WesternZagros Tests Three Wells in Garmian Block

Source: www.gulfoilandgas.com 12/12/2011, Location: Middle East

WesternZagros Resources Ltd. is pleased to provide an operational update for the drilling operations at Mil Qasim-1 and Kurdamir-2, and the continued ramp up of production from the Sarqala-1 extended well test.

Sarqala-1 Extended Well Test
Production from the Sarqala-1 extended well test has continued to increase with the addition of tank capacity and the construction of a new weighbridge at site. Gross production to the end of November totalled 96,000 barrels of oil that was sold into the domestic market. WesternZagros anticipates December production from the extended well test of approximately 124,000 barrels (4,000 barrels per day), and has recently achieved a daily production of over 5,000 barrels per day. To date, WesternZagros has received approximately $13 million for crude oil sales from the extended well test, including $7.9 million prepaid by the buyer for the anticipated December sales volumes.

Mil Qasim-1 Exploration Well
WesternZagros has started the testing program at the Mil Qasim-1 well after successfully drilling to a total depth of 2,425 metres. The Company had a number of hydrocarbon shows, both oil and gas, while drilling through the Upper Fars. Wireline logs have been run over this interval, and WesternZagros has identified approximately 100 metres of potential net sandstone reservoir from these logs. The Company anticipates initial results from this testing program to be available by the end of December.

Kurdamir-2 Exploration Well
The Kurdamir-2 exploration well has been drilled to a depth of approximately 1,790 metres, where the second intermediate string of casing is currently being cemented. The Kurdamir-2 exploration well will now be drilled through the Lower Fars top seal to a depth of approximately 2,250 metres, at which depth the third intermediate string of casing is anticipated to be set just above the Oligocene reservoir. WesternZagros anticipates that the drilling and testing of the Oligocene reservoir may 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.


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