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WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the
Company") continued to advance numerous exploration and appraisal initiatives on
both its operated and non-operated ventures in the Kurdistan Region of Iraq
during the third quarter of 2013. On its non-operated venture, the Kurdamir-3
well confirmed the presence of light oil deeper than previously tested at the
Kurdamir-2 well, and affirmed the potential of the Kurdamir discovery. On its
operated venture, WesternZagros is drilling ahead on two Garmian Block
exploration and appraisal wells where testing is expected in the next one to two
months. In addition, the Company acquired state of the art 3D seismic data over
Kurdamir, Sarqala and the north of the Garmian Block. These data confirm that
the Baram prospect is a stand-alone structure with increased potential for
success. The 3D seismic data is also a critical tool to identify optimum
drilling locations for future wells on both the Kurdamir and Sarqala
discoveries. A summary of the activities, the financial statements the
accompanying Management Discussion and Analysis ("MD&A") are available at
www.westernzagros.com and on SEDAR at www.sedar.com.
Commenting on the third quarter results and subsequent events, WesternZagros's
Chief Executive Officer Simon Hatfield said:
"We're pressing forward aggressively with two wells on the Garmian Block.
Hasira-1 and Baram-1 have the potential to further increase production
capability and contingent resources. Baram-1 well, spudded in August near the
Kurdamir discovery, has the highest impact potential of our 2013 drilling
program."
"At the same time, we are continuing our analysis of the Kurdamir discovery and
incorporating the new information and lessons learned from the Kurdamir-3 well.
This well has underscored the need to improve future cementing and acidizing
operations; the need to utilize open hole testing whenever possible; the need to
utilize 3D seismic data to target highly fractured areas for improved production
rates, and the need to pursue horizontal drilling techniques to maximize well
deliverability. In addition, the new formation water salinity data will enable
us to better predict oil-water contacts on wireline logs in future wells."
Simon Hatfield further commented on the outlook for the remainder of 2013 and 2014:
"During the first half of 2013, we diligently prepared for an increased
exploration and appraisal schedule that we began in the third quarter, and will
continue through into 2014. We are well positioned as we advance WesternZagros's
ambitious plans to deliver production and cash flow from our promising Kurdistan
Region light oil discoveries."
"With the commissioning of the new Kurdistan Region oil export pipeline and the
rapid development of domestic markets, WesternZagros is looking to declare
commerciality on two oil fields - Sarqala this year and Kurdamir in 2014. We've
identified four prospective exploration drilling targets in 2014, with Qulijan
and Chwar anticipated to spud in first quarter 2014."
Third Quarter Operations Summary
Operated Joint Venture: Garmian Block
In the Garmian Block, WesternZagros is currently drilling ahead on two wells,
Baram-1 and Hasira-1, with testing on both expected in the next one to two
months. The Baram-1 well has the potential to substantiate gross unrisked
contingent resources (mean estimate) of up to 300 million barrels of oil
equivalent ("MMBOE"). At the Sarqala-1 well, extended well test ("EWT")
production is ready to commence subject to Kurdistan Regional Government ("KRG")
approval, and work continues for a planned workover to increase capacity from
5,000 to 10,000 barrels per day ("bbl/d"). WesternZagros is in discussion with
its co-venturer, Gazprom Neft Middle East B.V. ("Gazprom Neft"), regarding the
declaration of commerciality for the Sarqala discovery which is targeted by the
end of 2013.
Baram-1 Well
-- The Baram-1 well was spudded on August 13, 2013 to explore the Oligocene
reservoir.
-- Interpretation of the good quality new 3D seismic data indicates that
the Baram structure is separated from the Kurdamir structure by a fault.
This increases the geological chance of success of Baram-1 to 32%.
-- The well is currently at 3,088 metres and is expected to reach the
planned total depth of 3,800 metres by the end of 2013.
Hasira-1 Well
-- The Hasira-1 well was spudded on June 6, 2013, with the dual objectives
of being a low risk appraisal well for the Jeribe reservoir on the
Sarqala discovery and an exploration well for the deeper Oligocene
formation. The Oligocene exhibited oil shows during the drilling of
Sarqala-1, but was not able to be evaluated at the time.
