| September 8, 2011 |
| WesternZagros's Lab Tests Show 1,900 Metres of Oil and Gas Interval in Kurdamir-1 Well |
CALGARY, ALBERTA--(Marketwire - Sept. 8, 2011) -
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 received encouraging results from a recently-completed study of the drill cuttings from its Kurdamir-1 well utilizing advanced technology. The study, by Weatherford Laboratories in Houston, confirmed the potential of a gross oil and gas interval over 1,900 metres thick in the Kurdamir-1 well. These results significantly increase the Company's confidence of encountering oil in the Eocene and Cretaceous reservoirs in the upcoming Kurdamir-2 well, which would add to the oil already encountered in the Oligocene reservoir.
WesternZagros expects Kurdamir-2 to be spudded in the fourth quarter of 2011 on the Company's Kurdamir Block which is operated by Talisman. Kurdamir-2 is located approximately two kilometres away from Kurdamir-1 and will target the Oligocene, Eocene and Cretaceous reservoirs on the flank of the structure where the combined potential oil interval is likely at maximum thickness. The combined audited mean estimate for all three reservoirs is 585 million barrels of prospective oil resources as at January 14, 2011.
The advanced geochemical study was comprised of both Total Scanning Fluorescence (TSF) and Thermal Extraction Gas Chromatography (TEGC) analyses of approximately 100 drill cutting samples and six oil and condensate samples from the Kurdamir-1 well. TSF is a technique applied to organic solvents from drill cuttings by exciting a sample using UV light and measuring its fluorescence intensity. TEGC provides a rapid automated determination of hydrocarbon compounds. In combination, these techniques can differentiate between oil and gas in potential reservoirs.
"This is a further positive step in our evaluation of the potentially large oil intervals of the Kurdamir discovery," said Simon Hatfield, WesternZagros's Chief Executive Officer. "We are excited by the upcoming opportunity for the Kurdamir-2 well to test the potential for over 580 million barrels of recoverable oil in the Oligocene, Eocene and Cretaceous reservoirs."
About WesternZagros Resources Ltd.
WesternZagros is an international natural resources company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros' shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".
This news release contains certain forward-looking information relating, but not limited, to operational information, future drilling and development plans and the timing associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "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 April 11, 2011, which is available on SEDAR at www.sedar.com.
In addition, statements relating to "prospective oil resources" contained herein are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources described can be economically produced in the future. Terms related to resource classifications referred to herein are based on the definitions and guidelines in the Canadian Oil and Gas Evaluation Handbook. "Prospective resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery (geological chance of success) and a chance of development (economic, regulatory, market, facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. The estimates referred to herein have not been risked for either the chance of discovery or the chance of development. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources. All resource estimates presented are gross volumes for the indicated reservoirs, without any adjustment for working interest or encumbrance. The combined mean estimate of prospective oil resources presented for the Kurdamir intervals above is a summation of the mean estimate for each of the Tertiary Oligocene (280 million barrels (MMbbl)), the Tertiary Eocene (124 MMbbl) and the Cretaceous (181 MMbbl) intervals. The mean estimate presented above for the Tertiary Oligocene is the average from the probabilistic assessment that was completed; the low estimate (P90) is 85 MMbbl, the best estimate (P50) is 260 MMbbl and the high estimate (P10) is 560 MMbbl. The mean estimate presented above for the Tertiary Eocene is the average from the probabilistic assessment that was completed; the low estimate (P90) is 18 MMbbl, the best estimate (P50) is 86 MMbbl and the high estimate (P10) is 273 MMbbl. The mean estimate presented above for the Cretaceous is the average from the probabilistic assessment that was completed; the low estimate (P90) is 59 MMbbl, the best estimate (P50) is 152 MMbbl and the high estimate (P10) is 340 MMbbl. The Company's material change report filed on SEDAR at www.sedar.com and dated January 17, 2011, contains additional detail on the information used in the resource assessment for the Kurdamir prospect and includes the risks and level of uncertainty associated with the recovery and development of the resources and the significant positive and negative factors relevant to the estimates.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
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