Nov 15 Vast Exploration Inc said it will
abandon the Qara Dagh block in the Kurdistan region in Iraq
along with Niko Resources Ltd after drilling at one of
the wells showed no commercial viability, sending Vast's shares
down to a life low.
Vast Exploration holds a 37 percent interest in the block,
its only asset. Niko is the operator of the block. Groundstar
Resources is the third partner.
Vast Exploration, which acquired a working interest in the
block in 2009, expects to recover $3.25 million from the
Kurdistan regional government within the next year.
The oil and gas company, which named Sam Yik as chief
financial officer, said an attempt to find a suitable farm-in
This is the latest setback for Niko. The company has
abandoned wells in Indonesia and Trinidad, cut its full-year
production forecast due to mechanical issues at one of its
blocks in Bangladesh. It is also dealing with declining volumes
Niko's partner Reliance Industries Ltd cut its
estimate of gas reserves in the Krishna Godavari (KG) D6 block
off India's east coast by about two-thirds to 3.4 trillion cubic
feet (tcf) earlier this month.
Shares of Vast Exploration, which has a market value of
about C$4 million as of Wednesday close, were trading at 0.5
Canadian cents on the Toronto Venture Exchange. Niko's shares
were down 3 percent at C$9.55 on the Toronto Stock Exchange.