CALGARY, ALBERTA--(Marketwire - Jan. 9, 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 provide an operational update for the drilling and testing operations at Mil Qasim-1 and Kurdamir-2, and the continued production from the Sarqala-1 extended well test.
Mil Qasim-1 Exploration Well (Garmian Block)
The Mil Qasim-1 well was cased to a depth of 2,129 metres and successfully drilled and wirelined logged to a final total depth of 2,425 metres. The planned testing program of the Upper Fars sandstone reservoir is ongoing. An initial open hole drillstem test (DST) conducted in the lowermost part of the wellbore successfully flowed oil to surface with no water. A second DST test is presently being performed in the Upper Fars within the lower part of the cased hole section. The Company plans to release final results from the testing program when it is completed.
Kurdamir-2 Exploration Well (Kurdamir Block)
The Kurdamir-2 exploration well has been drilled through the Lower Fars top seal to a depth of approximately 2,270 metres, where the third string of casing will be set above the Oligocene reservoir. Operations, to date, remain on time and on budget. WesternZagros anticipates that the drilling and testing of the Oligocene reservoir will occur in the first quarter of 2012, with the deeper Eocene and Cretaceous reservoirs expected to be drilled and tested by the end of the second quarter of 2012.
Sarqala-1 Extended Well Test (Garmian Block)
Oil production from the extended well test of Sarqala-1 continues uninterrupted, averaging over 4,000 bopd in December. This production is refined in local plants under the auspices of the Ministry of Natural Resources.
WesternZagros anticipated production from the extended well test to continue to increase in January and is currently increasing the tank capacity to optimize production and truck loading.
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 two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".
This news release contains certain forward‐looking information relating, but not limited, to operational information, future drilling and testing plans, future production rates and sales, and the timing associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "plan", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. The Company cautions readers 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. Readers are also cautioned that disclosed test rates and AOFs may not be indicative of ultimate production levels. In addition, the forward‐looking information is made as of the date hereof, and the Company assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.
Forward‐looking information is not based on historical facts but rather on management's current expectations and assumptions regarding, among other things, plans for and results of drilling activity and testing programs, future capital and other expenditures (including the amount, nature and sources of funding thereof), continued political stability, and timely receipt of any necessary government or regulatory approvals. Although the Company believes the expectations and assumptions reflected in such forward‐looking information are reasonable, they may prove to be incorrect. Forward‐looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by WesternZagros including, but not limited to, risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; interruptions in operations together with any associated insurance proceedings; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. For further information on WesternZagros and the risks associated with its business, please see the Company's Annual Information Form dated April 11, 2011, which is available on SEDAR at www.sedar.com.
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