Vast Exploration Inc.
TSX VENTURE : VST

Vast Exploration Inc.

October 08, 2009 12:10 ET

Vast Exploration Inc. Closes $15 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE:VST) is pleased to announce that it has closed its previously announced bought deal financing. Pursuant to the terms of the financing, the Company has issued and sold 20,000,000 special warrants of Vast at a price of $0.75 per special warrant, for aggregate gross proceeds of CAD $15,000,000 (the "Offering"). Each special warrant entitles the holder thereof to receive, subject to adjustment in certain circumstances, one common share of the Company on the exercise or deemed exercise of the special warrant. The special warrants are exercisable by the holder at any time for no additional consideration and all unexercised special warrants will be deemed to be exercised on the earlier of (a) four months and a day following the closing of the Offering, and (b) the third business day after a receipt is issued for a final prospectus by the securities regulatory authorities in each of the provinces of Canada where the special warrants were sold qualifying the common shares to be issued upon the exercise of the special warrants. The Company shall use its reasonable commercial efforts to obtain such receipt and in the event such receipt is not received in this 30 day period, each unexercised special warrant shall entitle the holder to acquire 1.1 common shares of the Company. In addition the Company shall continue to use its reasonable commercial efforts to obtain such receipt before the expiry of the four month hold period in the event the receipt for a final prospectus is not obtained within 30 days of the Closing of the Offering.

Until the receipt is issued for a final prospectus, all the special warrants, as well as the common shares issuable upon exercise thereof, will be subject to a four month hold period under applicable Canadian securities laws.

Vast intends to use the net proceeds from the Offering to further fund its commitments and exploration program on the Qara Dagh block and for general corporate purposes.

Canaccord Capital Inc. and GMP Securities L.P. (the co-lead underwriters) and Haywood Securities Inc. and Genuity Capital Markets (collectively the "Underwriters") acted as underwriters for the Offering. In consideration for their efforts, the Underwriters received a cash commission equal to $900,000 and 1,200,000 broker warrants that will entitle them to acquire an equal number of Vast common shares at a price of $0.75 per share on or before October 8, 2010.

The Offering remains subject to the receipt of all necessary approvals including, without limitation, final approval of the TSX Venture Exchange.

About Vast Exploration Inc.

Vast Exploration Inc. is an independent oil and gas company, and a partner of Niko Resources Ltd. Vast is focused on the exploration and development of its principal asset, the Qara Dagh Block, in the Kurdistan region of Iraq. The Qara Dagh Block lies on trend with existing discoveries and is located in the prolific Zagros Fold Belt of Northern Iraq which contains several large fields including the super-giant Kirkuk field.

Forward-Looking Statement Warning

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms of the PSC agreement, the planned use of proceeds, receipt of all regulatory approvals, and the likelihood and timeline for filing and obtaining a receipt for a prospectus. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such Act.

NEITHER THE 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

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