WesternZagros Updates on Kurdistan Operations

By John Lee.

WesternZagros Resources has completed the remediation work at its Sarqala-1 producing oil well and is preparing to test the promising Shiranish reservoir in the Kurdamir-2 well.

WesternZagros also continues to actively cooperate with the Kurdistan Regional Government ("KRG") in the effort to assign the third party participant interest ("TPPI") within the Garmian Block.

Sarqala-1 Well

The workover of the subsurface valve at Sarqala-1 has been completed. The well is ready to resume production when the KRG issues the tenth oil sales contract since production commenced in late October, 2011. Prior to taking the well off-line for the repair, it had been producing approximately 5,000 barrels of light oil per day.

Kurdamir-2 Exploration Well

The operator, Talisman (Block K44) B.V. ("Talisman") and WesternZagros are making the final preparations for the planned Shiranish testing program at the Kurdamir-2 well. Testing will begin before the end of the month, upon successful completion of wireline logging and casing of the wellbore with 7 inch diameter production liner.

At least two drill stem tests will be conducted in the interpreted oil column. The well was drilled through the Cretaceous-age Shiranish reservoir to a total depth of 4,000 metres. Preliminary cuttings, mud gas and subsequent log results indicate a potential gross hydrocarbon pay interval of over 500 metres thickness in this zone, with oil shows below approximately 3,500 metres down to total depth. No oil-water contact has been detected. Preliminary log interpretations are encouraging, indicating a fractured limestone reservoir with some matrix porosity.

Garmian Block Third Party Participant Interest Assignment

WesternZagros continues to provide thorough and comprehensive cooperation to the KRG in its negotiations with the multiple parties that have expressed interest in becoming the third co-venturer in the Production Sharing Contract that governs the Garmian Block. The Company intends to maintain its current interest in both the Garmian and Kurdamir blocks.

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