Kurdamir-3 Tests "Support Field Commerciality"

The petrophysical analysis of the DST #3 and DST #4 intervals does not indicate the presence of movable formation water. This further supports that the source of the water in the DST #3 and #4 is from deeper within the DST #2 interval.

The Company will be working with its independent resource evaluators to further refine its contingent and remaining prospective resources estimates.

The Company is actively evaluating horizontal well options for future operations which are expected to maximize the deliverability of light oil from the field. Analysis of the 3D seismic data will assist in locating future Kurdamir wells in areas of the Oligocene reservoir likely to have higher fracture density.

Focus will now turn to additional appraisal and development drilling. As a first step in this process, the Operator is in discussion with the KRG to conduct an extended well test on the Kurdamir-2 well. This is anticipated to commence in Q1 2014.

"Our Kurdistan appraisal and development plans show enormous promise and with the expected opening of a new export pipeline by 2014, WesternZagros is well positioned to commence development to help fulfill the Kurdistan Region's stated goal of exporting 300,000 barrels of oil in the near term and 1 million barrels by 2015," Hatfield said.