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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3"><B>UNITED STATES<BR>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></FONT> </P>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Washington,
D.C. 20549</B></FONT></FONT> </P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3"><B>FORM 8-K</B></FONT></FONT></P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3"><B>CURRENT
REPORT</B></FONT></FONT></P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</FONT></FONT> </P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Date of
Report (Date of earliest event reported): February 13, 2007</B><BR></FONT></FONT> </P>



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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="6"><B>Aspen
Exploration Corporation</B></FONT><BR><FONT SIZE="2">(Name of small business as specified in its charter)</FONT></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 align=center>
    <TR vAlign=bottom>
    <TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
    <TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
    <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
  size=2></FONT></TH></TR>
  <TR vAlign=bottom>
    <TD align=left width="37%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Delaware</B></FONT></TD>
    <TD align=left width="4%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="30%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>0-9494</B></FONT></TD>
    <TD align=left width="4%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="23%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;<B>84-0811316</B></FONT></TD>
    <TD align=left width="2%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>(State or
      other jurisdiction</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>(Commission File Number)</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>(I.R.S.
      Employer</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;of
      incorporation)</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
size=2></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Identification Number)</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR></TABLE>

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<A NAME="A001"></A>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B><U>2050 S. Oneida St., Suite 208, Denver, CO 80224-2426</U></B><BR>
(Address of
principal executive offices) (Zip Code)</FONT></FONT></P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Telephone number, including Area code <B>(303) 639-9860</B></FONT></FONT> </P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Not
applicable </B><BR>Former name or former address if changed since last report</FONT></FONT> </P>

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<A NAME="A013"></A>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Item
1.01 &#150; Entry Into a Material Definitive Agreement</B></FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 13, 2007, Aspen Exploration Corporation entered into a participation
agreement with Nautilus Poplar, LLC by which Aspen agreed to and did purchase a
working interest in certain oil producing assets that Nautilus, on the same day,
acquired from Ballard Petroleum Holdings, LLC. Neither Nautilus nor Ballard are
affiliates of, or otherwise related to, Aspen. The assets acquired include about
22,600 acres located within the East Poplar Unit and Northwest Poplar Field in
Roosevelt County, Montana (the &#147;Poplar Field&#148;). As a result of the
purchase by Nautilus, an affiliate, Nautilus Technical Group, LLC of Denver, CO,
will be the operator of the field pursuant to a joint operating agreement.</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 13, 2007 (but effective as of January 1, 2007), Nautilus acquired an
average of approximately a 95% working interest in a large number of oil and gas
leases, 38 producing oil wells, and production and storage facilities in the
Poplar Field. The purchase price paid to Ballard for the transaction was $11.1
million, and Aspen&#146;s share of the purchase price was $1,387,500 (being
12.5% of the purchase price). The average net revenue interest that Nautilus
acquired is greater than 80%.</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aspen&#146;s
interest in revenues from the Poplar Field will remain at 12.5% of the total
interest acquired by Nautilus (about a 10% net revenue interest based on an
average 80% NRI) until Aspen receives a return of 110% of its investment.
Thereafter, Aspen&#146;s interest will be reduced to 10% of that acquired by
Nautilus (approximately an 8.0% net revenue interest to Aspen).</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the acquisition of the Poplar Field by Nautilus from Ballard, Nautilus conveyed
a 12.5% working interest in the assets it acquired to Aspen. Aspen paid 12.5% of
the costs of the acquisition (approximately $53,750 to Aspen&#146;s interest) as
well as the purchase price, and will be responsible for 12.5% of further
expenditures attributable to the interests acquired. Aspen used its cash on
hand, proceeds of a bank loan that Aspen acquired, and proceeds from the sale of
investment securities that Aspen owned. Aspen paid a portion of the purchase
price ($375,000 to Aspen&#146;s interest) by agreeing to be responsible for
12.5% of a $3,000,000 loan obtained by Nautilus in connection with the purchase.</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Poplar Field underlies approximately 22,600 net acres which have 3-D seismic
data coverage. About 67% of the acreage is within the Fort Peck Reservation or
on neighboring Indian allotted lands. About 10% of the acreage is leased from
the United States Bureau of Land Management, and the remaining leases are from
private individuals (fee lands). The acquisition does include a small amount of
fee land in which Aspen has a working interest. The current production rate is
230 BOPD from 38 producing wells completed in the Heath and the Charles
&#147;A&#148;, &#147;B&#148;, and &#147;C&#148; intervals. The average net
revenue interest is greater than 80%. The crude oil is 40&deg; API sweet and is
readily marketed at the lease boundary. All produced water is disposed within
the Unit boundary.</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nautilus
has proposed, and as a condition to the acquisition of the interests Aspen
accepted, proposed workover activities during the first two quarters of 2007
aggregating in total cost to Nautilus&#146; interest $1,630,000 (approximately
$203,750 to Aspen&#146;s interest). Nautilus anticipates that there will be
other workover activities during the second half of 2007 amounting to up to an
additional $1.6 million dollars, but these have not been specified and no
approval has yet been requested. The additional 2007 workover expenses will
depend, to some extent, on the results of the activities during the first six
months of 2007. The workover activities planned for the first half of 2007
include activities intended to increase oil production and recoverable reserves
from the Poplar Field by:</FONT></FONT></P>

