WesternZagros to Target Over 1 Billion BOEs during 2011/2012 Exploration Program

WesternZagros Resources has announced that Sproule International has completed an independent audit of the Company’s resource assessment of: the Tertiary Eocene and Cretaceous reservoir intervals of Kurdamir-1; the Jeribe reservoir at Sarqala-1; and the Upper Fars reservoir at Mil Qasim in the Kalar-Bawanoor Block (“Block K44”).

This audit, together with the previous audit results of the Kurdamir-1 Tertiary Oligocene announced on December 16, 2010, confirms WesternZagros’ assessment of the prospective resources at its five exploration targets for 2011/2012. The five prospects are, in anticipated order of drilling: Sarqala-1 Jeribe sidetrack appraisal; Mil Qasim-1 Upper Fars exploration well; and the Kurdamir Tertiary Oligocene, Tertiary Eocene and Cretaceous exploration tests, all three of which are to be drilled in the second Kurdamir well. The combined mean estimate of gross unrisked prospective resources for these five prospects is 792 million barrels of oil or 1,083 million barrels of oil equivalent when gas and condensate are added in.

“In addition to the approximate one trillion cubic feet of gas already discovered, these significant gross prospective oil resources validate the highly encouraging results we have achieved at our first two wells. We have the potential to discover 800 million barrels of recoverable light oil as we drill during the next 12 to 18 months,” said Simon Hatfield, WesternZagros’ Chief Executive Officer. “We’re looking forward to applying the lessons learned from our past drilling challenges and realizing the huge upside on our Block.”

The Company’s best estimate of gross unrisked prospective oil resources is 86 million barrels (MMbbl) in the Kurdamir-1 Tertiary Eocene reservoir, 152 MMbbl in the Kurdamir-1 Cretaceous reservoir, 63 MMbbl in the Mil Qasim Upper Fars reservoir, and 66 MMbbl in the Sarqala-1 well Jeribe reservoir, as of January 14, 2011.

To view the Kurdamir Structure Schematic Cross Section graphic, please click here.

The above illustration indicates the schematic distribution of unrisked contingent resources and unrisked prospective oil resources in the Tertiary Oligocene, Tertiary Eocene and Cretaceous reservoirs at the Kurdamir-1 well in Block K44.

Comments are closed.