By John Lee.
WesternZagros Resources and its co-venturer, Talisman, have submitted a Declaration of Commercial Discovery ("DoC") to the Kurdistan Regional Government ("KRG") for the oil and gas discovery in the Kurdamir Block.
A phased development plan, outlining future production wells, facilities and supporting infrastructure, is under preparation for submission to the KRG.
Simon Hatfield (pictured), WesternZagros Chief Executive Officer, said:
"This is a long anticipated, important milestone for WesternZagros as well as the Kurdistan Region. We estimate the Kurdamir block to hold nearly 1 billion barrels of oil equivalent (BOE) of contingent resources on a mean basis.
"In addition, the three stacked reservoirs in Kurdamir hold significant upside potential, of an additional estimated 1.6 billion BOE of prospective resources on a mean basis.
"Declaring Kurdamir as a commercial discovery is another key step as we continue our evolution from an explorer to a producer and towards generating cash flow."
Future expansion phases will be determined by the success of the first phase of the development drilling campaign. The co-venturers are advancing plans for the first horizontal development well with an anticipated spud date in Q4 2014, subject to KRG approval.
The DoC submission was accompanied by an Appraisal Report, which reflects the work conducted during an exploration and appraisal program on the Kurdamir field that began in 2009 and concluded in May 2014. The program consisted of acquiring 2D and 3D seismic, drilling three exploration wells, performing numerous formation tests and carrying out an extended well test ("EWT"). Positive results from the Kurdamir-2 EWT were a key component in advancing the DoC.
WesternZagros currently holds a 40 percent working interest in the Kurdamir Block. Talisman holds a 40 percent working interest and is the operator, while the KRG holds the remaining 20 percent.