WesternZagros Resources has provided an operational update for its Garmian Block in the Kurdistan Region of Iraq, and a corporate update.
The Hasira-1 well is in the process of being suspended after conducting a cased-hole testing program in the high pressure Mio-Oligocene oil reservoir.
During this test the wellbore experienced a considerable influx of reservoir formation debris and this resulted in the termination of the test before a definitive oil flow was possible.
"We feel it is prudent to suspend the well and take the time to re-evaluate the situation before deciding on next steps in this challenging well," said Simon Hatfield, CEO of WesternZagros.
Sarqala-1 Production Guidance
Light oil production and sales commenced at the Sarqala-1 well on February 11, 2015. WesternZagros has, in accordance with the Kurdistan Regional Government, supplied this production to the domestic market under pre-paid contracts. Sales volumes are currently constrained by domestic market limitations with daily production ranging up to 8,000 barrels of oil per day.
Should this situation continue, the Company anticipates that average sales volumes from Sarqala-1 will be in the range of 5,700 to 6,700 barrels per day for the remainder of 2015. Based on these production rates and domestic oil prices in the range of US42 to US$52 per barrel, WesternZagros estimates 2015 production revenues of US$17 to US$25 million and operating income of US$12 to US$20 million, after field operating costs.
The Company is pleased to announce that Tony Kraljic has been promoted to Senior Vice President, Finance. Greg Stevenson will be stepping down as WesternZagros's Chief Financial Officer, to pursue other opportunities and has agreed to be available over the coming months to ensure an efficient transition. Mr. Kraljic is now the Company's principal financial officer and assumes the responsibilities from Mr. Stevenson.
Tony Kraljic joined WesternZagros in August 2011 and was promoted to Vice President Business Development in April 2012. He brings with him over 16 years of finance, accounting, and taxation experience. Prior to joining WesternZagros, Mr. Kraljic held increasingly senior positions with Arthur Anderson LLP, Shell Canada, Western Oil Sands and CEDA International Corp, where he was Vice President Finance.
Mr. Kraljic holds a Bachelor of Commerce degree from the University of British Columbia and is a member of the Institute of Chartered Accountants of Alberta.
"Tony is an excellent choice to assume the role of Senior Vice President, Finance. Tony is a competent and qualified Chartered Accountant with industry experience and has served WesternZagros well over the past four years. The combination of Tony's proven abilities and his deep understanding of our business make this a very natural step forward for him, the Company, and our shareholders," said Simon Hatfield (pictured), WesternZagros's Chief Executive Officer.
"We are grateful to Greg for his many years of service to WesternZagros and for this smooth transition. He has built a strong financial team at the company and has demonstrated strong leadership skills during his time with us. During his time as CFO, Greg was responsible for raising over $500 million in debt and equity financings on behalf of the Company. Greg will be missed and we wish him all the best in his future endeavours," said Mr. Hatfield.