-- Hasira-1 is currently at 3,919 metres after setting casing just above
the Jeribe reservoir.
-- The well is expected to reach total depth of 4,100 metres in the
Oligocene reservoir by early 2014.
-- The Jeribe reservoir has the potential for 25-50 MMBOE of gross unrisked
prospective resources (mean estimate) while the deeper Oligocene
reservoir has the potential for 50-250 MMBOE of gross unrisked
prospective resources (mean estimate).
-- The well is expected to be completed in either in the Jeribe or the
Oligocene reservoir, depending on testing results.
Sarqala-1 EWT
-- The Sarqala-1 EWT is expected to recommence upon approval from the KRG.
-- Engineering work continues for a workover planned in the first half of
2014 in order to test the ultimate potential deliverability of the
Jeribe reservoir in the Sarqala-1 well. Long lead items have been
delivered and a workover rig is being tendered.
-- The Sarqala-1 workover could increase production capability from 5,000
to 10,000 bbl/d.
-- Preliminary engineering design is advancing on the Sarqala first phase
central processing facility with a 20,000 bbl/d capacity.
-- A dedicated team has been formed by WesternZagros and Gazprom Neft for
the phased development of the Sarqala discovery.
-- Discussions continue with the KRG to advance plans to use natural gas
from the Garmian Block. Gas utilization studies are ongoing and include
the following options: supply of gas via a pipeline for domestic
consumption, gas re-injection to maximize oil recovery, and gas as fuel
for temporary and permanent power generation.
Seismic Acquisition
-- Acquisition of 3D seismic over the northern portion of the Garmian block
commenced on August 6, 2013, in order to better define the areal extent
of the Baram and Qulijan structures. It was completed on September 9,
2013, on time and under budget.
-- Processing of the seismic is anticipated to be completed in Q1 2014.
This data will allow future appraisal wells to be more accurately
located to target reservoir fracturing for higher well deliverability.
-- The analysis of a separate 3D seismic survey over the southern portion
of the Garmian block, including the Sarqala, Mil Qasim and Zardi Complex
structures, is underway with completion anticipated by the end of 2013.
-- WesternZagros expects to benefit enormously from this investment in
seismic data. This data will be used to improve the Company's
understanding of fracturing within the reservoirs in these structures,
and to better define the Jeribe, Oligocene, Eocene and Cretaceous
reservoirs and optimize the number and placement of future development
wells.
-- Processing and interpretation of an additional 2D seismic program over
the Chwar and Alyan structures has been completed.
2014 Potential Exploration Targets
-- Under the Garmian PSC, the exploration period expires on December 31,
2014. Any prospects not drilled, tested and declared commercial by that
date are required to be relinquished and the acreage returned to the
KRG. The Company and its co-venturer, Gazprom Neft, have identified four
potential exploration prospects for exploration drilling in 2014:
Qulijan, Chwar, Qula, and Alyan.
-- The Qulijan and Chwar prospects will be drilled in the first quarter of
2014, which target 86 million and 25 million barrels of gross unrisked
prospective resources (mean estimate) of oil, respectively.
-- The Qulijan prospect has been approved by the co-venturers as the
remaining exploration commitment well and is anticipated to be spudded
in Q1 2014. The well site has been prepared and long lead items ordered.
-- The Company is considering its options with regards to its participation
in the exploration drilling of the other three prospects. Under the
Joint Operating Agreement with Gazprom Neft ("JOA"), a party has the
ability to fully fund an exploration well if the other party elects not
to participate (the "non-consenting party"). The non-consenting party is
able to re-establish its rights in the exploration well, up until a
declaration of commerciality is made, by reimbursing the other party for
its share of the back-costs of the operation plus an agreed upon
premium.
-- The Company has decided not to participate in the exploration drilling
at Chwar based upon both the risk/reward profile of Chwar and the
Company's existing financial resources. Gazprom Neft has committed to
fund the entire costs of drilling the Chwar prospect utilizing the terms
of the JOA. The Chwar well is anticipated to spud in Q1 2014 and test
the Jeribe-Dhiban and Mio-Oligocene reservoirs. Well site preparations
are underway and long lead items ordered. The Chwar well will be
operated by WesternZagros, and WesternZagros will have the ability to
reinstate its rights to the prospect if a material discovery is made as
outlined above.
