Niko Resources Ltd. will buy a further 12% interest in the Qara Dagh block in Iraqi Kurdistan from Vast Exploration Inc. for $9 million and the three partners plan to deepen the Qara Dagh well by 250 m to 4,150 m.
Vast will use the $9 million to pay for outstanding amounts due Niko under the joint operating agreement and to fund future expenses related to the well deepening. Interests after the transaction are Niko 49%, Vast 25%, Groundstar Resources Ltd. 6%, and the Kurdistan Regional Government 20% carried.
The well, the first exploratory well on the block, has confirmed the presence of an active petroleum system on the block but failed to establish commercial rates in the upper zones. Deepening will target other Cretaceous reservoirs.