WesternZagros Resources Ltd.

WesternZagros Resources Ltd.

October 25, 2011 14:57 ET

WesternZagros Closes $C46.6 Million Strategic Investment with TAQA

CALGARY, ALBERTA--(Marketwire - Oct. 25, 2011) -


WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has closed its previously announced strategic investment with the Abu Dhabi National Energy Company PJSC ("TAQA") whereby TAQA has purchased from WesternZagros, through a private placement, 74 million common shares of the Company at a price of Cdn$0.63 per share for gross proceeds of $46,620,000. TAQA now holds approximately 19.9 percent of the Company's issued and outstanding common shares. The common shares issued to TAQA are subject to resale restrictions under Canadian securities laws until February 26, 2012, as well as a contractual hold period until June 30, 2012, pursuant to the terms of the investment agreement (the "Investment Agreement") entered into between the Company and TAQA on October 16, 2011.

WesternZagros's Chief Executive Officer, Simon Hatfield said, "We are very pleased to close this financing with TAQA and pursue our stated objectives to achieve significant growth from the Company's well-positioned exploration Blocks. 2012 should be an exciting year for WesternZagros and all of its shareholders."

David Cook, TAQA Executive Officer and Head of Upstream, has been appointed to the WesternZagros Board of Directors. Mr. Cook has more than 20 years of experience in the upstream oil and gas sector through his previous positions at Amoco, BP, and TNK-BP. Prior to joining TAQA, David Cook was Vice President for BP Russia. He has held a variety of global technical, commercial and managerial positions based from the United States, United Kingdom, and Russia, as well as board directorships. He holds a BSc in Geophysics and a PhD in Geological Sciences from Michigan State University.

Fred Dyment, Chairman of the Board of WesternZagros, welcomed Mr. Cook, stating, "TAQA's investment in WesternZagros demonstrates a vote of confidence in our business plan. The entire Board looks forward to working with David Cook in the future."

The proceeds from the private placement to TAQA will be used towards WesternZagros's 2011/2012 capital and operating program. Pursuant to the Investment Agreement, WesternZagros has granted certain rights to TAQA to participate for its pro-rata share in future equity issuances by the Company.

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 two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".

About TAQA

Abu Dhabi National Energy Company (TAQA) is a global energy company majority owned by the Abu Dhabi Government and listed on the Abu Dhabi Securities Exchange. Main activities include their oil and gas business, power generation and water desalination across four continents. TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98 per cent of the water and electricity requirements in the Emirate of Abu Dhabi. TAQA's power plants are located in the United Arab Emirates, Morocco, Oman, Saudi Arabia, Ghana, India, and the United States. With operations in Canada, the United Kingdom, the Netherlands and the United States, TAQA's oil and gas business includes exploration and production, gas storage and pipeline transportation. Their entrepreneurial culture, along with a commitment to people, safety and the environment, has created strong foundations for the long-term sustainable growth of their business.

This news release contains certain forward-looking information relating, but not limited, to the expected use of proceeds from the private placement. Forward-looking information typically contains statements with words such as "anticipate", "plan", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. The Company cautions readers 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. Readers are also cautioned that disclosed test rates and AOFs may not be indicative of ultimate production levels. In addition, the forward-looking information is made as of the date hereof, and the Company assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.

Forward-looking information is not based on historical facts but rather on management's current expectations and assumptions regarding, among other things, plans for and results of drilling activity and testing programs, future capital and other expenditures (including the amount, nature and sources of funding thereof), continued political stability, and timely receipt of any necessary government or regulatory approvals. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by WesternZagros including, but not limited to, risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; interruptions in operations together with any associated insurance proceedings; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. For further information on WesternZagros and the risks associated with its business, please see the Company's Annual Information Form dated April 11, 2011, which is available on SEDAR at www.sedar.com.


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