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WesternZagros Updates on Kurdamir-1 Operations

Source: www.gulfoilandgas.com 6/11/2010, Location: Middle East

WesternZagros Resources Ltd. has received confirmation of well control insurance coverage and approval for the first interim payment of $5.7 million from 100% of the insurance syndicate. The Company has received proceeds of $4.8 million to date. The Company continues to submit interim insurance claims related to the well control and sidetracking efforts at its Kurdamir-1 well.

With the well now secure, local residents who were previously evacuated from the nearby Kurdamir village as a safety precaution are now able to return to their homes.

Specialists from Boots & Coots, together with personnel from WesternZagros and Talisman (Block K44) B.V., are currently installing the snubbing unit in order to attempt to recover the remaining drill string from the well and complete well kill operations.

Kurdamir-1 is a wildcat exploration well, located on the Kalar Bawanoor Block, in the Kurdistan Region of Iraq. WesternZagros is drilling the well with its co-venturers, the Kurdistan Regional Government (KRG) and Talisman (Block K44) B.V.

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