WesternZagros Issues 3Q Results

By John Lee.

WesternZagros Resources has issued its results for the period ended September 30, 2012:

At the Kurdamir-2 well, the operator, Talisman (Block K44) B.V. (“Talisman”), and WesternZagros successfully completed the first of three planned cased-hole tests in the Oligocene Formation of the Kurdamir-2 well.

The test targeted 20 metres of fractured reservoir below the main porous zone. This zone tested at stabilized rates of up to 3,450 barrels per day of light 38 degree API oil and 8.8 million cubic feet per day of natural gas over a two-day period. The final rate was achieved on a 72/64” choke with a wellhead flowing pressure of 810 psi. No formation water was detected.

The Company’s expectation of an increase in its contingent resources is based on the now proven lowest known oil in the Kurdamir-2 well at 2,590 metres, 28 metres deeper than reported following the initial open-hole test conducted in March 2012. The Company now interprets the Oligocene oil leg encountered in this well to be 146 metres minimum thickness (previously interpreted to be 118 metres).

The test results also validate that the prospective resources contained in the Oligocene extend still further down the structure and this will be further evaluated in the upcoming Kurdamir-3 well to be drilled once current operations on Kurdamir-2 are completed. The operator will continue the testing program of two additional Oligocene intervals at Kurdamir-2.

On November 8, 2012, WesternZagros restarted the extended well test (“EWT”) at the Sarqala-1 well after approval was received from the Kurdistan Regional Government (“KRG”). The Company is now producing approximately 5,000 bbl/d of oil, with the crude oil being trucked from Sarqala to Khurmala and delivered into the export market. Payment terms are expected in accordance with the September 13, 2012 Oil Agreement between the Federal Government and the KRG.

One Response to WesternZagros Issues 3Q Results

  1. emmett November 27, 2012 at 4:13 am #

    People should be all over this stock…What’s your guess how high will go? I think this could be a hidden gem of a investment besides the ISX and dinar….I predict it will hit… 5.50 min and reach 10 dollars…Anyone else?