WZR in Calgary Herald
Political stability returning to Kurdistan oil industry
Calgary’s WesternZagros heralds recent deals and oil-sharing pact
By Rebecca Penty, Calgary HeraldNovember 22, 2011
CALGARY — When Lisa Harriman of WesternZagros Resources Ltd. tours agroup of investment analysts around northern Iraq’s Kurdistan regionstarting Tuesday, she’ll be careful to avoid the landmines.
Despitesigns warning of off-road explosives, leftovers from the Iran-Iraq warin the 1980s, the landmines and other perils in a part of the worlddeemed politically unstable have the Calgary-based junior energy firmspending $3 million a year on security to protect its operations.
Risksin Kurdistan are “perceived” to be greater than they are, said Harriman— manager of investor relations — on Monday, on the sidelines of aCalgary conference hosted by SEPAC, the Small Explorers and ProducersAssociation of Canada.
“When we go to our well, it’s kind of like going to Medicine Hat,” chimed Greg Stevenson, WesternZagros chief financial officer.
Comparedwith its early days in Iraq, WesternZagros’ security spending isbecoming small potatoes as the political risk diminishes, promptinglarger energy players to descend on Kurdistan.
WesternZagros is about a year away from potentially becoming atakeover target, according to Calgary-based analyst Josef Schachter. Thecompany’s highly anticipated Kurdamir-2 (K2) well, being drilled by itsoperator-partner on one of two Kurdistan blocks for WesternZagros,Calgary’s Talisman Energy Inc., is targeting the Oligocene carbonatereservoir, among the most prolific in Iraq.
“The big home run is what they get at Kurdamir,” Schachter said.
Schachter has a one-year target on the company’s share price of $2.10, far above the closing share price Monday of 72 cents.