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CALGARY, ALBERTA--(Marketwire - March 19, 2010) -
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 announce that it has completed well control operations associated with the high formation pressures encountered at the bottom of the Kurdamir-1 well. During well control operations, it was necessary to cement the drill string in the hole below the 9 5/8 inch casing shoe at 2,702m. Accordingly, WesternZagros is now planning to sidetrack the well through the Aaliji and Shiranish formations, stopping before reaching the Gulneri formation, to allow Kurdamir-1 to be logged, cased and tested as planned.
"Although it took longer than desired to plug the stubborn high pressure zone in the Gulneri, we are glad to have that behind us," said Simon Hatfield, WesternZagros' Chief Executive Officer. "We now look forward to sidetracking in order to test the promising oil and gas shows in the Aaliji and Shiranish formations."
The costs of both the well control and sidetracking operations were included in the revised well cost forecast issued in the Company's news release on February 23, 2010. The Company is currently pursuing an insurance claim related to those costs.
Kurdamir-1 is a wildcat exploration well located on the Kalar Bawanoor Block, in the Kurdistan Region of Iraq. WesternZagros is drilling the well with its co-venturers, the Kurdistan Regional Government and Talisman Energy Inc. Further operational updates will be provided as WesternZagros progresses the sidetrack operations, and ultimately the logging, casing and testing of the Aaliji and Shiranish formations.
For further details on WesternZagros Resources Ltd., please refer to the March 2010 corporate presentation available on the WesternZagros website: https://www.westernzagros.com/documents/WZRCorporatePresentationMarch2010.pdf
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 Production Sharing Contract with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros' shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".
This news release may contain forward-looking information based on assumptions that are subject to a wide range of business risks. WesternZagros' operations are subject to all risks normally incident to the exploration, development and operation of crude oil and natural gas properties and the drilling of crude oil and natural gas wells, including geological risk, encountering unexpected formations or pressures, premature declines of reservoirs, potential environment damage, blow-outs, fires and spills, all of which could result in personal injuries, loss of life and damage to property of WesternZagros and others; environment risks; delay or changes in plans with respect to exploration or development projects or capital expenditures; its joint venture partner's continued participation in the exploration activities under the PSC, the ability to attract key personnel; the risk of commodity price and foreign exchange rate fluctuations.
All of WesternZagros' assets are located in the Kurdistan Region of Iraq. As such, WesternZagros is subject to political, economic, and other uncertainties of that region as well as risks of loss due to civil strife, acts of war, guerrilla activities and insurrections. WesternZagros' operations may be materially adversely affected by changes in government policies and legislation or social instability and other factors which are not within its control. Risks also include the uncertainty involved in the estimation of undiscovered resources. For further information on WesternZagros and the risks associated with its business, please see WesternZagros' Annual Information Form dated March 26, 2009 which is filed at www.sedar.com and on the Company's web site.
Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. We caution readers and prospective investors of the Company's securities 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
WesternZagros Resources Ltd.Greg StevensonChief Financial Officer(403) 693-7007
or
WesternZagros Resources Ltd.Lisa HarrimanInvestor Relations(403) 693-7017investorrelations@westernzagros.comwww.westernzagros.com
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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