Vast to Begin Drilling After Road Bans Lifted
Vast Exploration 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 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".