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     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">1. </FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Completing
2 permitted water injection wells and placing 5 currently shut-in wells back on
production.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">2.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Increasing production rates in existing producing wells.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">3.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Enhancing
the water disposal facilities in the Field.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">4.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Recompleting behind pipe zones in existing wells.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">5.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Interpreting
a 3D seismic survey over the 22,600 acres to determine the optimal placement for
infill drilling locations and potential locations for tests in other reservoirs.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nautilus
expects that work on the field enhancement will begin in March 2007.
Nautilus&#146; ability to achieve its goals is subject to risks normally
associated with oil producing activities. Many of these risks are set forth in
Aspen&#146;s most recent annual report on Form 10-KSB which are incorporated
herein by reference.</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aspen
and Nautilus believe that oil exists below the currently-producing horizons. In
the Participation Agreement, Aspen and Nautilus agreed to permit another
participant, HRC Partners, and affiliate of Hunter Energy, Inc. of Denver,
Colorado, to drill the lower formations. Aspen will make a determination whether
to participate in such activities when they are presented to Aspen for
consideration.</FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aspen&#146;s
oil and gas activities have most-recently been centered around gas exploration
in northern California. Aspen&#146;s participation in this acquisition will
provide Aspen with diversification into long-lived oil reserves exhibiting a low
decline rate, a potential decrease in depreciation, depletion and amortization
expense, and a potential increase in Aspen&#146;s net proved reserves of about
50% (based on Aspen&#146;s preliminary review of the information presented by
Nautilus).</FONT></FONT></P>

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<A NAME="A014"></A>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Item 2.01
Completion of Acquisition or Disposition of Assets</B></FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
this acquisition did not involve more than 10% of Aspen&#146;s assets (as
reflected by the balance sheet included with Aspen&#146;s most recent quarterly
report on Form 10-QSB) and is not itself a business, this item is not applicable
and Aspen does not believe that the financial statements required by Item 9.01
are required to be presented.</FONT></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<A NAME="A015"></A>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Item 9.01
Financial Statements and Exhibits</B></FONT></FONT></P>

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<A NAME="A016"></A>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Exhibits</FONT></FONT></P>

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<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="6%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">10.1 </FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="91%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Participation
Agreement between Aspen Exploration Corporation and Nautilus  Poplar, LLC </FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="6%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">99.1 </FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="91%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Press
release dated February 13, 2007.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

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<A NAME="A017"></A>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>SIGNATURES</B></FONT></FONT></P>

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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on the 13th day of February 2007.</FONT></FONT></P>

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<A NAME="A018"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%">&nbsp;</TD>
     <TD><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Aspen
Exploration Corporation</B></FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>

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     <TD WIDTH="50%">&nbsp;</TD>
     <TD><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">By:<U>/s/ &nbsp;&nbsp;&nbsp;Robert A. Cohan</U><BR>Robert A. Cohan, Chief
Executive Officer and <BR>Chief Financial Officer</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>




