WesternZagros Resources (TSX-V:WZR, StockForum), a Calgary-based oil and gas firm engaged in the acquisition of properties and appraising and producing crude oil and natural gas in Iraq, announced today that the company had completed its amended resources assessment of its Kurdamir Oligocene reservoir located in the Kurdistan region of Iraq with no material changes.
According to the news release, the company filed a declaration of commerciality for the Garmian Block while discovering a gross interval of 73 metres light oil at the Baram-1 exploration well and confirming the extension of the Sarqala oil discovery in the Jeribe reservoir.
The company will suspend Baram-1 well until further evaluations can be carried out and has put forward a plan for a workover of the Sarqala-1 well in March intended to increase the production capability above the current 5,000 barrels of oil per day.
WesternZagros CEO, Simon Hatfield, commented, “The revised assessment, once again, confirms that the Kurdamir Discovery is a giant field containing contingent resources of almost a billion barrels of oil equivalent, a significant oil and gas resource.”
He continued, “On the Garmian block, we're encouraged that the Baram-1 well discovered light oil in the Oligocene. We are evaluating the Baram-1 test results, logs, and core data and integrating with the 3D seismic data to assess the potential of the discovery. We are also encouraged that Hasira-1 has confirmed the extension of the Sarqala oil discovery in the Jeribe reservoir. The Hasira-1 well will now drill into the Oligocene and we are looking forward to the results. "
Then illustrated further, “The development of the Garmian Block is advancing as we have filed the declaration of commerciality, based on the Sarqala Discovery, with the Kurdistan Regional Government. This is the first step in taking WesternZagros from a frontier explorer to a cash flow-generating company.”
And finally concluded, “As the Kurdistan Region moves towards crude oil exports through the newly constructed pipeline, we foresee our high quality, light oil as a valued component to the Kurdish export blend.”
WesternZagros was in the news recently when the company announced the appointment of a Vice President.
Shares dropped 6.48% on the news to $1.01 per share.
Currently there are 475.1m outstanding shares with a market cap of $475.1 million.