WesternZagros Updates on Garmian, Kurdamir

Kurdamir Block

Following the Repsol acquisition of Talisman Energy Inc. in early May 2015, the Company is now actively engaged with Repsol on advancing the Kurdamir Development Plan. The KRG is keen to progress this oil and gas project although it is anticipated to take until the first quarter of 2016 for the co-venturers to finalize the development plan.

Corporate & Financial

Pursuant to the terms of the Investment Agreement between the Company and Crest dated March 10, 2013 as amended, Crest is in active discussions with the Company to appoint two directors to the WesternZagros Board. The Company welcomes these future appointments as the Company executes on its strategic and financial priorities.

In light of the ongoing oil price environment, the Company continues to implement strict cost reduction efforts that have meaningful impact to the bottom line, including optimizing capital investment, renegotiating contracts with service companies and cutting discretionary expenditures. The Company's priorities are to manage capital spending to profitably grow production and funds flow through operational execution and maintaining prudent and conservative financial discipline.

(Source: WesternZagros)