CALGARY, ALBERTA–(Marketwired – Nov. 4, 2014) –
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 been informed by its co-venturer and operator, Talisman (Block K44) B.V. (“Talisman”), that the Kurdistan Regional Government (“KRG”) has requested changes to the Kurdamir Development Plan that was submitted on August 31, 2014. WesternZagros and Talisman plan additional consultation with the Ministry of Natural Resources of the KRG to refine the development plan. During this review period, operations on the Kurdamir Block and the drilling of the Kurdamir-4 well will be deferred. Future drilling plans will align with the redefined development plan once approved by the KRG.
“Taking this time out in the near-term development of the Kurdamir Block will provide the opportunity to refine the development initiatives between WesternZagros, Talisman and the KRG. Our Kurdamir Block holds strong oil and gas production potential and we look forward to redefining a plan that is acceptable to the co-venturers and the KRG,” said Simon Hatfield, WesternZagros Chief Executive Officer.
On the Garmian Block, the rig that performed the successful Sarqala-1 workover has been moved to the Hasira-1 well where preparations are underway to test the light oil discovery in the Mio-Oligocene reservoir. Results are expected in December. Following a successful test, the Hasira-1 well will be tied-in to the existing production facility. Activities are also underway to increase the process capacity of this facility to 15,000 barrels per day. WesternZagros is making good progress in discussions with the KRG on the Garmian Development Plan submitted in June, 2014.
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. WesternZagros’s shares trade in Canada on the TSX Venture Exchange under the symbol “WZR”.
This news release contains certain forward-looking statements relating to, but not limited to, operational information, future testing and other development plans, and the timing and expected outcome associated with such activities. 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 and prospective investors in the Company’s securities to not 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.
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, continued security in the Kurdistan Region, timely receipt of any necessary government or regulatory approvals, the Company’s continued ability to employ qualified staff and to obtain equipment in a timely and cost efficient manner, the participation of the Company’s co-venturers in joint activities and the ability to sell any future production and the prices to be received in connection therewith. 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 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, the risk of adverse determinations by governmental authorities, the risk of arbitrating and enforcing claims against entities that may claim sovereignty and other risks associated with international activity, including the lack of federal petroleum legislation and ongoing political disputes in Iraq and recent terrorist activities in Iraq in particular. For further information on WesternZagros and the risks associated with its business, please see the Company’s Annual Information Form dated March 13, 2014 (“AIF”) which is available on SEDAR at www.sedar.com.
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
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.
Chief Financial Officer
WesternZagros Resources Ltd.
VP Business Development
WesternZagros Resources Ltd.
Manager of Investor Relations
WesternZagros Website: www.westernzagros.com
+44 (0) 20 7360 4900
+44 (0) 20 7360 4900