet light crude from the Company's Stoney Creek Oil Field (based on public data published by the Government of New Brunswick).  The B55 Well resides on an independent structure approximately 10km south of the Stoney Creek Oil Field.  The B55 Well was drilled to 1,110m measured depth, with 981m total vertical depth drilled in less than four days, far exceeding timing expectations.

After reaching total depth, extensive logging (gamma, di-pole shear sonic, compensated neutron lithology density and high resolution laterlog array resistivity logs) and side-wall coring programs were completed to better define the quality of the formation.  The high-resolution logs and petrophysical assessment over the prospective formation have helped qualify the initial cuttings and core observations, both of which displayed oil saturated sandstone with extensive light oil streaming from samples.  After collection of logs and side wall cores, Contact has set casing in place in preparation for future completions that will test the productivity of the reservoir.

A total oil column of at least 100m with an aggregate 40m of oil-bearing sands was confirmed by gas response while drilling, heavily oil-stained drill cuttings and side wall cores, as well as from the petrophysical analysis of the entire log suite.  Within the sandstone intervals, the petrophysical analysis has confirmed that a total of 18m of hydrocarbon bearing formation was encountered, with an average effective porosity ranging between 6 and 15%, and a low water saturation of 25%.  The largest single over-thickened sandstone package was 30m thick, with 13m of hydrocarbon-containing sands averaging 9% porosity.  Contact believes that this single sandstone interval represents an excellent candidate for future horizontal development, in addition to the opportunities available in the balance of the formation.

Contact's technical team is working to define overall potential, geometry and total oil in place, and using existing seismic and offsetting well control estimates the structure to be a minimum of 1,000 acres in extent. Contact holds all prospective lands surrounding this well, encompassing the entire Hopewell structure at working interests between 94%-100%.

Contact intends to fully evaluate the side wall core data that it will receive in the upcoming weeks prior to finalizing a completion strategy to test the production from the B55 Well

Contact believes that the B55 Well results may complement the ongoing success achieved by the Company in New Brunswick at Stoney Creek, from which Contact continues to produce over 100bbl/d of oil at $70/bbl netback.

Contact also announces that it has today filed its unaudited Condensed Interim Consolidated Financial Statements for the three month period ended June 30, 2011 and the related Management's Discussion and Analysis on www.sedar.com.

About Contact Exploration Inc.

Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.

ADVISORY ON FORWARD LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the forgoing, this press release contains statements concerning the timing and scope of exploration and development activities on the Company's properties in the Hopewell prospect area of New Brunswick, the prospectivity of such lands and petroleum and natural gas reserves and production that may be encountered through the exploration of such properties and future results from operations, the ultimate size and scope of the hydrocarbon bearing formation discovered at Hopewell and the timing of the future development of the Hopewell prospect through horizontal drilling, among others

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Contact which have been used to develop such statements and information but which may prove to be incorrect. Although Contact believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Contact can give no assurance that they will prove to be correct.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities respecting the Hopewell prospect will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations at Hopewell; that additional drilling operations in Hopewell will be successful such that further development activities in these areas are warranted; that Contact will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the accuracy of the estimates of Contact's reserve volumes; the general stability of the economic and political environment in which Contact operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Contact to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Contact operates; and the ability of Contact to successfully market its oil and natural gas products.

Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Contact or by third party operators of Contact's properties, increased debt levels or debt service requirements; inaccurate estimation of Contact's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Contact's public disclosure documents.  Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's Management Discussion and Analysis prepared for the year ended March 31, 2011.  The reader is cautioned not to place undue reliance on this forward-looking information. The forward looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Contact Exploration Inc.

For further information:

Steve Harding 
President and CEO
Contact Exploration Inc.
Phone: (403) 771-1091
Fax: (403) 695-3915
Email: sharding@contactexp.com
www.contactexp.com

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