OTCPK:WSRLF - Post by User
Post by
Hawkdogon Jun 26, 2009 11:21am
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Post# 16101051
fyi
fyiSent: Friday, June 26, 2009 6:05 AMWesternZagros Resources* (WZR : TSX-V :
$1.59)
Net Change: 0.01, % Change: 0.63%, Volume: 434,872 Getting excited about Iraq? The country's Oil Minister Hussain Shahristani was summoned to parliament this week to answer criticism about plans to award major energy contracts next week, deals which some lawmakers have vowed to derail. Some of those executives have criticized the Oil Ministry for offering oilfields already in production rather than undeveloped fields, and for setting out terms they say will deprive Iraq of its due rewards. Output, at 2.3-2.4 million barrels per day, remains below where it stood before the invasion. Canaccord Adams Senior Energy Analyst Terry Peters believes that the following points might be viewed as ultimately positive for the Iraq oil industry: 1) It is clear that Shahristani is coming under increasing pressure from Parliament over the unresolved problems with the Iraq oil industry that is limiting its ability to increase production. 2) Shahristani has been the main spokesman for his ministry that has declared the Kurdistan regional government (KRG) oil contracts illegal. Part of the reason why he considers them illegal is that the government has yet to pass the Petroleum Law. 3) It is therefore ironic that parliament is now saying to Shahristani that contracts the Iraq ministry might sign with major oil companies for southern Iraq fields, would be considered illegal. The net positives that may ultimately come from this situation could include: Shahristani is forced out or resigns; Parliament may pass the Petroleum Law. If either or both occur, it would benefit the country as a whole and the oil industry in particular.
Separately, but also adding to the optimism in Iraq, London-listed Kurdistan oil explorer Gulf Keystone Petroleum jumped earlier this week after the company said it had detected oil in the Shaikan-1 exploration well drilled in the Shaikan Block in northern Iraq. At last update, WesternZagros announced that drilling of Kurdamir-1 has progressed to a current depth of 1,700m with no significant drilling issues encountered, and the 13 5/8" intermediate casing was set in the Lower Fars as planned.
Total depth for Kurdamir-1 is planned to be approximately 4,000m. Drilling is expected to be completed in October 2009.