WesternZagros Announces Final Results


Actively pursuing a dual listing of the Company's share capital on the L.S.E. in London, U.K. in order to provide an additional market for future equity financing and trading of shares for existing shareholders.

On February 1, 2013 Mr. William Jack was appointed to the position of General Manager Kurdistan with responsibility for government liaison and in-country administration following the retirement of Mr. Ian McIntosh.

Continued strong emphasis on Corporate Social Responsibility including Community Investment. Employed 203 full and part time local national employees and service contractors to support Company's operations in the corporate offices in Kurdistan and at its camp and EWT production facilities on the Garmian Block. Employed a further 190 local national employees for the ongoing seismic survey program on the Garmian Block.


In accordance with the Kurdamir and Garmian PSCs, the end of the exploration periods are September 1, 2014 and December 31, 2014, respectively, after which the development periods begin. On the Kurdamir Block, the Company's focus will be on continued appraisal drilling to delineate the existing 943 million barrels of oil equivalent ("MMBOE") of Gross Mean Contingent Resources and the estimated 1.6 billion barrels of oil equivalent of Gross Mean Prospective Resources. On the Garmian Block, the Company's focus will be on exploration drilling to delineate the following estimated Gross Mean Prospective Resources: 527 MMBOE on the Baram prospect, 463 MMBOE on the Sarqala Discovery and 143 MMBOE on the Mil Qasim Upper Bakhtiari Discovery. In addition, WesternZagros's work program on the Garmian Block over the next two years will be on exploration activities to rank, prioritize and drill the highest ranked additional prospects prior to the end of the exploration period. This ranking will be based on the results of the North and South Garmian Seismic Programs (2D and 3D) and the 2013 drilling results of the Company's planned wells on the Garmian and Kurdamir Blocks and also other Operator's wells on neighbouring blocks. Possible prospects for future exploration drilling in 2014 include Qulijan, Chwar, Bawanoor, Alyan, Zardi Complex, Tilako and the Upper Fars Fault Trap play.

Kurdamir Block

The Company continues to work with the operator, Talisman, to appraise the giant oil discovery in the Oligocene reservoir of the Kurdamir discovery. This includes a 3D seismic program over the Kurdamir structure with acquisition that commenced in January 2013, drilling and testing the Kurdamir-3 well that was spudded on February 22, 2013, targeting an estimated 150-250 MMBOE of Gross Mean Prospective Resources, and an extended well test in the Kurdamir-2 well which is anticipated to start in the second half of 2013, subject to the approval of the KRG. Appraisal activities for the deeper Eocene and Cretaceous reservoirs will be deferred until additional insight is obtained on optimal drilling locations. The Company anticipates that the results of the 3D seismic survey currently underway over Kurdamir will assist in this process.

Planned expenditures include approximately $30 million for the Kurdamir-3 vertical appraisal well (spudded February 22, 2013), $9 million for the Kurdamir seismic program which commenced in the first quarter of 2013, and $2 million for the Kurdamir-2 completion costs. Contingent projects may also include $9 million for a potential Kurdamir-3 sidetrack, if required, and, subject to KRG approval, $7 million related to commencement of extended well test production at the Kurdamir-2 well.

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