-- The Company and its co-venturer are conducting technical evaluations of
the Qula Prospect on the southeast and the Alyan Prospect on the western
portion of the Garmian Block. Qula is in close proximity to the
neighbouring Chia Surkh oil discovery. The Alyan Prospect is a moderate
risk opportunity targeting the Jeribe and Oligocene reservoirs.
Potential drilling locations have been identified and the Company is
proceeding with the drilling designs for both wells.
-- Gazprom Neft has expressed interest in fully funding both Qula and Alyan
under the provisions of the JOA, subject to the conclusions of the
technical evaluations and the ability to drill and test the wells prior
to the expiry of the exploration period.
-- Based on the conclusion of the technical evaluations of these prospects,
the Company will make a determination whether to fund its share in the
drilling of these wells or to allow Gazprom Neft to fully fund the wells
with the Company retaining its rights to the prospects if a material
discovery is made as described above.
Non-Operated Joint Venture: Kurdamir Block
The Kurdamir-3 well tested light oil at a deeper depth than previously tested
and confirmed the Kurdamir Oligocene discovery to be a giant field containing a
mean estimate of 717 million barrels of oil equivalent of gross unrisked
contingent resources of oil, gas and condensate including a mean estimate of 390
million barrels of gross unrisked contingent resources of oil. The previously
drilled Kurdamir-2 well is being prepared for an EWT to better define the
reservoir and oil characteristics of the field. WesternZagros is working with
the operator, Talisman (Block K44) B.V. ("Talisman"), towards a declaration of
commerciality for the Kurdamir discovery in the second quarter of 2014. This
will be followed by a development plan for the combined mean estimate of one
billion BOE of unrisked gross contingent resources estimated to be recoverable
from the Oligocene and Eocene reservoirs.
Kurdamir-3 Well
-- Talisman has completed testing operations in the Oligocene reservoir of
the Kurdamir-3 appraisal well. Based on the well results, The Company's
management does not anticipate a material change to the contingent
resources of Kurdamir.
-- Four drill stem tests ("DST") were conducted in the lower part of the
Oligocene reservoir, which exhibited poorer reservoir characteristics
(including fewer fractures) than previous Kurdamir wells:
-- DST #1 was conducted over an interval of 12 metres, between -2,162
and -2,174 metres subsea ("mSS"), across a fracture zone below the
base of the reservoir with the objective of proving new lowest known
oil. The zone produced a limited amount of oil and spent acid.
-- DST #2 was conducted over four intervals from -2,000 to -2,105 mSS.
After acidizing the zones, the well produced 38-degree API oil at
low rates with an average water cut of 65 percent.
-- DST #3 was conducted over an interval between -1,960 and -1,980 mSS
and flowed 37 degree API light oil at a rate of 633 bbl/d with an
average water cut of 55 percent.
-- DST #4 was conducted over an interval between -1,925 and -1,941 mSS
and flowed 885 bbl/d of 37 degree API light oil with an average
water cut of 55 percent.
-- The results DST #3 and DST #4 confirm the presence of light oil, with an
oil-water contact at a depth of at least -2,049 mSS, which is a minimum
of 33 metres deeper than the lowest known oil in the Kurdamir-2 well.
-- The gas-to-oil ratio was approximately 1,000 to 1,100 standard cubic
feet per barrel, indicating that the oil leg is likely in connection
with the gas cap on the crest of the structure.
-- Third party analysis concluded that problems with cement bond integrity
resulted in water channeling upwards to DST intervals #3 and #4 from the
deeper DST #2. DST #2 straddled an oil-water contact while petrophysical
analysis of the DST #3 and DST #4 intervals did not indicate the
presence of movable formation water.
-- The findings of Kurdamir-3 will be provided to the Company's independent
resource evaluators to confirm the internal evaluations which support
that there is no material change to the contingent resource estimates.
