WesternZagros Resources Ltd

NOV 6, 2009 - 18:49 ET

WesternZagros Announces 2009 Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 6, 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 report its results for the three and nine month period ended September 30, 2009 and key highlights and activities to date.

- Kurdamir-1 has reached an intermediate depth of 2,700 metres, and has drilled through the Oligocene and Pilaspi/Jaddala reservoir targets in the Tertiary interval. Logging and coring activities were completed in the Tertiary interval and two open hole drill stem tests conducted. The forward plan is to drill the well deeper to test the Cretaceous reservoir targets.

- Two cores were cut between 2,305 metres and 2,332 metres which exhibited hydrocarbon shows. Logging results indicated a gross hydrocarbon pay of 168 metres penetrated from the top of the porous Tertiary carbonate reservoir at 2,144 metres to the base of the porous reservoir at 2,312 metres.

- Two drill stem tests were conducted between 2,195 metres and 2,235 metres and between 2,280 metres and 2,352 metres. Combined test rates indicate approximately 27.5 million cubic feet per day of gas and 1,172 barrels per day of 61 degree API natural gas liquids (condensate). Test rates were limited due to testing equipment restrictions; however, initial well test analysis conducted by an independent third party indicates that reservoir production potential of approximately 52 million cubic feet per day of gas and 2,240 barrels per day of condensate could be expected from these intervals.

- WesternZagros is currently working with its external evaluators in order to provide resource estimates associated with the Tertiary interval at Kurdamir-1. These results will be forthcoming once this work has been completed.

- The Kurdamir-1 well has encountered drilling related challenges due to wellbore instability in fractured carbonates which resulted in the need to undertake two sidetrack operations.

- As at September 30, 2009, WesternZagros had $79.4 million in working capital, including cash and cash equivalents and the non-cash working capital deficiency.

- For the three month period ended September 30, 2009, WesternZagros incurred capital expenditures of $11.5 million related to its 60 percent funding requirement for its PSC activities and certain payments required under the PSC.

- WesternZagros had a net loss of $2.7 million for the quarter, mainly comprised of the general and administrative expenses incurred by the Company.

- At September 2009, WesternZagros' operations achieved a combined total of 3.7 million person hours with no Lost Time Incidents.

- During the third quarter of 2009, WesternZagros and its co-venturers continued to focus on three key corporate social responsibility (CSR) initiatives in the Garmian region of Kurdistan - water supply and management, education and health care. In particular, during the peak of the drought, CSR activities focused extensively on providing potable water to villages near Kurdamir-1 and within the PSC block. Three new water wells were drilled, five wells were repaired, emergency water tanker relief was provided to seven villages and water sumps or irrigation channels were dug in 15 villages.

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") reviews WesternZagros Resources Ltd.'s ("WesternZagros" or the "Company") financial condition, activities and results of operations for the period ended September 30, 2009. It should be read in conjunction with the unaudited financial statements for the period ended September 30, 2009, the audited financial statements for the year ended December 31, 2008 and the related notes prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). The effective date of this MD&A is November 6, 2009. All references herein to $ are in United States dollars.