CALGARY, ALBERTA -- 02/11/08 -- Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE: VST) is pleased to provide the following update on its operations and strategic initiatives.
The Company's principal assets are concentrated in the Boyer Area ("Boyer") of northern Alberta and the Barrhead Area ("Barrhead") of central Alberta. Currently, Vast has combined net production from these properties of 190 mcfd (32 boepd).
BOYER - Alberta
Vast is the Operator at Boyer with a working interest of 37.5% in approximately 25,000 gross acres of land. Natural gas production from this property is derived from the Bluesky formation.
In 2006 and 2007, Vast drilled a total of twenty five (25) wells on the property. Ten (10) wells are currently on production at a combined average rate of 425 mcfd (net 155 mcfd or 26 boepd). Vast is pleased to report that as of February 7, 2008 a further ten (10) wells have commenced production following the receipt of approval for a Downspacing Application from the Energy Resources Conservation Board (ERCB). The company expects to add incremental production of approximately 300 mcfd (net 110 mcfd or 18 boepd) from these wells.
During the first quarter of 2008, the Company plans to re-enter a previously drilled and produced well on a 7,138 acre block of Company land situated west of current producing properties. Vast has a 37.5% working interest in these lands. The objective of the re-entry is to determine if commercial production from the Bluesky formation can be established. The well was abandoned in 1987 producing at rates in excess of 250 mcfd. The Company believes that the well should be capable of production of 75 to 100 mcfd, similar to current rates of producing offsetting wells. If successful, four (4) additional wells on Company lands could be re-entered and re-activated. Pipeline infrastructure is in place across this block of land.
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