CALGARY, ALBERTA--(Marketwired - May 21, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has started its latest Garmian Block drilling program in the Kurdistan Region of Iraq. The Mil Qasim Upper Bakhtiari-1 well was spudded on May 19, 2013. This is the first of a planned three-well program to test the potential of the shallow Upper Bakhtiari Formation. With the two deeper Hasira-1 and Baram-1 well included, this is also the first of the Company's five well Garmian drilling program planned for 2013.
Simon Hatfield, CEO of WesternZagros commented:
"Spudding this well is a key step in testing the Upper Bakhtiari Formation, a new reservoir which exhibited oil shows when we drilled the Mil Qasim-1 well in 2011/2012. Subsequent review of logs and seismic data identified a relatively shallow, low-cost prospect. We are also on track with our higher impact Garmian wells: at Hasira-1 the rig is being assembled for spudding in the next few weeks; and at Baram-1 the site construction is advancing and the rig is being transported for a mid-third quarter spud. Also, at Kurdamir-3 we are making good drilling progress. With four active rigs, 2013 promises to be the busiest year in our history to date."
GARMIAN BLOCK (Operated by WesternZagros)
Upper Bakhtiari Drilling Program
Upper Bakhtiari-1 was spudded on the crest of the Mil Qasim Structure. It is the first of three wells planned to explore the potential of the shallow (500 to 700 metres depth) Upper Bakhtiari Formation in the southern part of the Garmian Block. Testing results are anticipated in the third quarter of 2013.
Hasira-1 Exploration and Appraisal Well
The drilling rig for the Hasira-1 exploration and appraisal well is on location and in the final stages of preparation for a spud date in early June, 2013. This well has two objectives: the first is to appraise the extent of the oil leg previously discovered in the Jeribe reservoir at the Sarqala-1 well; the second is to explore the deeper Oligocene reservoir that could not be evaluated when drilling Sarqala-1. The Company believes that this deeper interval is equivalent to the one recently tested at high rates in the Chia Surkh-10 well on the adjacent block to the southeast of the Garmian Block. The Hasira-1 well is designed to be completed in either the Jeribe or the Oligocene reservoir depending on testing results. Hasira-1 is expected to take approximately seven months to drill to a planned total depth of 4,100 metres.
Baram-1 Exploration Well
The Baram-1 well is on track to spud in the third quarter of 2013, in order to explore a potential extension of the oil leg in the Oligocene reservoir of the Kurdamir discovery into the Garmian Block. WesternZagros expects the well to take approximately five months to reach the planned total depth of 3,800 metres. A drilling rig has been deployed from North America for this well.
KURDAMIR BLOCK (Operated by Talisman (Block K44) B.V.)
Kurdamir-3 Appraisal Well
Drilling operations began at the Kurdamir-3 appraisal well on the giant Kurdamir oil discovery on February 22, 2013. Currently, casing is being set in the top seal above the targeted Oligocene reservoir at a depth of approximately 2,400 metres before drilling continues to a planned total depth of 2,800 metres. The well is being drilled on the southwest flank of the Kurdamir structure to appraise the vertical and areal extent of the oil leg in the Oligocene reservoir. Kurdamir-3 is approximately three and five kilometres from the Kurdamir-1 and Kurdamir-2 discoveries respectively. Testing results from Kurdamir-3 are anticipated in the third quarter.
About WesternZagros Resources Ltd.
WesternZagros is an international natural resources company focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds a 40 percent working interest in two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".
WESTERNZAGROS RESOURCES WAS RECOGNIZED AS A TSX VENTURE 50® COMPANY IN 2012 AND 2013. TSX VENTURE 50 IS A TRADE-MARK OF TSX INC. AND IS USED UNDER LICENSE.
This news release contains certain forward‐looking information relating, but not limited, to future drilling and testing plans, and the timing associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "plan", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. The Company cautions readers not to place undue reliance on forward‐looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by WesternZagros.In addition, the forward‐looking information is made as of the date hereof, and the Company assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.
Forward‐looking information is not based on historical facts but rather on management's current expectations and assumptions regarding, among other things, plans for and results of drilling activity and testing programs, future capital and other expenditures (including the amount, nature and sources of funding thereof), continued political stability, and timely receipt of any necessary government or regulatory approvals. Although the Company believes the expectations and assumptions reflected in such forward‐looking information are reasonable, they may prove to be incorrect. Forward‐looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by WesternZagros including, but not limited to, risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; interruptions in operations together with any associated insurance proceedings; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. For further information on WesternZagros and the risks associated with its business, please see the Company's Annual Information Form dated March 22, 2013, which is available on SEDAR at www.sedar.com.
- Commodity Markets
- Company Earnings
Chief Financial Officer
WesternZagros Resources Ltd.
VP Business Development
WesternZagros Resources Ltd.
Manager of Investor Relations
+44 (0) 20 7360 4900
+44 (0) 20 7360 4900
+44 (0) 20 7360 4900