Vast Sells 12% Interest in the Qara Dagh Block to Niko Resources and Retains 25% Interest. Funds to Be Used to Deepen the Current Well. Appoints Sig Slotboom as President and CEO
CALGARY, ALBERTA--(Marketwire - Aug. 15, 2011) - Vast Exploration Inc.("Vast" or the "Company") (TSX VENTURE:VST) announces that it has entered into a purchase and sale agreement to sell 12% of the Company's interest in the Qara Dagh Block in the Kurdistan region of Iraq to Niko Resources (Kurdistan) Ltd. ("Niko") for consideration of US$9,000,000. The funds will be used by Vast to pay for outstanding amounts to Niko under a joint operating agreement as well as to fund future expenses related to the deepening of the Qara Dagh well to 4,150 meters. Vast plans to host a conference call at 11:00 AM (EST) on Tuesday, August 16, 2011 to discuss the sale of the Company's 12% interest in the Qara Dagh Block. To participate in the call please dial:
| Conference Call Dial-In Information |
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| Date: | Tuesday, 16 August 2011 |
| Time: | 11:00 AM EST |
| International Callers: | +1 416 340 8018 |
| Toll Free: | 1 866 223 7781 |
| Local Callers: | 416 340 8018 |
Mr. Ahmed Said, commented, "We are excited to have reached an agreement with our partners to deepen the current well by 250 meters. This is the first exploration well on the block, and it has thus far confirmed the presence of an active hydrocarbon system. The deepening program will target additional reservoir quality formations in the Cretacous, and we remain optimistic of the potential for a commercial discovery".
The deepening of the Qara Dagh well has recently been approved by the consortium partners, and the well is expected to be completed, including any potential testing of the lower zones, by early October 2011. All the production testing in the upper zones have been completed and there were no commercial rates achieved.
The purchase and sale agreement with Niko remains subject to the receipt of all required approvals from the Kurdistan Regional Government of Iraq and if necessary, the approval of the TSX Venture Exchange.
The Company is also pleased to announce that Mr. Sig Slotboom has been appointed President and Chief Executive Officer of Vast. Mr. Slotboom will succeed Mr. Ahmed Said, who will continue to serve as an executive consultant to the Company and remain on the board of directors of Vast.
General Jay Garner, commented, "We would like to thank Mr. Said for his services during his term as President and CEO. We are very excited to welcome Mr. Slotboom as the new President and Chief Executive Officer of Vast. The breadth and depth of Sig's international experience will be of tremendous value to Vast's objectives and its operations in Kurdistan."
Sig Slotboom is a Petroleum Engineer with over 30 years of diversified technical and management experience in the upstream oil and gas industry. Mr. Slotboom started his career at Exxon/Imperial where he had a wide range of technical and business development roles, including a foreign assignment in Norway to develop a major offshore gas-condensate field. He has valuable experience in Iraq gained in the mid 90's with Chauvco Resources where he played a major role in leading the evaluation and negotiation of several exploration and development/EOR projects. Recently, he has held the position of Vice President Operations with Vast. In connection with his appointment, Mr. Slotbloom has been granted 200,000 stock options to purchase the same number of common shares of the Company at a price of
.16 per option exercised. The stock options, and any shares issued on exercise thereof, will be subject to a four month statutory hold period.