Vast Exploration Inc.

Vast Exploration Inc.

August 19, 2005 11:22 ET

Vast Exploration To Exploit Manville Coal Bed Methane Opportunities At Barrhead, Alberta

CALGARY, ALBERTA--(CCNMatthews - Aug. 19, 2005) -

Amends private placement financing

VAST EXPLORATION INC. (TSX VENTURE:VST) has decided to proceed with development of its Mannville Coal Bed Methane (CBM) project in the Barrhead area of Central Alberta based upon recently released data. The resource is still in its early stages of development, however all indications are that it is attractive to move forward. Vast operates 16,000 gross (4,800 net) acres of land with Mannville CBM potential in the vicinity of the Corbett Creek pilot project owned by Trident Exploration Inc., Nexen Inc. and Red Willow Production Company.

Horizontal well technology has recently been applied to produce the gas most effectively in this area. From a sample of 12 horizontal wells adjacent to Vast lands as reported by the Alberta Energy and Utilities Board, the average initial production during the first six months of de-watering the coals is 150 thousand standard cubic feet per day of natural gas and 100 barrels per day of water. As described on their corporate website, the expectation of Nexen Inc. is that each section of land in this area will produce between 2-6 billion cubic feet of gas and average 1 billion cubic feet per well. Vast and its partners are currently preparing a budget for the remainder of 2005 and for 2006 to initiate development of the lands under their control.

Also in the Barrhead area, Vast has received proposals to farm-out conventional Mannville gas targets on Company lands. Desmerais Energy Corporation's offsetting well drilled in late 2004 to a depth of 3900' into the Banff formation continues to produce in excess of 1.7 million cubic feet per day of natural gas. The company is reviewing its options and anticipates a decision whether to participate in drilling or farm-out by month-end.

In the Haro area of northern Alberta, Vast is considering its alternatives to monetize two standing Pekisko gas wells it owns 100% in the area. The Company has 5 sections of potential gas lands and will either tie the wells into existing facilities this winter or dispose of this asset pending the outcome of ongoing negotiations.

Corporately, Vast has amended the terms of its previously announced private placement (see press release dated June 24, 2005). Under the revised terms, the Company plans to raise up to $2 million by way of a brokered private placement through the issuance of Common Shares priced at $0.40 and Flow Through Shares priced at $0.48, subject to regulatory approval. Emerging Equities Inc. is acting as agent on a commercially reasonable basis in connection with the financing. Closing is expected to occur on or about August 25, 2005. The agent will receive a commission of 7.0% of the gross proceeds raised in this private placement, as well as broker warrants entitling it to purchase a number of Common Shares at $0.48 equal to 8.0% of the number of the total Common Shares and Flow Through Shares issued in connection with the financing. The proceeds of the Offering will be used to fund exploration and development of the Company's assets, and for general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registrations is available.

Vast Exploration Inc. ( has 25,000 acres of undeveloped land throughout Western Canada; an established joint venture with the aboriginal Paddle Prairie Settlement in Boyer, Alberta; an extensive farm-in with Devon in SW Saskatchewan; and two Coal Bed Methane (CBM) plays: one in central Alberta, the other in the Black Warrior Basin in Alabama. The company trades on the TSX Venture Exchange under the symbol VST.

Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX Venture Exchange does not accept responsibility for the adequacy of this release

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