WesternZagros Issues 3Q Results

A 3D seismic acquisition program over the Sarqala, Mil Qasim and Zardi complex structures commenced on November 1, 2012 and is anticipated to finish mid-March, 2013. The program consists of using vibroseis operations to acquire 325 square kilometres of 3D seismic. In addition, WesternZagros is also acquiring 60 kilometres of 2D seismic at Chwar to better define this low risk, Jeribe oil opportunity.

During the drilling of the Eocene reservoir section at the Kurdamir-2 well, an interpreted oil bearing, fractured reservoir section with gross thickness of 275 metres was encountered similar to the Eocene reservoir section encountered in the Kurdamir-1 well. On October 31, 2012, the Company reported the successful completion of its Eocene reservoir testing program and proved an oil discovery in the Eocene reservoir.

A single cased hole test was performed over a net perforated interval of 108 metres and resulted in the flow of light, 45 degree API oil at sub-commercial flow rates. No water leg was encountered and no formation water was recovered during the test. Following an acid fracture stimulation, the well flowed back a mixture of oil, emulsion and spent acid.

This finding provides another piece of evidence that the Kurdamir and neighbouring Topkhana structure share a common oil accumulation in the Eocene reservoir in addition to the Oligocene reservoir. This was the first test of the Eocene reservoir and the Company will engage in further study to optimise completion techniques in order to unlock this resource. B

ased upon both this new information and the fact that no formation water was encountered while drilling this Eocene reservoir section, the Company does not expect the revised mean estimate of gross unrisked prospective resources for the Eocene reservoir of 278 million barrels (“MMbbl”) to change materially as a result of these test results.

The full report can be downloaded here.

(Source: WesternZagros)