Contact Exploration Continues Success With Kakwa Liquids-Rich Montney Development

Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is
pleased to announce that the fourth Contact-operated horizontal Montney well at
5-23-63-6 W6 (the "5-23 Well") (Contact 25% working interest) has been
successfully completed and tested. The well was flow-tested for approximately
170 hours. During the final 24 hours of flow-back the well produced against
anticipated gathering system pressure of approximately 2,000 kPa and averaged
gross production rates of 1,433 boe/d consisting of 815 bbl/d condensate and
3,704 mscf/d natural gas (204 bbl/d and 920 mscf/d, or 358 boe/d combined, net
to Contact).


The 5-23 Well continues to demonstrate a high ratio of condensate to natural gas
production from the Kakwa Montney play, flowing at an average 195 bbls of
condensate/mmscf during the entire test. The total drill depth of the 5-23 Well
was approximately 70 to 100 meters vertically deeper and two miles further west
than any other Contact-operated Kakwa well. The confirmation of liquids-rich gas
prospectivity in the Middle Montney further to the west on Contact's East Kakwa
lands extends the scope and magnitude of the Company's East Kakwa project.


The Company advises that although the initial rates from the 5-23 Well are very
encouraging, production test results are not necessarily indicative of long-term
performance or of ultimate recovery from the 5-23 Well. Going forward, Contact
plans to release 30 day initial production rates from additional wells drilled
at Kakwa, the results of which are expected to be more reflective of longer term
performance.


Facilities and pipeline work will begin immediately to provide for tie-in of
production from the 5-23 Well into Company-operated infrastructure, including
the 16-7-63-5 W6M compressor station and condensate stabilization facility
("16-7 Facility"). Construction of the 16-7 Facility continues on schedule for
facility start-up in December 2013.  


Contact continues to make improvements to the design of its operated wells at
Kakwa. The Company's fifth operated Kakwa well at 16-25-63-5 W6M ("16-25 Well")
was spud on September 10, 2013 and reached a total depth of 4,680 meters after
33.5 days of drilling, representing a 25% reduction in drilling time from other
Contact-operated Kakwa wells. Production casing is now being run in the 16-25
Well, with rig release expected in the very near term. Contact expects to begin
completion operations on 16-25 Well in November 2013.


Contact has entered into a one year contract with a drilling contractor,
securing a drilling rig for use in Kakwa. The Company intends to utilize this
rig to spud its next 25% working interest Montney well to drill from a surface
location at 16-8-63-5 W6M with a bottom hole location at 16-17-63-5 W6M in
November 2013.


About Contact Exploration Inc.

Contact Exploration Inc. is a public oil and gas company which has a long-term
history of operating in Atlantic Canada and has recently demonstrated success in
Alberta's liquids-rich Montney Formation tight gas play. For more information,
please see the Company's website: www.contactexp.com.


ADVISORY ON USE OF "BOEs": "BOEs" may be misleading, particularly if used in
isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to
one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.


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", "continue", "estimate",
"may", "will", "should", "believe", "plans", "cautions" and similar expressions
are intended to identify forward-looking information or statements. In
particular, but without limiting the foregoing, this press release contains
statements concerning the Company announcing 30 day production test results on
future Kakwa wells, such tests being reflective of future performance of the
applicable wells, timing for start-up of the 16-7 Facility and the tie-in of the
5-23 Well, the timing for rig release and completion operations on the 16-25
Well and the timing of drilling Contact's first well with the new drilling rig,
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 Deep Basin Montney project, the 5-23 Well and the
16-25 Well 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; that the results of the 24 hour production test will be
indicative of the long-term performance of the 5-23 Well or of ultimate recovery
from the well; the ultimate size and scope of any hydrocarbon bearing formations
at the Deep Basin Montney project; that additional drilling operations in the
Deep Basin Montney project, including at the 5-23 Well and the 16-25 Well, will
be successful such that further development activities in this area is
warranted; that Contact's efforts to raise additional capital will be
successful; that the new drilling rig will spud in November 2013; that the 16-7
Facility will be completed for start-up in December 2013; 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, 2013. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Contact Exploration Inc.
Steve Harding
President and CEO
(403) 771-1091
(403) 695-3915 (FAX)
sharding@contactexp.com
www.contactexp.com
Contact Exploration Inc. (TSXV:CEX)
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