WesternZagros Resources (CVE:WZR) shares hiked almost 10 per cent Friday, as the company revealed its Kurdamir-2 well in Iraq continues to show oil at total depth, and said that its Sarqala-1 well should be operational in two weeks.
The company’s shares were trading at 91 cents as at 1:10 pm EDT.
WesternZagros noted that it and the operator at Kurdamir-2, Talisman Energy (TSE:TLM),
have informed the Kurdistan Regional Government that the well has
reached final total depth of approximately 4,000 metres within the
Cretaceous-age Shiranish reservoir.
The companies are currently
in discussions regarding extended well testing options following the
completion of the Kurdamir-2 initial testing program. In addition, the
parties are discussing the timing and location of the next appraisal
In an operational update, the company said its
Kurdamir-2 well penetrated 510 metres of naturally-fractured marlstones
and limestones in the Cretaceous Shiranish reservoir.
with associated elevated mud gas readings were recorded over the entire
Shiranish section, said the oil and gas company, adding that wireline
logging operations have commenced and upon conclusion, the wellbore will
be cased with a 7" diameter production liner prior to the commencement
WesternZagros said it anticipates reporting test results of the Shiranish testing program throughout July and August.
Cased hole testing programs are also being discussed with Talisman for the previously cased Eocene and Oligocene reservoirs.
At the company’s Sarqala-1 well in the Kurdistan region of Iraq, remediation work is continuing.
noted that the cause of the malfunction of the subsurface valve has
been diagnosed and the necessary equipment and services have been
procured to complete the remediation. The company anticipates that it
could take up to two weeks in order to return the well to its former
In other news, WesternZagros’s operations achieved 2 million man hours without a lost time incident on June 3.
is an international natural resources company engaged in acquiring
properties and exploring for, developing and producing crude oil and
natural gas in Iraq.
Earlier this month, the company announced it
had more than doubled its mean prospective resources in a revised
assessment of the Eocene reservoir at the Kurdamir-2 exploration well.
revised mean prospective resource is now 278 million barrels of oil
(MMbbl) as of June 1, 2012, compared to the 124 MMbbl reported
previously, said the company.
The Eocene reservoir is the second of the three targeted reservoirs in the Kurdamir-2 well, which is currently being drilled.
April, WesternZagros increased its mean prospective resources in the
Oligocene reservoir at its Kurdamir-2 well by around 400 percent
following the discovery of a giant oil field. As a result of the find,
the company said that its estimate of unrisked prospective resources
increased to 147 million barrels of recoverable oil (corresponding to
464 million barrels of mean estimated gross discovered oil initially in
place) for the Oligocene reservoir in the Kurdamir block.
the Kurdamir production sharing contract (PSC), the Kurdamir-2 well,
which was spudded last October, was required to be drilled by the end of
June this year, after which a testing program of indicated pay
intervals of the Cretaceous reservoir will follow.
well is located approximately two kilometres northeast of the
Kurdamir-1 discovery well and is targeting the Oligocene, Eocene and
Cretaceous reservoirs on the flank of the structure where the combined
potential oil interval is likely at maximum thickness.
WesternZagros and Talisman each have a 40 per cent working interest
in the Kurdamir Block, with the Kurdistan regional government holding
the remaining 20 per cent.
Meanwhile, earlier this month the
company also reported that after eight months on extended well test, the
Jeribe and Upper Dhiban formations in Sarqala-1 produced roughly one
million barrels of light oil.
WesternZagros said it is in
discussions with the Ministry of Natural Resources of the Kurdistan
regional government with respect to a declaration of commerciality, and
the submission of a development plan for Sarqala.
Through its wholly-owned subsidiaries, the company holds two production sharing contracts with the Kurdistan Regional
Government in the Kurdistan region of Iraq.