WesternZagros Resources Ltd.
TSX VENTURE : WZR

WesternZagros Resources Ltd.

May 12, 2009 16:20 ET

WesternZagros Announces Resource Assessment for Block 44 in the Kurdistan Region of Iraq

CALGARY, ALBERTA--(Marketwire - May 12, 2009) -

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

WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") is pleased to announce that Sproule International Ltd. ("Sproule") has completed an independent audit which confirms the Company's resource assessment for Block 44 (the Kalar-Bawanoor Block). WesternZagros' best estimate of gross unrisked prospective oil resources in Block 44 is 2.4 billion barrels as of March 31, 2009. The estimate is based on a portfolio of over 20 prospects and leads in both the Tertiary and Cretaceous reservoirs. Additional information obtained from future drilling activity or additional seismic data may result in a change to this assessment.

Sproule carried out its audit in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Those standards require that prospective resource estimates are prepared in accordance with the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook"). In Sproule's opinion, WesternZagros' estimates were determined in accordance with industry practice and the guidelines and definitions contained in the COGE Handbook.



Oil resources in Block 44 are expressed in the table below as a range of
estimates.

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Gross Undiscovered and Prospective Resources (Unrisked)(1) (6)
Block 44
(As of March 31, 2009)
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Oil (Millions of Barrels)
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Category Low Best High
Estimate Estimate Estimate Mean
P90(2) P50(3) P10(4) Estimate(5)
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Undiscovered
Petroleum Initially
In Place 4,460 6,419 9,129 6,651
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Prospective Resources 1,615 2,392 3,462 2,475
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Undiscovered petroleum initially in place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as "prospective resources," the remainder as "unrecoverable."

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The chance of commerciality is the product of these two risk components. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources.

Prospective oil resources are undiscovered resources that indicate exploration opportunities and development potential in the event a commercial discovery is made and should not be construed as reserves or contingent resources. The foregoing estimates have not been risked for chance of discovery or chance of development. WesternZagros estimates that the leads and prospects identified would each have a chance of discovery ranging from a high of over 80 percent to a low of less than 10 percent, with an average of 40 percent.

This resource disclosure coincides with the filing on SEDAR at www.sedar.com of a material change report, which includes the following additional information: the risks and level of uncertainty associated with the discovery and recovery of the resources, the risks and uncertainties relating to the development of any discovered resources, and the significant positive and negative factors relevant to the estimates.

WesternZagros has also updated its corporate presentation. The presentation can be viewed on the Company's web site at www.westernzagros.com/investors/presentations.html.

Notes to the table:

(1) These are the gross volumes estimated for the block, without any adjustments for working interest or encumbrances.

(2) Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.

(3) Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater of less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.

(4) High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

(5) Mean Estimate is the average from the probabilistic assessment.

(6) The gross undiscovered and prospective resource estimates are based on a portfolio of over 20 prospects and leads in both the Tertiary and Cretaceous reservoirs. It does not include an estimate of those prospective resources in the reservoir intervals drilled in Sarqala-1.

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 in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds a Production Sharing Contract with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros' shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".

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 WesternZagros' Annual Information Form dated March 26, 2009 which is filed at www.sedar.com and on the Company's web site.

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.

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