WesternZagros Provides Kurdamir-2 Operational Update

Source: www.gulfoilandgas.com 6/29/2012, Location: Middle East

WesternZagros Resources Ltd. Resources Ltd. is pleased to provide an operational update on drilling operations at the Kurdamir-2 well and on remediation efforts at the Sarqala-1 well.

Headlines:
- Kurdamir-2 well has reached total depth and penetrated 510 metres of naturally-fractured marlstones and limestones in the Cretaceous Shiranish reservoir. Oil shows were recorded throughout the interval.
- Remedial action to repair the operational issue at Sarqala-1 will be completed in 2 weeks.
- WesternZagros has reached 2 million man hours without a lost time incident.

Kurdamir-2 Exploration Well
The operator, Talisman (Block K44) B.V. (Talisman) and WesternZagros have informed the Kurdistan Regional Government that the well has reached final total depth of approximately 4,000 metres within the Cretaceous-age Shiranish reservoir. The Shiranish reservoir, as penetrated, was comprised of a gross interval of 510 metres of naturally-fractured marlstones and limestones. Oil shows with associated elevated mud gas readings were recorded over the entire Shiranish section penetrated. Wireline logging operations have commenced and upon conclusion, the wellbore will be cased with a 7" diameter production liner prior to the commencement of testing. The Company anticipates reporting test results of the Shiranish testing program throughout July and August. Cased hole testing programs are also being discussed with the operator for the previously cased Eocene and Oligocene reservoirs.

WesternZagros is also in discussions with the operator on extended well testing options following the completion of the Kurdamir-2 initial testing program. In addition, the parties are discussing the timing and location of the next appraisal well, Kurdamir-3.

Sarqala-1 Well
Remediation work is continuing at the Sarqala-1 well. The cause of the malfunction of the subsurface valve has been diagnosed and the necessary equipment and services have been procured to complete the remediation. WesternZagros anticipates that it could take up to two weeks in order to return the well to its former status.

Health, Safety and Environmental (HSE) Milestone
On June 3, 2012, WesternZagros's operations achieved 2 million man hours without a lost time incident. The dedication to safety demonstrated by all of the Company's employees and contractors has produced a world-class work safety culture.


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