WesternZagros Resources (CVE:WZR) said Tuesday that while it is focusing on its Kurdamir wells in the Oligocene and Eocene reservoirs, it also has its sights on the Baram prospect as it heads into 2013.
In an investor webcast Tuesday, CEO Simon Hatfield highlighted recent test results from the Kurdamir-2 well at the Oligocene reservoir – released last week.
The cased-hole test in the Oligocene formation, which was conducted over a 24-metre thick interval between depths of 2,528 and 2,552 metres, achieved a stabilized flow rate of 2,184 barrels per day of light, 42 degree API oil and 10.4 million cubic feet per day of natural gas.
The initial open-hole test conducted earlier this year in March resulted in a major oil discovery in the Oligocene interval, and late last month, the company said the first cased hole test in the Oligocene formation of the Kurdamir-2 well far exceeded expectations.
Hatfield said that the results seen at Kurdamir-2 underscore the company’s belief that the Oligocene formation is a giant oil field.
“And owning a 40-per-cent share of a giant oil field is a company maker,” he said.
“We don’t know how big it is, but ultimately, big fields tend to get bigger with time as they are developed.”
Talisman Energy (TSE:TLM), the operator of the well, also holds a 40 per cent working interest in the Kurdamir block, with the Kurdistan regional government holding the remainder.
Hatfield said he expects that the Kurdamir-2 test and wireline log data will “substantially increase” contingent and prospective resource estimates for the Oligocene reservoir, adding that the updated numbers should be available before beginning of February.
The company believes that the Oligocene has the potential to hold over a billion barrels of recoverable oil.
The current independently-audited unrisked mean estimates for the contingent resources in the Oligocene reservoir of the Kurdamir structure are 990 billion cubic feet of gas, 39 million barrels (MMbbl) of condensate and 147 MMbbl oil as of April 20.
As of May 31, the unrisked mean estimate for the prospective resources in the Oligocene reservoir is 1,150 MMbbl.
Hatfield said the company will focus on step out exploration near Kurdamir 2, saying that Talisman will move the rig to the Kurdamir-3 well location for an anticipated spud date in February of next year.
“The next gleam in our eye is the Baram prospect,” he noted.
“Previously we viewed Baram as a separate prospect, but we’ve been looking hard at the data and there is another probable interpretation.
“We now know that oil leg expends well beyond limits of four way closure on Kurdamir.”
Hatfield said that there is a strong possibility that the Baram prospect is an extension of the Kurdamir structure.
While there are no firm numbers for Baram yet, Hatfield said it is still an exciting prospect for the company.
Looking ahead, an exploration well is planned at Baram, targeting the Oligocene and Eocene reservoirs. WesternZagros said the well is anticipated to spud in July of 2013.
At its South Garmian block, the company is planning for a Hasira-1 exploration commitment well to evaluate the Oligocene and Upper Fars, and appraise the Jeribe reservoir in the Sarqala structure.
Additionally, a shallow drill program is on the horizon for the Upper Bakhtiari reservoir, as well as 3D seismic programs in the Sarqala and Mil Qasim structures.
“We feel like we are right on the path we set out to be on when we entered Kurdistan eight years ago,” Hatfield said.
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