WesternZagros Resources Ltd.
TSX VENTURE : WZR

WesternZagros Resources Ltd.

May 17, 2010 07:47 ET

WesternZagros Kurdamir-1 Sidetrack Operational Update

CALGARY, ALBERTA--(Marketwire - May 17, 2010) -

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

WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") announces that, while attempting to stabilize the high pressure hydrocarbon zone encountered at Kurdamir-1 as previously announced, the well has had to be shut in. WesternZagros had drilled the Kurdamir-1 sidetrack hole through the Upper Aaliji Formation into the Lower Aaliji Seal to a depth of 3,214 metres. At that depth, higher than anticipated pressures were encountered and the Company had planned to set a 7-inch casing liner after stabilizing the well and running wireline logs. While attempting to stabilize the well, a section of the drill string failed, resulting in damage to the drilling mud circulating system and further hampering well control activities.

WesternZagros has activated its Emergency Response Teams both in Calgary and the Kurdistan Region of Iraq. Although there has been no release of hydrocarbons as a result of these events, hydrodgen sulphide (H2S) gas is present in the wellbore and the possibility exists for further equipment failure. WesternZagros has therefore taken the precaution of moving local inhabitants who are within its Emergency Planning Zone and all non-essential personnel to a safe location. WesternZagros has also engaged well service and control specialists Boots & Coots International Well Control, Inc., who are currently mobilizing personnel and equipment to the drilling site. It is expected that it will take at least thirty days to bring the well back under control.

"The safety of our employees, contractors and the local residents is our number one priority," said Simon Hatfield, CEO of WesternZagros. "We have an experienced team in place who are prepared for incidents such as this and we remain committed to providing a safe environment for the people in the area."

Kurdamir-1 is a wildcat exploration well located on the Kalar Bawanoor Block, in the Kurdistan Region of Iraq. WesternZagros is drilling the well with its co-venturers, the Kurdistan Regional Government and Talisman Energy Inc. Further operational updates will be provided as operations progress.

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; its joint venture partner's continued participation in the exploration activities under the PSC, the ability to attract key personnel; the risk of commodity price and foreign exchange rate fluctuations.

All of WesternZagros' assets are located in the Kurdistan Region of Iraq. 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 25, 2010 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.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information