-- The 3D seismic data acquired over Kurdamir will greatly enhance the
ability to identify structural features and areas that have higher
fracture density in order to determine future drilling locations.
Horizontal drilling techniques are being considered for future
operations to increase connectivity with fractures and maximize the
deliverability of light oil from future wells.
-- A dedicated team has been formed by WesternZagros and Talisman for the
phased development of the Kurdamir discovery.
-- Discussions are ongoing with the KRG to advance plans to use natural gas
from the Kurdamir Block.
-- Gas utilization studies are ongoing and include the following options:
supply of gas via a pipeline for domestic consumption, gas re-injection
to maximize oil recovery, and gas as fuel for temporary and permanent
power generation.
Seismic Acquisition
-- The Kurdamir 3D seismic survey started in January 2013 and was completed
in July 2013. The goal was to more clearly define the Oligocene, Eocene
and Cretaceous reservoirs.
-- Processing and interpretation of the data is currently underway with
completion anticipated in Q1 2014. Analysis of the 3D seismic data will
help define future Kurdamir well locations targeting fractured areas
within the reservoir to maximize deliverability.
Financial Position
-- At September 30, 2013, WesternZagros had $124.7 million in working
capital, excluding a $13.0 million deposit held in trust for a drilling
contract.
-- The Company is well positioned for its currently planned activities.
Outlook
In accordance with the Kurdamir and Garmian PSCs, the end of the exploration
periods are September 1, 2014 and December 31, 2014, respectively. Upon
declaration of commerciality of a discovery, the development periods begin. A
declaration of commerciality is required to be made prior to the expiration of
the exploration period.
On the Kurdamir Block, the Company's focus will be to commence development of
the approximately one billion BOE of unrisked gross contingent resources
combined mean estimate ("Gross Mean Contingent Resources") discovered to date.
Further analysis will be completed on the prospective resources to determine how
best to proceed to delineate these discoveries.
On the Garmian Block, the Company's focus will be to commence development of the
Company's Sarqala discovery and to complete the remaining exploration drilling.
This will include the completion of drilling and testing of the Baram prospect
(mean estimate of approximately 0.5 billion BOE gross unrisked prospective
resources) and the Hasira well, which has a dual objective of appraising the
Jeribe reservoir discovered by the Sarqala-1 well and exploring the potential of
the deeper Oligocene reservoir. These wells are planned for the fourth quarter
of 2013 and the first quarter of 2014, respectively. In addition,
WesternZagros's work program on the Garmian Block over the next 15 months will
include exploration activities to drill the highest ranked prospects prior to
the end of the exploration period. This ranking will be based on the results of
the North and South Garmian Seismic Programs (2D and 3D), the 2013 drilling
results from the Company's planned wells on the Garmian and Kurdamir Blocks and
other operators' well results on neighbouring blocks. Potential exploration
prospects in 2014 include Qulijan, Qula, Chwar, and Alyan. At the same time, the
Company is progressing with its respective co-venturers regarding timing of
declaring commerciality and submitting development plans over the next six
months.
Kurdamir Block
The Company continues to work with the operator, Talisman, to integrate the
Kurdamir-3 results and recently acquired 3D seismic data as it appraises the oil
and gas field. The joint venture is also preparing Kurdamir-2 for extended well
tests and will conduct further rigless testing at Kurdamir-3.
The Company's portion of planned expenditures for the remainder of 2013 includes
approximately $7 million for the Kurdamir-3 testing program (including the costs
of DST#3 and #4) and other Kurdamir-3 related costs, $6 million for the other
Kurdamir appraisal activities, including preparation for a Kurdamir-2 extended
well test, ongoing seismic processing and interpretation costs, preparation and
planning for declaration of commerciality and field development, and $3 million
for supervision, local office costs and other Kurdamir PSC-related costs.
Garmian Block
Sarqala-1 Extended Well Test ("EWT")
WesternZagros expects to recommence the EWT at Sarqala upon KRG approval to gain
additional information in order to appraise the discovery for future
development. Upon receipt of KRG approval, and the procurement of a suitable rig
and tubular equipment, the Company also plans to complete a workover of the
Sarqala-1 well in the first half of 2014 in order to allow future EWT production
capability to increase beyond the current 5,000 bbl/d. Long lead items have been
ordered and tendering for a rig is outstanding for this workover.
