WesternZagros Resources has announced a fourfold increase in the Company's contingent resource estimates at the giant oil discovery on the Kurdamir Block in the Kurdistan Region of Iraq.
Shares closed up 2.7 percent on Monday, but have risen more than 21 percent since the start of last week.
The total mean estimate of gross unrisked contingent resources ("Mean Contingent Resources") at Kurdamir has increased to 590 million barrels of oil ("MMbbl") in the Oligocene and Eocene reservoirs. When gas and condensate are included the Mean Contingent Resources exceed 1 billion barrels of oil equivalent as shown in Table A below. These estimates were audited by independent reserves evaluator, Sproule International Limited ("Sproule").
Simon Hatfield (pictured), WesternZagros's Chief Executive Officer commented;
"There's a saying in the oil industry: big fields get better with time, and Kurdamir is proof of that. The Kurdamir structure has the potential to be the largest light oil field discovered in Kurdistan, with the possibility that it extends on to our neighbouring Garmian Block. We're therefore highly motivated to drill the Kurdamir-3 well on the Kurdamir Block and the Baram-1 well on the Garmian Block this year to further delineate this giant discovery."
Table A: Mean estimates of the gross unrisked contingent and prospective oil and oil equivalent resources in the Kurdamir Block as of January 23, 2013. The resources presented are the gross volumes estimated for the indicated reservoirs without any adjustments for the Company's working interest or encumbrances.
The Mean Contingent Resources in the Oligocene reservoir at Kurdamir have increased to 435 MMbbl of oil from the previously announced 147 MMbbl. When gas and condensate are included the Mean Contingent Resources in the Oligocene equal 786 million barrels of oil equivalent ("MMBOE").