CALGARY, ALBERTA--(Marketwire - March 19, 2013) -
(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Crest Energy International LLC ("Crest") announces that it has acquired ownership of an additional 51,000,000 common shares ("Common Shares") in the capital of WesternZagros Resources Ltd. (the "Corporation" or "WZR") (TSX VENTURE:WZR) on March 18, 2013 pursuant to a non-brokered private placement financing (the "Private Placement") of Common Shares by the Corporation. The Common Shares were issued at a price of $1.25 per share for aggregate consideration paid by Crest of $63,750,000.
Prior to the Private Placement, Crest owned 40,714,286 Common Shares, representing approximately 9.9% of the Corporation's then outstanding Common Shares. After the Private Placement, Crest now beneficially owns, controls or has direction over, directly or indirectly, an aggregate of 91,714,286 Common Shares, representing approximately 19.8% of the Corporation's outstanding Common Shares.
Crest acquired the Common Shares pursuant to the Private Placement for investment purposes and may, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over Common Shares, through market transactions, private agreements, or otherwise.
The Private Placement was effected pursuant to the terms of an investment agreement (the "Investment Agreement") between Crest and the Corporation dated March 10, 2013. Pursuant to the Investment Agreement, Crest will continue to have certain rights to participate for its pro-rata share in future equity issuances by the Corporation. In addition to the statutory four month hold period, the Common Shares issued under the Investment Agreement will be subject to a contractual hold period until July 19, 2013. In addition, Crest obtained the right under the Investment Agreement to appoint an additional nominee to the Corporation's Board of Directors. Crest has elected to nominate John Howland to that position. Eric Stoerr, an officer of Crest, has been a member of the Corporation's Board of Directors since August 2012.
The head office of Crest is located at 600 Travis Street, Suite 6800, Houston, Texas.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.