WesternZagros Resources has issued an update in advance of the company's standard second quarter results which are scheduled for release on 13th August, 2015:
Second quarter production from the Sarqala-1 well averaged 5,427 barrels of oil per day ("bbl/d). WesternZagros continues, in accordance with the KRG, to supply this production to the domestic market under pre-paid contracts. The Company currently has two domestic customers for its oil production.
The Company is incorporating final comments from the Kurdistan Regional Government ("KRG") into its Sarqala Field Development Plan ("FDP"). Approval of the FDP is expected once the KRG has completed its contractual negotiations to build a natural gas plant to utilize the associated natural gas from the Sarqala field.
Operations to suspend the Hasira-1 well are proceeding according to plan and are anticipated to be completed in the third quarter. Although the FDP will delineate and develop the resources within the Jeribe reservoir, the Company and its partner, Gazprom Neft, are actively discussing the most effective next steps and the timing to assess the potential of Hasira-1's Mio-Oligocene oil discovery.
The Company has prepared the Sarqala-2 well site and is ready to spud the well, which is expected to occur in the fourth quarter, once the Hasira-1 suspension operations are completed and the Sarqala FDP is approved by the KRG.