Oil Find Declared Commercial, Shares Fall

Shares in WesternZagros Resources fell 12 percent on Thursday following the announcement that it has completed a revised resources assessment of its Kurdamir Oligocene reservoir in the Kurdistan Region of Iraq and there are no material changes.

On the Garmian Block, declaration of commerciality has been filed, the Baram-1 exploration well has discovered light oil, albeit in low permeability reservoir, and the Hasira-1 well has thus far confirmed the extension of the Sarqala oil discovery in the Jeribe reservoir.

Operational updates on the Kurdamir and Garmian Blocks include:

  • Independently audited revised assessments of gross unrisked mean contingent and prospective resources for the Oligocene reservoir in the Kurdamir Block are materially unchanged following the Kurdamir-3 well results.
  • The Company has filed a declaration of commerciality of the Sarqala Discovery and is advancing development plans with the Kurdistan Regional Government.
  • The Baram-1 well discovered a gross interval of 73 metres of light oil in the Oligocene reservoir and this indicates a gross hydrocarbon column in excess of 500 metres if it extends to the crest of the Baram structure. The well will be suspended pending further evaluation.
  • The Hasira-1 well confirmed light oil in the Jeribe reservoir and the well is preparing to drill ahead into the deeper Oligocene reservoir.
  • A 30 day extended well test in the Kurdamir-2 well is scheduled for March to better assess the Oligocene reservoir performance.
  • A workover of the Sarqala-1 well is scheduled for March to increase the production capability above the current capacity of 5,000 barrels of oil per day.

4 Responses to Oil Find Declared Commercial, Shares Fall