Niko will provide financing of $9m which will be used by Vast to pay outstanding amounts to Niko under a joint operating deal as well as to fund future expenses related to the deepening of the Qara Dagh well to 4,150m.
The company will also provide financing to Vast in regard to 34.78% of Vast’s share of the cost of all operations going forward.
Vast will have the obligation, in the event that a commercial discovery is made and produced, to pay Niko an amount equal to the net proceeds of sale associated with an undivided 12% interest in the Qara Dagh block.
Such financing arrangements have been put in place pending Kurdistan regional government approval of the sale by Vast to Niko of an undivided 12% interest in the Qara Dagh block.
The Qara Dagh block, which is located in the prolific Zagros Fold Belt of northern Iraq, lies on trend with existing discoveries.
