WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") is pleased to provide an operational update for its Kurdamir and Garmian Blocks and a corporate update.
Kurdamir-2 Exploration Well
Testing of three separate intervals within the approximate 500 metres of gross pay in the Cretaceous reservoir commenced on July 28, 2012. However, the operator, Talisman (Block K44) B.V. ("Talisman"), has experienced a number of operational issues that have introduced delays into the program. The Company anticipates that results will be released when the testing of all three Cretaceous intervals has been completed later this month. In addition, the Company is working with the operator to prepare for testing of the interpreted 275 metres and 118 metres of gross oil pay in the Eocene and Oligocene reservoirs respectively. The results from these two intervals are now anticipated in October.
Kurdamir-3 Appraisal Well
WesternZagros and Talisman are finalizing the location for this next well to appraise the oil discovery in the Oligocene reservoir. The operator is expected to commence site construction in September in preparation for a drilling start date in December. The well is expected to require approximately 140 days to drill to a total depth of 2,860 metres.
Kurdamir 3D Seismic Survey
WesternZagros and Talisman have agreed on the parameters for a 3D seismic survey which will extend from Kurdamir into the neighbouring Topkhana Block in order to better define the areal extent of the Oligocene, Eocene and Cretaceous reservoirs. The survey encompasses 160 square kilometres on the Kurdamir Block alone. Recording of data for this survey is expected to start at the end of December and be completed in mid-April 2013. The data from this survey will be used to decide on future appraisal well locations and refine resource assessments of the existing discoveries.
Simon Hatfield, WesternZagros's Chief Executive Officer, commented:
"While the delay in the Kurdamir-2 testing program is frustrating, it in no way diminishes the optimism we feel towards the potential of the Cretaceous Reservoir at Kurdamir. Similarly, we continue to look forward to the testing results of the Eocene and Oligocene intervals and we are excited to be able to advance the Kurdamir 3D seismic program and the Kurdamir-3 well to continue the appraisal of the Oligocene reservoir that now carries prospective resources of over 1 billion barrels of oil."
Sarqala 3D Seismic Program
The contract has been awarded for a 3D seismic survey encompassing 325 square kilometers over the Sarqala, Mil Qasim and Zardi Complex structures. In addition, the seismic program also includes four 2D seismic lines to be acquired over the Chwar prospect. The crew is anticipated to start recording in late October 2012. Completion date is expected to be in March, 2013.
Sarqala-1 Extended Well Test
WesternZagros continues discussions with the Kurdistan Regional Government("KRG") to recommence the extended well test at Sarqala-1. KRG approval remains pending.
WesternZagros is pleased to announce the launch of its new website at www.westernzagros.com. The new website is part of the Company's ongoing efforts to enhance the quality and availability of information. The aim of the revised site is to allow visitors to gain a comprehensive understanding of WesternZagros and provide a leading resource for information regarding the Company's operations in the Kurdistan Region of Iraq.
WesternZagros will be participating in a panel discussion at the Goldman Sachs Global Natural Resources Conference on September 12 and presenting at the FirstEnergy/Societe Generale Global Energy Conference on September 18. Greg Stevenson, CFO of WesternZagros, will discuss the Company's latest developments and future plans.
Details of the events are as follows:
-- Goldman Sachs Global Natural Resources Conference - London
Wednesday, September 12, 2012 at 2:00 PM (GMT)
-- FirstEnergy/Societe Generale Global Energy Conference - London
Tuesday, September 18, 2012 at 11:00 AM (GMT)