WesternZagros Declares Commercial Discovery at Kurdamir

NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: WesternZagros Resources Ltd. 
TSX VENTURE SYMBOL:  WZR 
AUGUST 20, 2014 
WesternZagros Declares Commercial Discovery at Kurdamir 
First horizontal development well expected in Q4 2014 
CALGARY, ALBERTA--(Marketwired - Aug. 20, 2014) -  
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES 
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or
"the Company") and its co-venturer, Talisman (Block K44) B.V.
("Talisman"), have submitted a Declaration of Commercial Discovery
("DoC") to the Kurdistan Regional Government ("KRG") for
the oil and gas discovery in the Kurdamir Block. A phased development plan,
outlining future production wells, facilities and supporting infrastructure, is
under preparation for submission to the KRG.  
"This is a long anticipated, important milestone for WesternZagros as well
as the Kurdistan Region. We estimate the Kurdamir block to hold nearly 1
billion barrels of oil equivalent (BOE) of contingent resources on a mean
basis. In addition, the three stacked reservoirs in Kurdamir hold significant
upside potential, of an additional estimated 1.6 billion BOE of prospective
resources on a mean basis. Declaring Kurdamir as a commercial discovery is
another key step as we continue our evolution from an explorer to a producer
and towards generating cash flow," said Simon Hatfield, WesternZagros
Chief Executive Officer. 
Future expansion phases will be determined by the success of the first phase of
the development drilling campaign. The co-venturers are advancing plans for the
first horizontal development well with an anticipated spud date in Q4 2014,
subject to KRG approval. 
The DoC submission was accompanied by an Appraisal Report, which reflects the
work conducted during an exploration and appraisal program on the Kurdamir
field that began in 2009 and concluded in May 2014. The program consisted of
acquiring 2D and 3D seismic, drilling three exploration wells, performing
numerous formation tests and carrying out an extended well test
("EWT"). Positive results from the Kurdamir-2 EWT were a key
component in advancing the DoC.  
WesternZagros currently holds a 40 percent working interest in the Kurdamir
Block. Talisman holds a 40 percent working interest and is the operator, while
the KRG holds the remaining 20 percent.  
About WesternZagros Resources Ltd. 
WesternZagros is an international natural resources company focused on
acquiring properties and exploring for, developing and producing crude oil and
natural gas in Iraq. WesternZagros, through its wholly-owned subsidiaries,
holds a 40 percent working interest in two Production Sharing Contracts with
the Kurdistan Regional Government in the Kurdistan Region. 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 future submission of development plans, future drilling plans,
the timing associated with such plans and future production potential.
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 results are not necessarily indicative
of long-term performance or of ultimate recovery. 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, continued security in the
Kurdistan Region, a return to normal industry conditions in the Kurdistan
Region, the resumption of operations on the Kurdamir block, timely receipt of
any necessary government or regulatory approvals, the Company's continued
ability to employ qualified staff and to obtain equipment in a timely and cost
efficient manner, the participation of the Company's co-venturers in joint
activities and the ability to sell any future production and the prices to be
received in connection therewith. 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 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, the risk of adverse
determinations by governmental authorities, the risk of arbitrating and
enforcing claims against entities that may claim sovereignty and other risks
associated with international activity, including the lack of federal petroleum
legislation and ongoing political disputes in Iraq and recent terrorist
activities in Iraq in particular. For further information on WesternZagros and
the risks associated with its business, please see the Company's Annual
Information Form dated March 13, 2014 ("AIF") which is available on
SEDAR at www.sedar.com. 
In addition, statements relating to "resources" contained herein are
deemed to be forward-looking statements, as they involve the implied
assessment, based on certain estimates and assumptions that the resources
described can be economically produced in the future. Terms related to resource
classifications referred to herein are based on the definitions and guidelines
in the Canadian Oil and Gas Evaluation Handbook which are as follows.
"Prospective resources" are those quantities of petroleum estimated,
as of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects. Prospective
resources have both an associated chance of discovery (geological chance of
success) and a chance of development (economic, regulatory, market, facility,
corporate commitment or political risks). The chance of commerciality is the
product of these two risk components. The estimates referred to herein have not
been risked for either the chance of discovery or the chance of development.
There is no certainty that any portion of the prospective resources will be
discovered. If a discovery is made, there is no certainty that it will be
developed or, if it is developed, there is no certainty as to the timing of
such development or that it will be commercially viable to produce any portion
of the prospective resources. "Contingent resources" are those
quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology or technology
under development, but which are not currently considered to be commercially
recoverable due to one or more contingencies. Contingent resources have an
associated chance of development (economic, regulatory, market and facility,
corporate commitment or political risks).  
The contingent resources estimates referred to herein have not been risked for
the chance of development. There is no certainty that the contingent resources
will be developed and, if developed, there is no certainty as to the timing of
such development or that it will be commercially viable to produce any portion
of the contingent resources. The resource estimates presented are gross volumes
for the indicated reservoirs, without any adjustment for the Company's
working interest or encumbrances. A barrel of oil equivalent (BOE) is
determined by converting a volume of natural gas to barrels using the ratio of
6 thousand cubic feet (Mcf) to one barrel. BOEs may be misleading, particularly
if used in isolation. A BOE conversion ratio of 6 Mcf:1 BOE is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. Given that the value
ratio based on the current price of oil as compared to natural gas is
significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value. The
Company's Statement of Oil and Gas Information contained in the AIF
contains additional detail with respect to the Company's resource
assessments and includes the significant risks and uncertainties associated
with the estimates and the recovery and development of the resources, and the
specific contingencies which prevent the classification of the contingent
resources as reserves. In addition, total or combined mean estimates of
resources which are presented herein are an arithmetic sum of the mean
estimates for individual reservoirs and each such individual mean estimate is
the average from the probabilistic assessment that was completed for the
reservoir. Readers should refer to the AIF and the material change report for a
detailed breakdown of the high (P10), low (P90) and best (P50) estimates for
each of the individual reservoir assessments. 
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE 
WESTERNZAGROS RESOURCES WAS RECOGNIZED AS A TSX VENTURE 50(R) COMPANY IN 2012
AND 2013. TSX VENTURE 50 IS A TRADE-MARK OF TSX INC. AND IS USED UNDER LICENSE. 
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FOR FURTHER INFORMATION PLEASE CONTACT: 
WesternZagros Resources Ltd.
Greg Stevenson
Chief Financial Officer
(403) 693-7007
or
WesternZagros Resources Ltd.
Tony Kraljic
VP Business Development
(403) 693-7011
or
WesternZagros Resources Ltd.
Lisa Harriman
Manager of Investor Relations
(403) 693-7017
investorrelations@westernzagros.com
or
Smithfield Group
John Kiely
+44 (0) 20 7360 4900
jkiely@smithfieldgroup.com
or
Smithfield Group
James McFarlane
+44 (0) 20 7360 4900
Jmcfarlane@smithfieldgroup.com
or
Smithfield Group
Brett Jacobs
+44 (0) 20 7360 4900
bjacobs@smithfieldgroup.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  OEX 
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-0- Aug/20/2014 11:30 GMT
 
 
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