| March 29, 2011 |
| WesternZagros Begins Drilling Sarqala-1 Sidetrack |
CALGARY, ALBERTA--(Marketwire - March 29, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has begun drilling the planned sidetrack in the Sarqala-1 well in the Kurdistan Region of Iraq. The Company intends to drill a 100 metre sidetrack from the cased wellbore to test the Jeribe reservoir. Results from the drilling and testing program are anticipated in mid April, 2011. The Company originally drilled Sarqala-1 in 2008 and early 2009, suspending the well after equipment problems prevented logging. Subsequent analysis of the drilling cuttings from, and wireline well logs across, the Jeribe Formation showed good oil potential and led to the decision to re-enter the well bore and to undertake the current sidetrack operation.
"We're entering a very exciting phase in WesternZagros' development," commented Simon Hatfield, the Company's Chief Executive Officer. "Having fulfilled our near term financial requirements and applied lessons learned from our first two wells, we are now anticipating the testing program at Sarqala-1, to be quickly followed by drilling our Mil Qasim exploration well on the adjacent structure."
Prior to commencing the sidetrack, WesternZagros undertook repairs related to a minor casing leak located approximately half way down the well. The analysis of the oil leaking into the casing indicated it is 42.5 degrees API. The gross cost of these repair operations is estimated to be approximately US$10 million.
The Company is currently funding the Sarqala-1 sidetracking and testing as an exclusive operation, which requires WesternZagros to fund 100 percent. The Company expects the gross costs associated with sidetracking and testing operations to be in the range of US$9 to 11 million.
For further details on WesternZagros Resources Ltd., please refer to the March 2011 Corporate Presentation available on the WesternZagros website at www.westernzagros.com.
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 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 on SEDAR at www.sedar.com.
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