WesternZagros Resources (CVE:WZR) Monday said it has awarded a contract for two rigs to a North American company, to drill on its Garmian Block in the Kurdistan Region of Iraq.
The two, 2,000 horse-power rigs will drill the Hasira-1 well, the Baram-1 well and subsequent wells on the Garmian Block, the company said, adding that the drilling services contract was awarded for a two year term with an option to extend for an additional two years. The deal also includes a provision for a third rig if required.
"We are pleased to have reached arrangements to bring two rigs from a new entrant to the Kurdistan region,” said CEO Simon Hatfield.
“This contract supports our objectives in the Garmian Block and will further strengthen and diversify the petroleum service sector in the region."
WesternZagros said drilling design and site construction are underway for both the Hasira-1 and Baram-1 wells and long-lead items have been ordered ahead of the anticipated spud dates in June and August, 2013, respectively.
The company is also “actively assessing future drilling prospects”, it said, which it will select based on its 3D seismic programs and drilling results on the Garmian Block and neighbouring blocks.
WesternZagros is focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in the Kurdistan Region of Iraq.
The junior oil and gas explorer has a 40 per cent working interest in the Kurdamir block, while Talisman Energy (TSE:TLM) also holds 40 per cent and acts as the operator, with the Kurdistan regional government holding the remaining 20 per cent.
Late last month, the company appointed William Jack to the position of general manager in Kurdistan, effective February 1.
In a December investor webcast, the company said 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.
The Baram prospect was previously viewed as separate, but WesternZagros said it now knows that oil leg expends well beyond the limits of the four way closure on Kurdamir.
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