Vast Exploration Inc.
TSX VENTURE : VST

Vast Exploration Inc.

May 09, 2011 08:43 ET

Vast Exploration Inc.-Provides Operational and Corporate Update

CALGARY, ALBERTA--(Marketwire - May 9, 2011) - Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE:VST) is pleased to provide the following update on the Niko Resources Ltd. ("Niko Resources") operated Qara Dagh Block in the Kurdistan Region of Iraq.

Qara Dagh-1 Well

As previously reported, the well has been cased to a depth of 3,558 meters where a 7 inch liner has been successfully set to this depth. The company is pleased to report that drilling operations have resumed. The company expects that drilling and testing results will be available by the end of June or early July 2011.

Extension of Exploration Period

Also as previously reported, the operator, Niko Resources, on behalf of the consortium partners, has applied to the Kurdistan Regional Government for a one year extension to the first exploration sub-period of the Production Sharing Contract which is progressing and we are awaiting formal approval notification.

First KRG Oil Export Payments

The company is pleased to report on the positive developments where Kurdish Regional Government (KRG) has confirmed the release of the first oil export payments to KRG contractors. The payment is part of the recent interim agreement on revenue distribution reached by the KRG with the federal Prime Minister Nuri al Maliki and the federal Ministers or Finance and Oil. This arrangement allowed for the resumption of oil exports from newly discovered fields in Kurdistan where oil is marketed by the State Oil Marketing Organization (SOMO) with a percentage of the revenues going via the KRG to the contractors to pay for exploration & development costs.

Mr. Ahmed Said, President and CEO, commented "we are very pleased with these positive developments which should help pave the way for finalizing the federal oil and gas legislation and provide clear guidelines to the industry".

About Vast Exploration

Vast Exploration Inc. is an independent oil and gas company. Vast is focused on the exploration and development of its principal asset, the Qara Dagh Block, in the Kurdistan region of Iraq, where it holds a net undivided 37% working interest in the block. 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.

Regulatory Statements

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 prospective nature of the Block, the drilling program and revised timeline for completion, exploration and development plans and projected expenses and timetable, and relationships with other companies who hold an interest in the Qara Dagh block. 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. For a description of some of such risks, please see the Company's annual information form filed under the profile of the Company on SEDAR. 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.

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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