The Abu Dhabi National Energy Company PJSC (TAQA), has confirmed a strategic investment agreement with WesternZagros Resources. Under the agreement, TAQA will purchase, through a private placement, 74 million common shares for gross proceeds of around US$46 million. When this placement is completed, TAQA will own approximately 19.9% of the WesternZagros shares.
Carl Sheldon, General Manager of TAQA, said “This investment in WesternZagros reflects our focus on developing TAQA’s footprint in the MENA (Middle East-North Africa) region. TAQA brings technical and operational expertise and a proven track record in developing challenging oil and gas projects, while WesternZagros has already built successful operations in the Kurdistan region of Iraq. We believe that the fit between these complementary strengths will yield the potential for significant added value through future developments.
WesternZagros’s Chief Executive Officer, Simon Hatfield adds, “This landmark agreement represents a significant leap forward for us. TAQA is an excellent strategic investor for WesternZagros given their proven track record, their support for our direction and their deep knowledge of our operating region. We are excited about the opportunities we are pursuing in the next twelve months, including further appraisal of the Sarqala and Kurdamir discoveries, and exploration drilling at Mil Qasim. We remain confident that our conservative, step-wise approach to realizing the full potential of our exceptional exploration assets will deliver results for our shareholders in the future.”
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