OTCPK:WSRLF - Post by User
Post by
Sheepshapeon Aug 22, 2013 9:03am
413 Views
Post# 21688870
Conference Call - Questions
Conference Call - QuestionsThe Conference Call last December allowed questions to be submitted by email. That option does not seem to be available this time - participation only by telephone ...? Anyways, my phone access is not good at my location .. so I hereby invite anyone 'local' to ask the following:
1. Following the Kurdamir-2 well results, which found Lowest Known Oil (LKO) at -2016 m SS, Western Zagros made a resource evaluation at Kurdamir whereby the P90 resource corresponded to an OWC at -2518 m SS, and the P50 resource to an OWC at -2986 m SS. Now that water has been produced from the Kurdamir-3 well, at a similar sub-sea depth as the deepest Kurdamir-2 test, (-2016 m SS), would you not agree that it was technically fallacious to propose P90 and P50 resources based on unsubstantiated OWC levels? It would have been more prudent for at least the P90, and perhaps also the P50, to have been based on known well data (LKO at -2016 m SS).
Western Zagros' current Kurdamir resource evaluation relies on the massive assumption that the OWC is over 500 metres deeper (P90), and nearly 1000 metres deeper (P50), than the known LKO measured at Kurdamir-2. The latest Kurdamir-3 well results, showing produced water at a similar sub-sea depth as the deepest Kurdamir-2 test, may warrant a drastic downward revision of both Kurdamir and Baram propective resources. A drastic downward revision is a direct consequence of the massive assumptions in the previous resource evaluation.
2. Can Western Zagros warrant that the Capacity Building Payment will remain at the level of 3%, even in the event of a 'change of control' of the Company (e.g. in the event of a take-over of the Company)?
The background to this question relates to the failed Heritage-Genel merger whereby it emerged that a change of control of Genel triggered a Capacity Building Payment of approximately US$ 1.1 billion. It would seem that this massive payment was then subsequently converted to a 30% Capacity Building Charge on the profit oil for all of Genel's licenses following the eventual merger with Vallares.
Sheep shape