WesternZagros Resources Ltd.

WesternZagros Resources Ltd.

October 25, 2007 11:42 ET

WesternZagros EPSA Review Update

CALGARY, ALBERTA--(Marketwire - Oct. 25, 2007) -


WesternZagros Resources Ltd. (TSX VENTURE:WZR) and warrants (WZR.WT) ("WesternZagros"), as previously disclosed, is continuing discussions with the Minister of Natural Resources of the Kurdistan Regional Government ("KRG") with respect to various amendments that have been requested to the existing contractual terms of the Exploration and Production Sharing Agreement ("EPSA"). The amendments now proposed by the Minister include a reduction in the working interest held by WesternZagros and additional bonus payments. WesternZagros cannot determine the outcome of these discussions at this time. If these proposed amendments were to be implemented, they would have an adverse impact on the Company's interest.

About WesternZagros Resources Ltd.

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 EPSA with the KRG in the Kurdistan Region of Iraq.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • WesternZagros Resources Ltd.
    Greg Stevenson
    Vice President, Finance
    (403) 233-1716
    WesternZagros Resources Ltd.
    Dorreen Miller
    Manager, Investor Relations & Communications
    (403) 233-1757