WesternZagros Resources Ltd. (TSX VENTURE:WZR) has announced successful test results at the Kurdamir-1 well, which proves the existence of an oil column in the Oligocene reservoir.
Shares in the company rose more than 14% in early trading.
Sproule International Limited. (“Sproule”) has completed an independent audit which confirms a 327 metre combined gas and oil hydrocarbon column in the Oligocene. Consequently, the Company’s best estimate of gross contingent gas and condensate resources has increased to 850 billion cubic feet (BCF) and 33 million barrels (MMBBL), respectively, as of December 14, 2010. WesternZagros’ best estimate of gross unrisked prospective oil resources has increased to 260 MMBBL as of December 14, 2010 and our best estimate of gross contingent oil resources is 6.5 MMBBL. Tables 1 and 2, below, provide the range of estimates. These resource estimates do not include the Upper Aaliji, Shiranish and Kometan or Cretaceous reservoir intervals penetrated, but not evaluated, during the drilling of Kurdamir-1, where WesternZagros believes there is additional oil potential.
“We are very excited to achieve our primary objective of proving a low sulphur, light oil column in the Oligocene and substantially increasing the prospective oil resources. Our Kurdamir-2 well, which will be drilled next year to test the approximately 700 metres of gross interval with oil shows in the Upper Aaliji, Shiranish and Kometan formations that we were unable to test in this well, will penetrate the Oligocene on the flanks of the structure and will provide further information,” said Simon Hatfield, WesternZagros’ Chief Executive Officer. “Nothing about this Kurdamir-1 well has been easy, but everything we learn supports our view that there is a huge upside to be realized in this structure.”