MAY 7, 2010 - 07:30 ET
WesternZagros Provides Kurdamir-1 Oil Analysis Results and Sidetrack Operational Update
CALGARY, ALBERTA--(Marketwire - May 7, 2010) -
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WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") is pleased to announce positive results of geochemical analysis from Kurdamir-1 oil samples. Weatherford Laboratories in Houston conducted an independent analysis of a series of oil samples extracted from drilling fluids from the Kurdamir-1 wellbore in the original 8-1/2" hole section. An Aaliji Formation oil sample has yielded a high quality crude oil with an API gravity of 31 degrees. Several additional oil samples from the deeper Shiranish and Kometan Formations are of similar quality. Oil in the drilling mud reached four percent by volume while drilling these formations.
Sidetrack Drilling Status
WesternZagros has drilled the Kurdamir-1 sidetrack 8-½" hole, which is approximately 100 m from the original wellbore, through the Upper Aaliji Formation into the Lower Aaliji Seal as planned to a current depth of 3214m. Higher than anticipated pressures were encountered at this depth. A 7 inch casing liner will be set just above this high pressure zone after stabilizing the well and running wireline logs to determine future well test intervals. Drilling will then continue through the Shiranish/Kometan Formations to a total depth of approximately 3800-3900m as originally announced. Upon successfully reaching total depth, WesternZagros intends to run wireline logs in the hole and run a 4-1/2 inch liner prior to commencing a cased hole testing program in the reservoirs within the Kometan, Shiranish and Upper Aaliji Formations.
Sidetrack operations have been impacted by delays in receiving supplies to the rig due to recent weather conditions, including volcanic ash over Europe that disrupted air cargo and heavy rains in the Kurdistan Region of Iraq that impeded road transportation. "While the interruptions caused by Mother Nature are frustrating and time consuming, our resolve to complete the testing at Kurdamir-1 continues. Our optimism is reinforced by the positive result of the recent analysis of the oil and gas shows in the Aaliji, Shiranish and Kometan Formations," said Simon Hatfield, WesternZagros' Chief Executive Officer.
Insurance Claim Update
WesternZagros continues to advance its insurance claim relating to both the control of well costs incurred in the original 8-1/2" hole section and the redrill costs associated with the sidetrack. WesternZagros has provided the first interim claim to its insurers, and is compiling other costs as they are paid in order to make subsequent claims. No amounts to date have been received by WesternZagros relating to this claim.
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 WesternZagros progresses the sidetrack operations.
