WesternZagros Resources has announced its operating and financial results for the second quarter ended June 30, 2016.
Commenting on the second quarter results and subsequent events, WesternZagros’s Chief Executive Officer Simon Hatfield said:
“A significant key milestone was reached with the approval of the Garmian Field Development Plan confirming the commercial potential of this project. The Sarqala-1 well has now produced over 3 million barrels of light oil to date with no indications of formation water and no hydrogen sulphide.
“In parallel, the Kurdamir project continues to advance with the submission of the Kurdamir Field Development Plan in conjunction with Repsol’s Topkhana Field Development Plan which envisions surface facilities shared between Kurdamir and Topkhana.”
“We believe the quality and scale of our oil and gas assets provide opportunities to realize the fundamental inherent value related to our long-life, low-decline assets and significant long-term oil and gas potential related to the Kurdamir and Garmian projects. We are encouraged by the leadership demonstrated by our co-venturers, Repsol and Gazprom Neft, to progress our respective major development and growth projects.“
Financial and Operating Highlights
Development Plans – WesternZagros and its co-venturer, Gazprom Neft Middle East B.V. received approval of the Garmian Block Field Development Plan from the Kurdistan Regional Government on May 26, 2016. The Garmian FDP is focused on the development of the Jeribe/Upper Dhiban reservoir.
With the approval of the Garmian FDP, the Company paid its share of the first production bonus due to the KRG in accordance with the terms of the Garmian PSC of $1.0 million.On May 27, 2016, the Company and Talisman (Block K344) B.V., a wholly owned subsidiary of Repsol S.A. submitted the revised Kurdamir Block Field Development Plan (“Kurdamir FDP”) to the KRG to develop the Block’s significant oil and gas resources.
Phase 1 is focused on the development of the Oligocene oil and gas discovery and includes a 150 million cubic feet per day (“mmcf/d”) central processing facility (“CPF”) shared equally between the Kurdamir Block and Repsol’s adjacent Topkhana Block.