Vast Exploration Provides Operations and Corporate Update
Vast Exploration Inc. (“Vast” or the “Company”) (TSX VENTURE: VST) is pleased to provide the following update on its operations and strategic initiatives.
The Company’s principal assets are concentrated in the Boyer Area (“Boyer”) of northern Alberta and the Barrhead Area (“Barrhead”) of central Alberta. Currently, Vast has combined net production from these properties of 190 mcfd (32 boepd).
BOYER – Alberta
Vast is the Operator at Boyer with a working interest of 37.5% in approximately 25,000 gross acres of land. Natural gas production from this property is derived from the Bluesky formation.
In 2006 and 2007, Vast drilled a total of twenty five (25) wells on the property. Ten (10) wells are currently on production at a combined average rate of 425 mcfd (net 155 mcfd or 26 boepd). Vast is pleased to report that as of February 7, 2008 a further ten (10) wells have commenced production following the receipt of approval for a Downspacing Application from the Energy Resources Conservation Board (ERCB). The company expects to add incremental production of approximately 300 mcfd (net 110 mcfd or 18 boepd) from these wells.
During the first quarter of 2008, the Company plans to re-enter a previously drilled and produced well on a 7,138 acre block of Company land situated west of current producing properties. Vast has a 37.5% working interest in these lands. The objective of the re-entry is to determine if commercial production from the Bluesky formation can be established. The well was abandoned in 1987 producing at rates in excess of 250 mcfd. The Company believes that the well should be capable of production of 75 to 100 mcfd, similar to current rates of producing offsetting wells. If successful, four (4) additional wells on Company lands could be re-entered and re-activated. Pipeline infrastructure is in place across this block of land.
BARRHEAD – Alberta
Vast is the Operator at Barrhead with working interests ranging from 15% to 100% in four (4) producing natural gas wells. Production is derived from the Belly River formation averaging 100 mcfd (net 35 mcfd or 6 boepd) in December 2007.
The Company does not plan to undertake any exploration activities on this property in the near term.
Saskatchewan
The Company has a Joint Venture Agreement with Samson Oil and Gas Inc. (SOGI) that provides preferential access to Treaty Land Entitlements in the province of Saskatchewan. To date, no lands have been acquired by the Joint Venture that would provide access to mineral rights. Management is currently in the process of evaluating the potential of the Joint Venture and devising a go-forward plan for the near term. The Agreement was recently amended to focus more specifically on the south west areas of the province of Saskachewan. The Company remains optimistic for future shareholder growth in this area.
International Opportunities
The Board of Directors has mandated management to evaluate possible acquisitions that would represent high impact exploration and production opportunities and that offer significant upside and shareholder value. Accordingly, the Company has been pursuing and negotiating opportunities in highly prospective hydrocarbon basins internationally.
Mr. Stan Bharti, Chairman of the Board of Directors, commented “given the current market dynamics, we see significant growth opportunities in the international arena. We are very excited at the prospect of exploring in proven hydrocarbon regions, which can provide considerable long-term growth for our shareholders.”
About Vast Exploration Inc.
Vast Exploration is a junior Canadian oil and gas company actively pursuing the exploration and development of crude oil and natural gas opportunities.
The use of the term “BOEs” may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Forward-looking Information
Statements in this release that are not historical facts are “forward-looking information” within the meaning of applicable securities law. Forward-looking information typically contain words such as “anticipate”, “plan”, “expect”, “potential”, or similar words suggesting future outcomes and include, without limitation, statements regarding the Company’s operational plans, including production estimates; expected costs and revenues; corporate strategy; the availability of acquisition opportunities. There can be no assurance that such information will prove to be accurate; actual results and future events could differ materially from such information. Factors that could cause actual results to differ materially include, among others, commodity prices, third party risks, acquisition risks, risks inherent in the oil and gas industry, licensing risks, financing risks, regulatory risks and environmental concerns. Investors are cautioned not to place undue reliance on forward-looking information.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Vast Exploration Inc. Ahmed S. Said President & Chief Executive Officer (403) 263-3000 (403) 263-3041 (FAX) Email: info@vastexploration.com Website: www.vastexploration.com
SOURCE: Vast Exploration Inc.