Uncertain results from Vast Kurdistan well

13 July 2011

Canada’s Vast Exploration reported spotty test results from an exploration well in Kurdistan in some of the first drilling by international companies in Iraq. Vast said the the Qara Dagh well, operated by Calgary-based Niko Resources, reached total depth of 3,908 metres, and has been cased to 3,558 metres. Two separate zones tested 550 and 400 barrels a day (b/d) each of light sweet crude and associated gas. A third interval is under evaluation. But Vast, which holds a 37% interest in the well, said the flows were intermittent and unable to be sustained through the entire test period. The disappointing result sent the company’s shares tumbling on Canada’s main Toronto Stock Exchange, where they lost almost half their value. Undeterred, the company said it is considering whether to re-enter the well and deepen the hole by an additional 250 metres to test additional zones. “We are pleased with the recovery of light oil from this section. Although the reservoir quality appears to be naturally tight, the establishment of an oil column is significant,” said Vast president Ahmed Said. SP

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