-- The Company and its co-venturers continue discussions with the KRG to
advance plans for the utilization of natural gas from both the Garmian
and Kurdamir Blocks.
-- Gas utilization studies are ongoing and include the following options:
supply of gas via a pipeline for domestic consumption, gas re-injection
to maximize oil recovery, and gas as fuel for temporary and permanent
power generation.
Hasira-1 Exploration and Appraisal Well
The Hasira-1 appraisal and exploration well was spudded on June 6, 2013. The
well is planned to drill to a total depth of approximately 4,100 metres in the
Oligocene reservoir. WesternZagros plans to complete the well either in the
Jeribe or the Oligocene reservoir depending on drilling and testing results.
Hasira-1 is anticipated to be completed in late fourth quarter 2013 or early
first quarter 2014.
Baram-1 Exploration Well
The Baram-1 well was spudded on August 13, 2013 to explore the Oligocene
reservoir. The Company expects the well to reach the planned total depth of
3,800 metres by the end of 2013. Baram-1 is anticipated to be completed in late
fourth quarter 2013. The completion of either Baram-1 or Hasira-1 in 2013 would
fulfill the Company's obligations under the second exploration sub-period of the
Garmian PSC, prior to any extension of such sub-period.
Garmian Seismic Programs
Processing and interpretation of the 2D data over the Chwar and Alyan structures
has been completed. The 3D data over the Sarqala, Mil Qasim and Zardi complex
structures is currently underway with completion anticipated by end 2013. The
survey included 325 square kilometres of 3D seismic and 60 kilometres of 2D
seismic. Analysis of the 3D seismic data will be used to optimize the number and
placement of future appraisal wells, improve the Company's understanding of
fracturing within these structures, and to better define the Jeribe, Oligocene,
Eocene and Cretaceous reservoirs.
Together with well results, interpretation and integration of the recently
acquired 3D seismic over the northern portion of the Garmian block, anticipated
to be in Q1 2014, will assist the Company when planning to file the development
plan with the KRG also in 2014.
2014 Potential Exploration Targets
Under the Garmian PSC, the exploration period expires on December 31, 2014. Any
prospects not drilled, tested and declared commercial by that date are
relinquished and the acreage returned to the KRG. The Company and its
co-venturer, Gazprom Neft, have identified four potential exploration wells on
the Garmian Block, which are Qulijan, Chwar, Qula, and Alyan.
The Qulijan prospect has been approved by the co-venturers as the remaining
exploration commitment well and is anticipated to be spudded in Q1 2014. This
well will target 86 million barrels of gross unrisked prospective resources
(mean estimate) of oil. The well site has been prepared and long lead items
ordered.
The Company is considering its options with regards to its participation in the
exploration drilling of the remaining prospects. Under the joint operating
agreement with Gazprom Neft ("JOA"), a party has the ability to fully fund an
exploration well if the other party elects not to participate (the
"non-consenting party"). The non-consenting party retains its ability to
re-establish its rights in the exploration well under the JOA up until a
declaration of commerciality is made by reimbursing the other party for its
original share of the costs of the operation had it participated, plus an agreed
upon premium.
The Company has decided not to participate in the exploration drilling at Chwar
based upon both the risk/reward profile of Chwar and the Company's existing
financial resources. Gazprom Neft has committed to fund the entire costs of
drilling the Chwar prospect utilizing the terms of the JOA. The Chwar well is
anticipated to spud in Q1 2014 and test the Jeribe-Dhiban and Mio-Oligocene
reservoirs, targeting 25 million barrels of gross unrisked prospective resources
(mean estimate) of oil. Well site preparations are underway and long lead items
ordered. The Chwar well will be operated by WesternZagros, and WesternZagros
will have the ability to reinstate its rights to the prospect if a material
discovery is made.
