WesternZagros Completes Test at Kurdamir-1 Well

Source: www.gulfoilandgas.com 11/8/2010, Location: Middle East

WesternZagros Resources Ltd. has successfully concluded the first cased hole test of the Lower Oligocene formation in the Kurdamir-1 exploration well.

The tested zone was between 2,365 meters and 2,415 meters. The test achieved a maximum flow rate, after acidization, of 18.3 million cubic feet per day of gas at a flowing wellhead pressure of 1,960 pounds per square inch with a maximum yield of 86 barrels of high quality, 62 degrees API natural gas liquids (condensate) per million cubic feet of gas. No formation water was recovered during the testing.

In addition, a mixture of light crude oil and condensate was recovered during the test prior to acidizing the formation. After acidizing the well, the Company interprets that the high gas flow rates and pressures prevented further oil flow. WesternZagros is planning to perform an additional cased hole test deeper in the Lower Oligocene to confirm the thickness of the oil leg below the gas and condensate.

"We are pleased by the high flow rates and rich condensate yield achieved from this test. It further confirms the world class nature of the Oligocene reservoir which can exhibit high test rates even from its lower quality zones," said Simon Hatfield, WesternZagros' Chief Executive Officer. "We're also very encouraged by the oil recovered, as it confirms the potential of an Oligocene oil leg in the Kurdamir structure."

An update of the analysis and future activities will be provided with the Company's third quarter financial release on November 18, 2010.


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