Oil Find Declared Commercial, Shares Fall

Tables 1(a) and 1(b), shown further below, provide the revised estimates of the gross unrisked recoverable contingent and prospective resources for the Oligocene reservoir of the Kurdamir structure as audited by Sproule as of February 10, 2014. The tables also include the unchanged resource estimates for the Eocene and Cretaceous reservoirs. Further details in respect of the re-evaluation of the contingent and prospective resources for the Kurdamir Oligocene reservoir on the Kurdamir Block are disclosed in the Company's Material Change Report, dated February 13, 2014, which is available at www.westernzagros.com and on SEDAR at www.sedar.com.

Sproule carried out its independent audits in accordance with the current guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Pursuant to the COGE Handbook, an audit is the process whereby an independent qualified reserves auditor carries out procedures designed to allow the auditor to provide reasonable assurance that a reporting issuer's reserves data (or specific parts thereof) have, in all material respects, been determined and presented in accordance with the COGE Handbook and are, therefore, free of material misstatement.

Baram-1 Well - Garmian Block

The Baram-1 well targeted a prospect with the potential of approximately 300 MMBOE of gross prospective resources in the Oligocene reservoir. An open-hole test of this reservoir at Baram has confirmed a gross interval of 73 metres of light oil that flowed 42 degree API oil and water at an approximate rate of 600 barrels per day. The wireline log and test data obtained indicate the test was conducted across an oil water contact in low permeability reservoir. Despite the indications of low permeability in the reservoir, the position of the interpreted oil water contact indicates the presence of a gross hydrocarbon column in excess of 500 metres if it extends to the crest of the Baram structure. The well will be suspended while the Company integrates the wireline log and test results with the 3D seismic interpretation across the structure. Based on the result of this analysis, the Company will make a determination on whether to pursue additional appraisal operations on Baram.