The Company and its co-venturer are conducting technical evaluations of the Qula
Prospect on the southeast and the Alyan Prospect on the western portion of the
Garmian Block. Qula is in close proximity to the neighbouring Chia Surkh oil
discovery. The Alyan Prospect is a moderate risk opportunity targeting the
Jeribe and Oligocene reservoirs. Potential drilling locations have been
identified and the Company is proceeding with the drilling designs for both
wells. Gazprom Neft has expressed interest in fully funding these prospects
under the provisions of the JOA, subject to the conclusions of the technical
evaluations and the ability to drill and test the wells prior to the expiry of
the exploration period. Based on the conclusion of the technical evaluations of
these prospects, the Company will make a determination whether to participate in
the initial drilling of these possible wells or to allow Gazprom Neft to fully
fund the wells while retaining the ability to reinstate its rights to the
prospects if a material discovery is made.
The Company's portion of planned expenditures related to Garmian Block
activities for the remainder of 2013 include $12 million for the Hasira-1 well,
$12 million for the Baram-1 well, $7 million in planning and long leads for
Qulijan, $4 million for the Sarqala planning and predevelopment and EWT
activities, $2 million for other exploration costs and seismic processing and
interpretation costs, $2 million for supervision, local office costs and other
Garmian PSC-related costs, and $4 million for other Corporate costs.
This news release contains certain forward-looking information relating, but not
limited, to operational information, future drilling and testing plans, seismic
programs and the timing and costs 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.
In addition, statements relating to "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 which are as follows. "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. "Contingent
resources" are those quantities of petroleum estimated, as of a given date, to
be potentially recoverable from known accumulations using established technology
or technology under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies. Contingent resources
have an associated chance of development (economic, regulatory, market and
facility, corporate commitment or political risks). The estimates referred to
herein have not been risked for the chance of development.
There is no certainty that the contingent resources will be developed and, if
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 contingent resources.
All resource estimates presented are gross volumes for the indicated reservoirs,
without any adjustment for the Company's working interest or encumbrances. A
barrel of oil equivalent (BOE) is determined by converting a volume of natural
gas to barrels using the ratio of 6 million cubic feet (Mcf) to one barrel. BOEs
may be misleading, particularly if used in isolation. A BOE conversion ratio of
6 Mcf:1 BOE is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current price of oil as
compared to natural gas is significantly different from the energy equivalency
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication
of value. The Company's Statement of Oil and Gas Information contained in its
Annual Information Form dated March 22, 2013 ("AIF") filed on SEDAR at
www.sedar.com contains additional detail with respect to the resource
assessments and includes the significant risks and uncertainties associated with
the estimates and the recovery and development of the resources, and, in respect
of contingent resources, the specific contingencies which prevent the
classification of the resources as reserves. In addition, combined mean
estimates of resources which are presented in this MD&A are an arithmetic sum of
the mean estimates for individual reservoirs and each such individual mean
estimate is the average from the probabilistic assessment that was completed for
the reservoir. Readers should refer to the AIF for a detailed breakdown of the
high (P10), low (P90) and best (P50) estimates for each of the individual
reservoir assessments.
WESTERNZAGROS RESOURCES WAS RECOGNIZED AS A TSX VENTURE 50(R) COMPANY IN 2012
AND 2013. TSX VENTURE 50 IS A TRADE-MARK OF TSX INC. AND IS USED UNDER LICENSE.
FOR FURTHER INFORMATION PLEASE CONTACT:
WesternZagros Resources Ltd.
Greg Stevenson
Chief Financial Officer
(403) 693-7007
WesternZagros Resources Ltd.
Tony Kraljic
VP Business Development
(403) 693-7011
WesternZagros Resources Ltd.
Lisa Harriman
Manager of Investor Relations
(403) 693-7017
investorrelations@westernzagros.com
www.westernzagros.com
Smithfield Group
John Kiely
+44 (0) 20 7360 4900
jkiely@smithfieldgroup.com
Smithfield Group
Brett Jacobs
+44 (0) 20 7360 4900
bjacobs@smithfieldgroup.com
Smithfield Group
James McFarlane
+44 (0) 20 7360 4900
jmcfarlane@smithfieldgroup.com
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