WesternZagros has announced revenues of $30,000 for the third quarter of 2012, a $10,000 increase sequentially.
The company reported net losses of $2.7 million, while total assets rose from 329.66 million to 395.60 million sequentially. It also has a working capital of $114 million for the end of Q3, 2012.
WesternZagros has been heavily involved in the exploration of oilfields around the Kurdistan region, the company holds two Production Sharing Contracts with the Kurdistan Regional Government.
The company has also announced a number of developments within its operations including: Increased flow rates of up to 3,450 barrels per day (“bbl/d”) of light, 38 degree API oil and 8.8 million cubic feet (“MMcf/d”) of natural gas from the 20 metre perforated interval, the first and deepest of the three planned cased-hole tests in the Oligocene reservoir of Kurdamir-2. The final rate was achieved on a 72/64″ choke with a wellhead flowing pressure of 810 psi.
The company also restarted its extended well test (“EWT”) production from the Sarqala-1 well. Sarqala-1 is now producing approximately 5,000 bbl/d of oil, which is being trucked from Sarqala to Khurmala and delivered into the export market. Payment terms are expected in accordance with the September 13, 2012 Oil Agreement between the Federal Government and the KRG.
The company began conducting a 2D and 3D seismic acquisition program over the Sarqala, Mil Qasim, Zardi complex and Chwar structures which is anticipated to finish mid-March, 2013. It also confirmed an Oil discovery in the Eocene reservoir at Kurdamir-2. A single cased-hole test was performed over a net perforated interval of 108 metres and resulted in the flow of light, 45 degree API oil at sub-commercial flow rates.
“During the third quarter, we successfully increased our funding for our aggressive exploration program. We look forward with great anticipation to the additional testing results from the Kurdamir-2 well and an active upcoming year as we secure drilling rigs and long lead items to advance the Hasira, Baram, Upper Bakhtiari and Kurdamir wells in 2013. The recent re-commencement of the Sarqala EWT has achieved a new operational milestone for the Company as we have now produced over 1 million barrels of oil,” said WesternZagros’s chief executive officer, Simon Hatfield.
WesternZagros’ Kurdamir PSC is to end December 31, 2014 and its Garmian PSC by September 1, 2014, after which the development process will begin. On the Kurdamir Block, the company’s focus will be continued appraisal drilling to delineate the estimated billion plus barrels of mean prospective resources and the existing estimated 147 million barrels of mean contingent resources. On the Garmian Block, the Company is planning to workover the Sarqala-1 well in the second quarter of 2013 in order to allow future production to increase beyond the current 5,000 barrels per day.
The company’s prospects targeted for 2013 are the Jeribe and Oligocene in Hasira-1, the Oligocene in Baram-1 and the Upper Bakhtiari in the Mil Qasim shallow three well programme.
WesternZagros is a Calgary-based international oil and gas company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq.
