NEWS RELEASE

, 2008 from the New Brunswick Department of Natural

Resources to drill Contact Stoney Creek N-78-2328. This vertical well, once drilled, will have a

suite of modern wireline logs over the entire interval as well as selected core samples taken from

the zone of interest. The acquisition of modern data from the Stoney Creek Field via this

wellbore will enable Contact to further verify the reservoir properties of the field. The Stoney

Creek N-78-2328 location was chosen in a high pressure section of the field offsetting some of

the most productive wells in Stoney Creek. Upon completion of the well, a stimulation treatment

using hydraulic fracturing is planned.

As a result of a recent study conducted by the University of New Brunswick, it has been

determined that a hydraulic fracture treatment is the most efficient method of exploiting the

reserves in the Stoney Creek Field. Drilling this development well and performing a fracturing

treatment should enable Contact to optimize future development and infill drilling in the field to

maximize production from the reservoir. If this method proves to be more efficient for

enhanced production of the oil reservoir, the same method can be utilized for the production of

gas from the gas bearing zones in Stoney Creek. The depth of the well will allow penetration

through the existing reservoirs and investigation of any conventional or unconventional potential

beneath the currently defined targets.

“We have been producing oil from the Stoney Creek field for over a year, and have a better

understanding of the reservoir’s behaviour through production” stated Darcy Spady, President

and CEO. “Using production data, combined with the excellent research conducted at the

University of New Brunswick by Dr. Laura Romero-Zerón and Mr. Mark Bacon, Master of

Science Candidate, we can better understand how to effectively deal with this unique

hydrocarbon deposit and optimize our recovery techniques.”