WesternZagros Resources Ltd.

WesternZagros Resources Ltd.

November 08, 2010 09:53 ET

WesternZagros Completes Successful Test at Kurdamir-1 Well

CALGARY, ALBERTA--(Marketwire - Nov. 8, 2010) -


WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has successfully concluded the first cased hole test of the Lower Oligocene formation in the Kurdamir-1 exploration well.

The tested zone was between 2,365 metres and 2,415 metres. The test achieved a maximum flow rate, after acidization, of 18.3 million cubic feet per day of gas at a flowing wellhead pressure of 1,960 pounds per square inch with a maximum yield of 86 barrels of high quality, 62 degrees API natural gas liquids (condensate) per million cubic feet of gas. No formation water was recovered during the testing.

In addition, a mixture of light crude oil and condensate was recovered during the test prior to acidizing the formation. After acidizing the well, the Company interprets that the high gas flow rates and pressures prevented further oil flow.

WesternZagros is planning to perform an additional cased hole test deeper in the Lower Oligocene to confirm the thickness of the oil leg below the gas and condensate.

"We are pleased by the high flow rates and rich condensate yield achieved from this test. It further confirms the world class nature of the Oligocene reservoir which can exhibit high test rates even from its lower quality zones," said Simon Hatfield, WesternZagros' Chief Executive Officer. "We're also very encouraged by the oil recovered, as it confirms the potential of an Oligocene oil leg in the Kurdamir structure."

An update of the analysis and future activities will be provided with the Company's third quarter financial release on November 18, 2010.

For further details on WesternZagros Resources Ltd., please refer to the November 2010 Corporate Presentation available on the WesternZagros website: http://www.westernzagros.com/documents/WZRCorporatePresentationNovember2010.pdf

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. The Company, 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 contains certain forward-looking information relating, but not limited, to operational information, future drilling plans and testing programs and the timing and costs associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "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 potential production rates 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, future capital and other expenditures (including the amount, nature and sources of funding thereof), continued political stability, timely receipt of any necessary government or regulatory approvals, the continued participation of the Company's co-venturers in exploration activities and the timely receipt of any insurance proceeds due to the Company. 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), risks associated with resource estimates, 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 March 24, 2010 which is available at www.sedar.com.


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