CEX Contact Exploration Inc.

Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is
pleased to provide an operations update on its activities in the Kakwa area of
Alberta. 


Operated Activities

Contact holds a 25% working interest in all Montney wells and associated
facilities on a 16 3/4 section block in the Kakwa, Alberta area, other than in
the 13-17-63-5W6 Well ("13-17 Well") in which the Company's working interest is
37.5% before payout, 25% after payout. Contact is the operator of all wells and
facilities on this 16 3/4 section block.


The central compression and condensate stabilization facility located at
16-7-63-5W6 ("16-7 Facility") has now been fully constructed and commissioned.
The 16-7 Facility will be used to compress natural gas from the Contact-operated
Kakwa area wells for transportation to a third party gas plant, as well as to
stabilize and store condensate prior to trucking liquids to sales off-take
facilities. Over the past two weeks the 16-7 Facility has demonstrated the
ability to receive up to 14mmcf/d of natural gas production and associated
condensate production. The commissioning of the 16-7 Facility extended from
mid-December 2013 to mid-January 2014. Contact's December 2013 Kakwa production
was thereby restricted due to additional downtime of the Kakwa wells while the
16-7 Facility underwent commissioning.


The Contact operated wells at 13-17-63-5W6, 14- 30 -63-5W6, 3-19-63-5W6 and
5-23-63-6W6 are currently flowing through the 16-7 Facility at aggregate gross
production rates of up to 8mmcf/d natural gas and 1,200bbl/d condensate (2mmcf/d
and 300bbl/d net to Contact). This flush production rate is expected to decline
as production continues, in keeping with normal production declines. However,
Contact anticipates that production from wells currently being drilled,
completed or tied-in at Kakwa will continue to increase the Company's overall
production levels.


Contact recently completed and production tested the 16-25-63-5W6 Montney well
("16-25 Well"). During a short production test, the 16-25 Well demonstrated
initial deliverability and condensate yields consistent with the Company's other
operated wells at Kakwa. Contact notes that the results from production testing
are not necessarily indicative of the long term performance or of the ultimate
recovery from the 16-25 Well. The 16-25 Well is now being equipped to produce
into the 16-7 Facility and Contact expects this well to be brought onto
production in early February 2014.


Contact has completed drilling of the 16-17-63-5W6 Montney well ("16-17 Well")
to a total depth of 5,191m. The 16-17 Well was drilled from the same pad as
Contact's first Kakwa Montney well at 13-17. Drilling operations were carried
out on time and on budget, taking 42 days from spud to rig release. Completion
operations are underway on the 16-17 Well and Contact expects to undertake
production testing of the well in late January 2014. With success, the 16-17
Well will be equipped for production into the 16-7 Facility, with production
expected to commence in mid-February 2014.


Also at Kakwa, Contact is currently drilling a Montney well at 15- 30 -63-5W6
("15-30 Well"), the first of two back-to-back wells expected to be drilled by
the Company from the drilling pad at 3- 30 -63-5W6. The 15-30 Well was spud on
December 31, 2013 and is expected to take approximately 45 days to reach total
depth. Upon casing the 15-30 Well, Contact intends to immediately spud an
additional well from the 3-30 pad ("02/14-30 Well"), with spudding expected to
occur in February 2014. The 02/14-30 Well is being designed to penetrate the
Upper Montney D4 interval. Contact expects to complete both the 15-30 Well and
the 02/14-30 Well upon concluding drilling operations on the 02/14-30 Well.
Contact anticipates drilling and completion operations on the 15-30 Well and the
02/14-30 Well to be finalized in April 2014 and, with success, expects both
wells to be equipped and flowing into the 16-7 Facility in May 2014.


As previously announced Contact intends to employ one rig year round at Kakwa.
The Company is currently permitting a new multi-well pad at 7-19-63-5W6 to
facilitate the drilling of two long-reach (approximately 1.5 mile) horizontal
wells between April and July 2014. The Company expects to complete these wells
consecutively once the second well has finished drilling. 


Non-Operated Activities

Adjoining the 16 3/4 section block discussed above, Contact holds a 23.75%
working interest in two non-operated sections at Kakwa. The Company participated
in the drilling of one Montney well on these lands, at 14-2-63-6W6 ("14-2
Well"). The 14-2 Well was placed into production in September 2013 but was shut
in for substantially all of November and December 2013 due to the operator's
infrastructure restrictions. The participants in the 14-2 Well met in late 2013
to discuss production strategies, and the operator agreed to re-commence
production at restricted but stable rates. The 14-2 Well re-commenced production
on January 7, 2014 as part of establishing a longer term performance profile,
and determining an optimum go-forward production strategy, for the well.


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 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 forgoing, this press release contains
statements concerning expected production declines from existing wells, and
production additions from new wells, at Kakwa; the timing for the 16-25 Well to
be brought onto production; the timing to test, equip and bring onto production
the 16-17 Well; the timing to drill the 15-30 Well to total depth, the timing to
spud the 02/14-30 Well and the timing to complete, equip and bring both such
wells onto production; and the timing to drill and complete two long-reach
horizontal wells off a pad at 7-19-63-5W6. 


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 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 the Deep Basin Montney project;
that additional drilling and completion operations in the Deep Basin Montney
project will be successful such that further development activities in this area
is 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, 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

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