WesternZagros Confirms Oil in Low Permeability Cretaceous Reservoir at Kurdamir-2, Flow Rates Low; TSXV Most Active, Shares Dip 6%

By MT Newswires,  October 12, 2012, 10:44:44 AM EDT

WesternZagros Resources Ltd. (WZR.V) has completed its testing program in the deepest of the three stacked reservoirs drilled by the Kurdamir-2 exploration well in the Kurdistan Region of Iraq. The testing confirmed an oil discovery in low permeability fractured limestones of the Cretaceous-age, Shiranish Formation, adding to the previously announced major oil discovery in the Oligocene reservoir. The Shiranish reservoir exhibited non-commercial flow rates in this location.

The combined audited unrisked mean estimate for all three reservoirs on the Kurdamir prospect is 1,609 million barrels of prospective oil resources as at May 31, 2012, 11 percent of which is attributed to the Cretaceous. The Company now expects this number for the Cretaceous to be revised downward, although it is not expected to materially change the estimate of prospective resources of the whole Kurdamir prospect.

Commenting on the Shiranish test results, WesternZagros's Chief Executive Officer Simon Hatfield said: "While we had hoped that the Shiranish reservoir might duplicate the tremendous results we saw in the Oligocene, we also knew that the characteristics of the Shiranish vary a great deal by location. Although we didn't achieve a commercial flow rate due to the tight nature of the Shiranish reservoir at Kurdamir -2, we did confirm it contains light oil. These test results add to the growing evidence that Kurdamir and the neighbouring Tophkana structure are in fact a giant shared structure with common oil accumulations. We look forward to the remainder of the Kurdamir-2 testing program, focusing on the shallower Eocene reservoir and our main target of the Oligocene reservoir."




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

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