</BODY>
</HTML>
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{"company-data": {"conformed-name": "ASPEN EXPLORATION CORP", "cik": "0000319458", "assigned-sic": "1311", "irs-number": "840811316", "state-of-incorporation": "DE", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-09494", "film-number": "07631901"}, "business-address": {"street1": "2050 S. ONEIDA STREET", "street2": "SUITE 208", "city": "DENVER", "state": "CO", "zip": "80224", "phone": "303-639-9860"}, "mail-address": {"street1": "2050 S. ONEIDA STREET", "street2": "SUITE 208", "city": "DENVER", "state": "CO", "zip": "80224"}}
AutoCoded Document
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): February 13, 2007
Aspen
Exploration Corporation
(Name of small business as specified in its charter)
Delaware
0-9494
84-0811316
(State or
      other jurisdiction
(Commission File Number)
(I.R.S.
      Employer
of
      incorporation)
Identification Number)
2050 S. Oneida St., Suite 208, Denver, CO 80224-2426
(Address of
principal executive offices) (Zip Code)
Telephone number, including Area code
(303) 639-9860
Not
applicable
Former name or former address if changed since last report
Item
1.01 – Entry Into a Material Definitive Agreement
On
February 13, 2007, Aspen Exploration Corporation entered into a participation
agreement with Nautilus Poplar, LLC by which Aspen agreed to and did purchase a
working interest in certain oil producing assets that Nautilus, on the same day,
acquired from Ballard Petroleum Holdings, LLC. Neither Nautilus nor Ballard are
affiliates of, or otherwise related to, Aspen. The assets acquired include about
22,600 acres located within the East Poplar Unit and Northwest Poplar Field in
Roosevelt County, Montana (the "Poplar Field"). As a result of the
purchase by Nautilus, an affiliate, Nautilus Technical Group, LLC of Denver, CO,
will be the operator of the field pursuant to a joint operating agreement.
On
February 13, 2007 (but effective as of January 1, 2007), Nautilus acquired an
average of approximately a 95% working interest in a large number of oil and gas
leases, 38 producing oil wells, and production and storage facilities in the
Poplar Field. The purchase price paid to Ballard for the transaction was $11.1
million, and Aspen's share of the purchase price was $1,387,500 (being
12.5% of the purchase price). The average net revenue interest that Nautilus
acquired is greater than 80%.
Aspen's
interest in revenues from the Poplar Field will remain at 12.5% of the total
interest acquired by Nautilus (about a 10% net revenue interest based on an
average 80% NRI) until Aspen receives a return of 110% of its investment.
Thereafter, Aspen's interest will be reduced to 10% of that acquired by
Nautilus (approximately an 8.0% net revenue interest to Aspen).
Upon
the acquisition of the Poplar Field by Nautilus from Ballard, Nautilus conveyed
a 12.5% working interest in the assets it acquired to Aspen. Aspen paid 12.5% of
the costs of the acquisition (approximately $53,750 to Aspen's interest) as
well as the purchase price, and will be responsible for 12.5% of further
expenditures attributable to the interests acquired. Aspen used its cash on
hand, proceeds of a bank loan that Aspen acquired, and proceeds from the sale of
investment securities that Aspen owned. Aspen paid a portion of the purchase
price ($375,000 to Aspen's interest) by agreeing to be responsible for
12.5% of a $3,000,000 loan obtained by Nautilus in connection with the purchase.
The
Poplar Field underlies approximately 22,600 net acres which have 3-D seismic
data coverage. About 67% of the acreage is within the Fort Peck Reservation or
on neighboring Indian allotted lands. About 10% of the acreage is leased from
the United States Bureau of Land Management, and the remaining leases are from
private individuals (fee lands). The acquisition does include a small amount of
fee land in which Aspen has a working interest. The current production rate is
230 BOPD from 38 producing wells completed in the Heath and the Charles
"A", "B", and "C" intervals. The average net
revenue interest is greater than 80%. The crude oil is 40° API sweet and is
readily marketed at the lease boundary. All produced water is disposed within
the Unit boundary.
Nautilus
has proposed, and as a condition to the acquisition of the interests Aspen
accepted, proposed workover activities during the first two quarters of 2007
aggregating in total cost to Nautilus' interest $1,630,000 (approximately
$203,750 to Aspen's interest). Nautilus anticipates that there will be
other workover activities during the second half of 2007 amounting to up to an
additional $1.6 million dollars, but these have not been specified and no
approval has yet been requested. The additional 2007 workover expenses will
depend, to some extent, on the results of the activities during the first six
months of 2007. The workover activities planned for the first half of 2007
include activities intended to increase oil production and recoverable reserves
from the Poplar Field by:
1.
Completing
2 permitted water injection wells and placing 5 currently shut-in wells back on
production.
2.
Increasing production rates in existing producing wells.
3.
Enhancing
the water disposal facilities in the Field.
4.
Recompleting behind pipe zones in existing wells.
5.
Interpreting
a 3D seismic survey over the 22,600 acres to determine the optimal placement for
infill drilling locations and potential locations for tests in other reservoirs.
Nautilus
expects that work on the field enhancement will begin in March 2007.
Nautilus' ability to achieve its goals is subject to risks normally
associated with oil producing activities. Many of these risks are set forth in
Aspen's most recent annual report on Form 10-KSB which are incorporated
herein by reference.
Aspen
and Nautilus believe that oil exists below the currently-producing horizons. In
the Participation Agreement, Aspen and Nautilus agreed to permit another
participant, HRC Partners, and affiliate of Hunter Energy, Inc. of Denver,
Colorado, to drill the lower formations. Aspen will make a determination whether
to participate in such activities when they are presented to Aspen for
consideration.
Aspen's
oil and gas activities have most-recently been centered around gas exploration
in northern California. Aspen's participation in this acquisition will
provide Aspen with diversification into long-lived oil reserves exhibiting a low
decline rate, a potential decrease in depreciation, depletion and amortization
expense, and a potential increase in Aspen's net proved reserves of about
50% (based on Aspen's preliminary review of the information presented by
Nautilus).
Item 2.01
Completion of Acquisition or Disposition of Assets
Because
this acquisition did not involve more than 10% of Aspen's assets (as
reflected by the balance sheet included with Aspen's most recent quarterly
report on Form 10-QSB) and is not itself a business, this item is not applicable
and Aspen does not believe that the financial statements required by Item 9.01
are required to be presented.
Item 9.01
Financial Statements and Exhibits
(c) Exhibits
10.1
Participation
Agreement between Aspen Exploration Corporation and Nautilus  Poplar, LLC
99.1
Press
release dated February 13, 2007.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on the 13th day of February 2007.
Aspen
Exploration Corporation
By:
/s/    Robert A. Cohan
Robert A. Cohan, Chief
Executive Officer and
Chief Financial Officer