Shares in WesternZagros Resources fell more than 7% in early trading on Tuesday, following the release of audit results for its Block K44 in Iraqi Kurdistan.
Simon Hatfield, WesternZagros’ Chief Executive Officer, said, “we’re very encouraged by the rising resource estimates for our Block. As well as giving us a clearer picture of the opportunity at Sarqala and Qulijan, this audit also evaluates Baran, a prospect that, like Qulijan, is immediately adjacent to Kurdamir. In the near-term, we are positioned for a substantial oil discovery…”
The text of the company’s announcement follows:
WesternZagros Resources Ltd. (TSX VENTURE:WZR) (“WesternZagros” or “the Company”) is pleased to announce the latest in a series of independent audits by Sproule International Limited (“Sproule”) of WesternZagros’ resource assessments. This audit, together with the previous audit results announced on December 16, 2010 and January 17, 2011, increases the combined mean estimate of gross unrisked prospective resources on the Company’s Kalar-Bawanoor exploration block (“Block K44”) to 1,092 million barrels of oil, or 1,771 million barrels of oil equivalent when gas and condensate are included.
This latest audit by Sproule covered stacked reservoirs in three of the Company’s multiple prospect areas, all located on the Company’s Block K44 in the Kurdistan Region of Iraq. The audit included: the Oligocene, Eocene and Cretaceous reservoir intervals at the Qulijan prospect; the Oligocene and Eocene reservoirs at the Baran prospect; and the Oligocene, Eocene and Cretaceous reservoirs at the Sarqala prospect. The prospective resource assessment numbers provided for the Oligocene, Eocene and Cretaceous reservoirs at the Sarqala prospect are separate and in addition to the prospective resource assessment of the Jeribe reservoir at the Sarqala prospect as previously disclosed in the Company’s Material Change Report dated January 17, 2011.
“We’re very encouraged by the rising resource estimates for our Block. As well as giving us a clearer picture of the opportunity at Sarqala and Qulijan, this audit also evaluates Baran, a prospect that, like Qulijan, is immediately adjacent to Kurdamir,” said Simon Hatfield, WesternZagros’ Chief Executive Officer. “In the near-term, we are positioned for a substantial oil discovery, as our rig is currently back at our Sarqala-1 well where we are preparing to drill a 100 metre sidetrack to test the Jeribe reservoir. Meanwhile, Talisman, on the adjacent K-39 Block, is currently drilling their Topkhana well, which should give us valuable and timely information about the highly promising Kurdamir-Topkhana structure prior to drilling our Kurdamir-2 well.”