Published:
Vast to Begin Drilling After Road Bans Lifted
Closes Longford CBM Sale
Vast Exploration Inc. (TSX VENTURE:VST) ("Vast" or "the Company") will start its 12 well drilling program on the Paddle Prairie Metis Settlement in Boyer, Alberta immediately after road bans are removed, on or around the 1st of May Wellsites and access roads have been surveyed and competitive bids from drilling contractors have been received. Once the well licenses have been approved and ground conditions stabilize, well construction will begin. Pipeline routes have also been identified and surveyed allowing the wells to be tied-in to the Encana operated facilities located nearby.
The wells, which are shallow (less than 400 meters), will be drilled as a group to increase efficiencies and reduce capital costs. Each of the 12 wells is anticipated to initially produce 150 thousand cubic feet per day (mcf/d) and recover over 300 million cubic feet (mmcf) of reserves. There are a further 250,000 acres of undeveloped land on the settlement that is targeted for future drilling phases. Following the successful completion of the 12 well spring program, Vast anticipates a larger 25 to 30 well program slated for early fall 2006. Much of the Boyer lands have year round access, providing Vast the opportunity to ramp up to a full year drilling program. The Paddle Prairie Metis Settlement is directly adjacent to an area where Encana Corp Inc. and Husky Oil Ltd. have drilled over 1500 wells with cumulative production greater than 0.5 trillion cubic feet to date.
Vast has closed its previously announced sale of its Barrhead area coal bed methane (CBM) rights to Longford Corporation for $2.1-million. The deal has been approved by the TSX Venture Exchange. The proceeds of the sale will be used to provide working capital for the Company.
Vast Exploration Inc. (www.vastexploration.com) is an Alberta exploration and production company focused on a joint venture with the Paddle Prairie Metis in Boyer, Alberta; an exploration land play in Barrhead, Alberta; and a Coal Bed Methane (CBM) farm-out in the Black Warrior Basin in Alabama. Vast produces 25 boe/d and has 30,000 acres of undeveloped land in Western Canada. The Company trades on the TSX Venture exchange under the symbol "VST". Further information on Vast can be found at www.vastexploration.com.
Forward-looking Information
Certain information regarding Vast in this news release including management's assessment of future plans and operations, wells to be drilled, timing of drilling, testing and tie in of wells, and anticipated production rates may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas development, production, competition from other producers, inability to retain drilling rigs and other services, and delays resulting from or inability to obtain required regulatory approvals. As a consequence, Vast's actual results, performance or achievements could differ materially from those expressed in, or be given that any events anticipated by the forward looking statements will transpire or occur, or, if any implied by, these forward looking statements and, accordingly no assurance can of them do so, what benefits Vast will derive therefrom. Readers are cautioned not to place undue reliance on this forward-looking information and that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Vast's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
BOE Disclosure
BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf:bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release
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Tags: ,Energy and Utilities:Coal, ,IL,CALGARY, ALBERTA
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