WesternZagros Resources Ltd.
TSX VENTURE : WZR

WesternZagros Resources Ltd.

October 22, 2007 09:00 ET

WesternZagros Commences Trading Today

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros") is pleased to announce today that the Company's common shares (trading symbol "WZR") and warrants (trading symbol "WZR.WT") will begin trading on the TSX Venture Exchange. WesternZagros has issued and outstanding 170,057,183 common shares and warrants to acquire an additional 16,505,729 common shares.

"Today is the start of a new era for WesternZagros as we commence trading as an independent public company," said Fred Dyment, Executive Chairman. "We are extremely enthusiastic about the exploration potential within our EPSA area and believe it has the opportunity to add significant value for our shareholders and other key stakeholders, especially the people of the Kurdistan Region and all of Iraq."

"WesternZagros is well-positioned to deliver on the exploration potential with a dedicated and skilled team of professionals, approximately $100 million in cash and debt free as a result of the spin-out from Western Oil Sands and the private placement," commented Simon Hatfield, President. "We have completed 745 kilometres of our 2-D seismic program and identified a number of large structures from the new and previously obtained seismic data. Mobilization of a rig is underway in anticipation of spudding our first well in the first quarter of 2008."

WesternZagros is an international natural resources company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas. WesternZagros, through its wholly-owned subsidiaries, holds an Exploration and Production Sharing Agreement ("EPSA") with the Kurdistan Regional Government ("KRG") in the Kurdistan Region of Iraq. As previously announced, the KRG has requested conformity of the Company's EPSA with the KRG's published form of its standard production sharing contract. Certain additional adjustments to the EPSA terms continue to be requested, which, if implemented, could have an adverse impact on the Company's interests. No revisions to the EPSA terms have been agreed to at this point.

This news release may contain forward-looking information based on assumptions that are subject to a wide range of business risks. WesternZagros' operations are subject to all risks normally incident to the exploration, development and operation of crude oil and natural gas properties and the drilling of crude oil and natural gas wells, including geological risk, encountering unexpected formations or pressures, premature declines of reservoirs, potential environment damage, blow-outs, fires and spills, all of which could result in personal injuries, loss of life and damage to property of WesternZagros and others; environment risks; delay or changes in plans with respect to exploration or development projects or capital expenditures; the ability to attract key personnel; the risk of commodity price and foreign exchange rate fluctuations.

All of WesternZagros' assets are located in Kurdistan. As such, WesternZagros is subject to political, economic, and other uncertainties of that region as well as risks of loss due to civil strife, acts of war, guerrilla activities and insurrections. WesternZagros' operations may be materially adversely affected by changes in government policies and legislation or social instability and other factors which are not within its control. Risks also include the uncertainty involved in the estimation of undiscovered resources. For further information on WesternZagros and the risks associated with its business, please see the Western Oil Sands Inc. Information Circular dated September 14, 2007 which is filed at www.sedar.com.

Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. We caution readers and prospective investors of the Company's securities not to place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by WesternZagros.

Contact Information

  • WesternZagros Resources Ltd.
    Dorreen Miller
    Manager, Investor Relations & Communications
    (403) 233-1757