CALGARY, ALBERTA--(Marketwire - June 29, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") is pleased to provide an operational update on drilling operations at the Kurdamir-2 well and on remediation efforts at the Sarqala-1 well.
- Kurdamir-2 well has reached total depth and penetrated 510 metres of naturally-fractured marlstones and limestones in the Cretaceous Shiranish reservoir. Oil shows were recorded throughout the interval.
- Remedial action to repair the operational issue at Sarqala-1 will be completed in 2 weeks.
- WesternZagros has reached 2 million man hours without a lost time incident.
Kurdamir-2 Exploration Well
The operator, Talisman (Block K44) B.V. ("Talisman") and WesternZagros have informed the Kurdistan Regional Government that the well has reached final total depth of approximately 4,000 metres within the Cretaceous-age Shiranish reservoir. The Shiranish reservoir, as penetrated, was comprised of a gross interval of 510 metres of naturally-fractured marlstones and limestones. Oil shows with associated elevated mud gas readings were recorded over the entire Shiranish section penetrated. Wireline logging operations have commenced and upon conclusion, the wellbore will be cased with a 7" diameter production liner prior to the commencement of testing. The Company anticipates reporting test results of the Shiranish testing program throughout July and August. Cased hole testing programs are also being discussed with the operator for the previously cased Eocene and Oligocene reservoirs.
WesternZagros is also in discussions with the operator on extended well testing options following the completion of the Kurdamir-2 initial testing program. In addition, the parties are discussing the timing and location of the next appraisal well, Kurdamir-3.
Remediation work is continuing at the Sarqala-1 well. The cause of the malfunction of the subsurface valve has been diagnosed and the necessary equipment and services have been procured to complete the remediation. WesternZagros anticipates that it could take up to two weeks in order to return the well to its former status.
Health, Safety and Environmental ("HSE") Milestone
On June 3, 2012, WesternZagros's operations achieved 2 million man hours without a lost time incident. The dedication to safety demonstrated by all of the Company's employees and contractors has produced a world-class work safety culture.
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 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".
This news release contains certain forward‐looking information relating, but not limited, to operational information, 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 26, 2012 (the "AIF"), which is available on SEDAR at www.sedar.com.
WESTERNZAGROS RESOURCES WAS RECOGNIZED AS A TSX VENTURE 50® COMPANY IN 2012. TSX VENTURE 50 IS A TRADE-MARK OF TSX INC. AND IS USED UNDER LICENSE.
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