WesternZagros Starts Kurdamir-3 Testing Program

Source: www.gulfoilandgas.com 7/18/2013, Location: Middle East

WesternZagros Resources Ltd. (WZR) (WesternZagros) is pleased to provide the following operational update of testing, drilling and seismic operations on the Kurdamir and Garmian Blocks:

- The Kurdamir-3 well has reached total depth and started the testing program on the well;
- The Kurdamir Block 3D seismic survey is completed and the northern Garmian Block 3D seismic survey is expected to begin in August.

Commenting on the status of the Kurdamir-3 drilling program, Simon Hatfield, Chief Executive Officer of WesternZagros said: "Everything we have seen while drilling the Kurdamir-3 well supports our optimism about the size of the Oligocene reservoir in the giant Kurdamir oilfield. The Oligocene is thicker in the Kurdamir-3 well than penetrated in the Kurdamir-1 and Kurdamir-2 wells. We did not see gas at the top of the oil interval, nor did we encounter water at the bottom. We look forward to the results of the testing program."

Kurdamir Block - Kurdamir-3 Well
A cased hole, multiple test program of the Oligocene reservoir in the Kurdamir-3 well has commenced. The Operator, WesternZagros's co-venturer, Talisman (Block K44) B.V. (Talisman) drilled the well to a total depth of 2,895 metres and has set casing within the Tertiary-age Oligocene reservoir. The well is located five kilometres southwest and down-dip of the Kurdamir-2 well in what the co-venturers interpret to be a thicker portion of the Oligocene reservoir. The Kurdamir-3 well successfully penetrated the oil column without encountering the gas cap.

Oil shows and supportive log data indicative of oil were recorded over the majority of the Kurdamir-3 Oligocene section penetrated. The Oligocene comprises a gross interval of 372 metres of naturally-fractured marlstones and dolomitic limestones including an interpreted 194 metres of porous reservoir interval. By comparison, the Kurdamir-2 well penetrated a gross interval of 300 metres of which 140 metres comprises the Oligocene porous interval. Coring and wireline logging operations have concluded and the wellbore is cased with a seven inch diameter production liner in preparation for testing. No evidence of formation water has been detected.

The first well test at Kurdamir-3 will perforate the deepest interval between 2,776 and 2,788 metres. Based on initial logging results, the Company believes that the lowest known oil could extend approximately 150 metres deeper than that proven in Kurdamir-2. The testing program will then move up-hole to focus on testing the potential of the porous reservoir section. The Company expects to complete the Oligocene testing program in the second half of August.

Kurdamir 3D Seismic Surveys
The acquisition of the Kurdamir Block 3D seismic survey, which comprises 184 square kilometres, has been completed in order to define more clearly the areal extent of the Oligocene, Eocene and Cretaceous reservoirs. Following the completion of seismic operations on the Operator's neighbouring block, the seismic crew will commence a new 3D seismic survey on the northern portion of the Garmian block in August.

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