Vast Exploration Reaches Gas Deal with Paddle Praire Metis Settlement

Vast Exploration has reached an agreement in principle with the Paddle Prairie Metis Settlement and the board of its oil and gas operating company Sunstar Resources to jointly develop shallow gas interests on the settlement that has 260,000 acres of undeveloped land. All parties intend to participate in a minimum 10 well drilling program this winter with extensive follow-up locations available. Initial surveying work is planned by month end. The Paddle Prairie Metis Settlement is directly adjacent to lands being produced by Encana Corp. and Husky Oil. Over 1500 wells have been drilled in the field with cumulative production greater than 0.5 trillion cubic feet to date.

On the Company's conventional lands in the Barrhead area North-west of Edmonton, the Company has agreed to terms to pool and complete the spacing unit for its first deep exploration well that will reach total depth in the Banff formation at 3600 feet. The well will be operated by Bunker Energy to test multiple high productivity gas targets that have produced up to 2 million cubic feet per day from offsetting lands. Vast has a large operated land position covering over 21,000 gross acres. Further, the Company has interpreted over 200 km of proprietary and trade seismic and has identified several follow-up locations. Vast currently operates six shallow producing Belly River gaswells in the area and can easily place successful wells on stream.

In the same land block, Vast is continuing to develop plans to extract the value it sees in the Coal Bed Methane rights it holds. In these Mannville CBM rights, the Company has an operated 30% working interest with Trident Exploration as its partner. Trident is the recognized leader in the development of the Mannville coals in the region as evidenced by its published successes at the nearby Corbett Creek pilot project.

At its earning lands in South-West Saskatchewan with Devon, the Company attempted a final re-completion of the two new drills from this past summer and did not find economic levels of gas. As a result Vast has allowed its option to continue to earn additional lands to lapse.