Vast Exploration Inc.

Vast Exploration Inc.

September 02, 2009 07:12 ET

Vast Exploration Acquires Additional 10% Interest in Qara Dagh Production Sharing Contract

CALGARY, ALBERTA--(Marketwire - Sept. 2, 2009) - Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE:VST) is pleased to announce that it has entered into an agreement with the Kurdistan Regional Government of Iraq (the "Government" or "KRG") to acquire an additional 10% net working interest in the Qara Dagh Production Sharing Contract (the "PSC"). As a result of the acquisition, Vast will hold an aggregate 37% net working interest in the PSC.

In consideration for the acquisition of the additional 10% net working interest, Vast has agreed to issue 60,000,000 common shares of the Company to a social fund established by the Government. The common shares shall satisfy all the obligations of Vast in relation to the capacity building payments in respect of the additional 10% net working interest.

Mr. Ahmed Said, the President and Chief Executive Officer of Vast, stated, "We are very pleased to welcome the Kurdistan Regional Government of Iraq as a significant shareholder in the Company. This acquisition also demonstrates our continuing belief in the exploration potential of the Qara Dagh Block following the completion of our initial 2-D seismic survey program. The investment community is beginning to appreciate the potential size of oil and gas resources located in the Kurdistan Region of Iraq, and we believe that this acquisition demonstrates the Government's confidence in Vast and the prospectivity of the Block"

The 10% additional net working interest to be acquired by Vast constituted one-half of the 20% net working interest that the Government could have assigned to a third party or parties under the PSC. Niko Resources Ltd. ("Niko"), Vast's partner in respect of the Qara Dagh block, has also acquired an additional 10% net working interest in the PSC. In connection with these acquisitions, Vast and Niko will be responsible to pay back to the consortium the proportionate share of petroleum costs previously incurred under the PSC in respect of these additional interests. Vast intends to obtain shareholder approval and close this transaction within 60 days. Pursuant to applicable securities laws, the transaction will be subject to shareholder approval and certain regulatory approvals, including 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 completion of the proposed acquisition, the prospective geology of the block, the terms of acquisition, the impact of the acquisition on Vast and receipt of all necessary approvals, including shareholder and regulatory approvals. 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; acquisition risks; 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.


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