New NR - WZR Discovers "Giant Oil Field" at K2 Oil
| April 23, 2012 |
| WesternZagros's Kurdamir-2 Well Discovers a Giant Oil Field in the Oligocene Reservoir |
CALGARY, ALBERTA--(Marketwire - April 23, 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 announce that the mean estimate of gross unrisked contingent resources ("Mean Contingent Resources") has increased to 147 million barrels of recoverable oil (corresponding to 464 million barrels of mean estimated gross discovered oil initially in place) and the mean estimate of gross unrisked prospective resources ("Mean Prospective Resources") has increased to 1.2 billion barrels of recoverable oil (corresponding to 3.6 billion barrels of mean estimated gross undiscovered oil initially in place) for the Oligocene reservoir in the Kurdamir Block. These results follow the major oil discovery at the Kurdamir-2 exploration well in the Kurdistan Region of Iraq. The significant increase in both Mean Contingent and Prospective Resources is due to the fact that Kurdamir-2 encountered a 118 meter light oil column with no indications of a water leg at the Kurdamir-2 location, proving that the oil leg in the Oligocene reservoir on the flank of the Kurdamir structure is involved in a much larger trap than was previously interpreted. The updated resource estimates are confirmed in an independent audit carried out by Sproule International Limited ("Sproule").
"We are delighted with these results as we have found what this company was created to find, and the reason we entered Kurdistan. The Kurdamir structure is proving to be one of the top oil discoveries of the decade and this is a company maker for us," said Simon Hatfield, WesternZagros's Chief Executive Officer. "The oil reservoir of the Kurdamir structure extends further than the area previously assessed and we have not yet found its limits. In addition there is still more news to come on this well as we drill deeper into the Eocene and Cretaceous reservoirs and conduct further testing of the Oligocene oil leg in the coming months."
Contingent Resources
The Company reports an increase of approximately 400 percent of the Mean Contingent Resources in the Oligocene reservoir in the Kurdamir Block to 147 million barrels of oil ("MMbbl"). When gas and condensate are included the Mean Contingent Resources equal 384 million barrels of oil equivalent ("MMBOE"), as shown in Table 1(a) below. For completeness, the corresponding petroleum initially-in-place estimates are also included in Table 1(b) below.
Prospective Resources
The Company also reports an increase of approximately 300 percent in the Mean Prospective Resources for the Oligocene reservoir in the Kurdamir Block to 1.2 billion barrels of oil ("Bbbl"), or 1.4 billion barrels of oil equivalent ("billion BOE") when gas and condensate are included, as shown in Table 1(c) below. For completeness, the corresponding petroleum initially-in-place estimates are also included in Table 1(d) below.
The Kurdamir-2 exploration well is currently drilling through the Eocene reservoir at a depth of approximately 3,114 metres and is encountering numerous oil shows. Operations, to date, remain on time and budget. WesternZagros anticipates that the deeper Eocene and Cretaceous reservoirs will be drilled and evaluated by the end of the second quarter of 2012. The Company is working with the operator, Talisman (K44) B.V. ("Talisman"), to examine additional testing options focused on the full 118 metres of gross oil pay in the Oligocene after the well has met the PSC commitments. The co-venturers are also planning a 3D seismic program and a further appraisal well to help determine the ultimate size of the Oligocene reservoir.
WesternZagros will host a conference call on Monday, April 23, 2012 to discuss the Sproule audited resource estimates. The investment community is invited to participate in the conference call, which will begin at 7:00 A.M. Mountain Standard Time (9:00 AM Eastern Standard Time). The news release announcing the Sproule audit results, updated Corporate Presentation and the Sproule Audit Letter will be posted to the Company website, www.westernzagros.com prior to the conference call. You may participate in the call by telephone at 416-340- 2217 or toll free at 1-866-696-5910 (pass code: 7276755).
A replay of the conference call will be available on the Company website, www.westernzagros.com, following the call. Also, a replay may be accessed by telephone at 905-694-9451 / 800-408-3053 (pass code: 7476696).
Sproule carried out its independent audit in accordance with the current guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Pursuant to the COGE Handbook, an audit is the process whereby an independent qualified reserves auditor carries out procedures designed to allow the auditor to provide reasonable assurance that a reporting issuer's reserves data (or specific parts thereof) have, in all material respects, been determined and presented in accordance with the COGE Handbook and are, therefore, free of material misstatement.
Tables 1(a) and 1(c), below, provide estimates of the gross unrisked contingent and prospective oil, and oil equivalent resources in all of the Kurdamir reservoirs, including this latest Sproule audit of the Oligocene reservoir.
Tables 1(b) and 1(d), below, provide estimates of the gross unrisked discovered (oil and gas) and undiscovered (oil) initially-in-place, included in this latest Sproule audit of the Oligocene reservoir of the Kurdamir structure.