By John Lee.
WesternZagros Resources has, subsequent to its declarations of commerciality and submissions of development plans, and in accordance with its accounting policies, completed an independent evaluation and a new independent audit of its light oil discovery on the Garmian block in the Kurdistan Region of Iraq.
The evaluation has, for the first time, recognized the Company's light oil reserves. Independent preliminary partial economic assessments of the Company's interests in the light oil discoveries on both the Garmian and Kurdamir blocks were also conducted.
Simon Hatfield (pictured), WesternZagros's Chief Executive Officer, said:
"Establishing interim proved oil reserves in the Jeribe/Upper Dhiban reservoir at the Sarqala Discovery on the Garmian Block is a modest but significant first step for the Company. These initial reserve estimates are for the crestal area of the structure around the Sarqala-1 well alone, and do not extend as far as the Hasira-1 well which we anticipate testing in the fourth quarter.
"Although Sarqala-1 has already produced 1 million barrels of light oil during extended well testing in 2012, the reserves represent only a small portion of the potential of the Sarqala Discovery. As we conduct additional tests in Hasira-1 and drill additional development wells, we expect to see our reserves volumes grow considerably."
"To date we have completed independent economic evaluations for three of our light oil reservoirs, the Jeribe/Upper Dhiban reservoir at Sarqala and the Oligocene and Eocene reservoirs at Kurdamir. At Kurdamir we evaluated the contingent resources in the Oligocene and Eocene, resulting in a value of over $1.5 Billion to WesternZagros.
"In the coming months we will complete the valuation of the over 1 Billion bbls of light oil prospective resources in the Oligocene reservoir. At Sarqala, we evaluated the reserves and the prospective resources in the Jeribe/Upper Dhiban in the main part of the structure. These valuations are for our working interest alone and highlight the fact that both blocks are economically viable."