AUG 1, 2012 - 12:00 ET
WesternZagros Welcomes Gazprom Neft as the Third Party Participant in the Garmian Block
CALGARY, ALBERTA--(Marketwire - Aug. 1, 2012) -
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WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") announces that it has been informed by the Kurdistan Regional Government ("KRG") that Gazprom Neft Middle East B.V. ("Gazprom Neft B.V."), has been assigned as the Third Party Participant ("TPP") for the Garmian Production Sharing Contract ("Garmian PSC"). WesternZagros is the operator of the Garmian Block, which contains the producing Sarqala-1 oil well, the Mil Qasim discovery and several promising but undrilled exploration prospects. Gazprom Neft B.V., is a wholly owned subsidiary of JSC Gazprom Neft, which is the oil producing affiliate of OAO Gazprom. JSC Gazprom Neft is headquartered in St. Petersburg, Russia, and is majority owned by OAO Gazprom.
Headlines:
- The KRG has chosen Gazprom Neft B.V. to be the Third Party Participant in the Garmian Block, with a 40 percent interest in the Garmian PSC. WesternZagros maintains its 40 percent interest.
- WesternZagros will receive an approximate amount of $83 million in back costs from Gazprom Neft B.V. in connection with the TPP assignment, with the net amount retained by WesternZagros being $56 million after reconciliation with the KRG.
- Operatorship will remain with WesternZagros until the commencement of the development period under the PSC.
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WesternZagros and Gazprom Neft B.V. will each fund 50 percent of costs on the Garmian Block effective from June 1, 2012.
Simon Hatfield, WesternZagros's Chief Executive Officer, commented:
"We look forward to advancing our Garmian exploration and appraisal program, where we have ha
