The Kurdamir-2 exploration well is currently drilling through the Eocene reservoir at a depth of approximately 3,114 metres and is encountering numerous oil shows. Operations, to date, remain on time and budget. WesternZagros anticipates that the deeper Eocene and Cretaceous reservoirs will be drilled and evaluated by the end of the second quarter of 2012. The Company is working with the operator, Talisman (K44) B.V. ("Talisman"), to examine additional testing options focused on the full 118 metres of gross oil pay in the Oligocene after the well has met the PSC commitments. The co-venturers are also planning a 3D seismic program and a further appraisal well to help determine the ultimate size of the Oligocene reservoir.
WesternZagros will host a conference call on Monday, April 23, 2012 to discuss the Sproule audited resource estimates. The investment community is invited to participate in the conference call, which will begin at 7:00 A.M. Mountain Standard Time (9:00 AM Eastern Standard Time). The news release announcing the Sproule audit results, updated Corporate Presentation and the Sproule Audit Letter will be posted to the Company website, www.westernzagros.com prior to the conference call. You may participate in the call by telephone at 416-340- 2217 or toll free at 1-866-696-5910 (pass code: 7276755).
A replay of the conference call will be available on the Company website, www.westernzagros.com, following the call. Also, a replay may be accessed by telephone at 905-694-9451 / 800-408-3053 (pass code: 7476696).
Sproule carried out its independent audit in accordance with the current guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Pursuant to the COGE Handbook, an audit is the process whereby an independent qualified reserves auditor carries out procedures designed to allow the auditor to provide reasonable assurance that a reporting issuer's reserves data (or specific parts thereof) have, in all material respects, been determined and presented in accordance with the COGE Handbook and are, therefore, free of material misstatement.
Tables 1(a) and 1(c), below, provide estimates of the gross unrisked contingent and prospective oil, and oil equivalent resources in all of the Kurdamir reservoirs, including this latest Sproule audit of the Oligocene reservoir.
Tables 1(b) and 1(d), below, provide estimates of the gross unrisked discovered (oil and gas) and undiscovered (oil) initially-in-place, included in this latest Sproule audit of the Oligocene reservoir of the Kurdamir structure.
Notes to Tables 1(a), 1(b), 1(c) and 1(d):
(1) The resources presented are the gross volumes estimated for the indicated reservoirs without any adjustments for the Company's working interest or encumbrances. For a description of the production sharing terms under the PSCs, see the Company's Annual Information Form dated March 26, 2012 available at www.sedar.com.
This a big win for Westernzargos.....The little train that could..