Corporate Presentation November 2011 TSX.V: WZR www.westernzagros.com
Exceptional Exploration Success with the Start of Production Targeting over 1 billion prospective BOEs in Separators and Wellhead Shipping Pump Manifold the next 8 months (includes the Sarqala-1 oil discovery, Mil Qasim-1 and Kurdamir-2)…
The Kurdistan Region of Iraq: Hunting Grounds for Giant Fields The Kurdamir and Garmian Blocks, combined, form one of the largest (2,120 km2/500,000 acre) exploration areas in the Kurdistan Region of Iraq The Garmian contract area…
WesternZagros Today Symbol (TSX Venture Exchange) WZR First Listed October 22, 2007 1 Basic Shares Outstanding 371.2 million 2 Diluted Shares Outstanding 396.3 million 3 Director & Officer Ownership 6.5% 4 Market…
Financial Position (US millions) Working Capital Position (as at June 30, 2011) Cash 50.7 Non-Cash Working Capital (8.4) Insurance Receivable 1 4.4 October 25, 2011 Private Placement Proceeds2 46.6 Working Capital 93.3 2011…
The WesternZagros Story: Steady Progress One of the first four operators in the Kurdistan Region: Updated resource assessment Large hand-picked exploration block Sproule audit of prospective resources supports over 3.5 billion BOEs…
Three Wells to Target over 1 Billion BOEs of Prospective Resources * 20 - 25 million Sarqala-1 Extended well test commenced on October 18, 2011; lifting on October 27, 2011 gross cost ** Re-Entry Oil discovery 30 - 35 million Mil…
Near Term Potential Value Creation: 2011-2012 Gross Unrisked Prospective Resources (Audited) * October 25, 2011 Spudded Kurdamir-2 well August 29, 2011 Spudded Mil May/June 2011 Qasim-1 well Oil Discovery 9,444 bopd 40o API…
WesternZagros Kurdamir and Garmian Blocks Located for Success Tremendous potential of the region long recognized by industry WesternZagros in early: hand-picked its exploration acreage Our PSC lands contain a large number of…
The Kurdistan Region of Iraq Current Export Production Current Export Volumes* Taq Taq 60,000 bopd (trucked) Tawke 72,000 bopd Khurmala 35,000 bopd Kor Mor 14,000 bopd (trucked) Shaikan 5,000 bopd (trucked) Current Exports 186,000…
Kurdamir and Garmian Blocks Oil Prone Kurdamir -1 Well Discovery Photo of natural oil seep Analysis of actual oils and condensate recovered confirms Aaliji source rock (Analysis conducted by Weatherford Labs) Aaliji Source…
Multiple Prospects: Oil & Gas Garmian Block Mil Qasim-1 currently drilling (Third commitment well) Kurdamir Block Kurdamir-2 well spud on October 25, 2011 Significant well in adjacent Block Topkhana-1 well (Talisman -…
Hydrocarbon Habitat of Surrounding Discoveries Oil Discovery 1800 metres gross 1200 metres hydrocarbon 1900 metres gross interval gross hydrocarbon hydrocarbon interval interval Most of the fields in the chart that…
Political Environment Progressing October 2005 February 2011 Iraqi constitution adopted Iraq Prime Minister announces Kurdistan PSCs will be respected February 2007 Oil exports from Kurdistan resume Draft Federal Petroleum Law…
Production Sharing Contract (PSC): Fair and Balanced Terms Oil Case When the R-Factor (revenue/cost) is below one, the Contractor Group is entitled to 35% of the Profit Oil. The Contractor Groups percentage is then reduced on a…
Competitive PSC Terms 200mm upon Entry 280mm due June 30 '12 140mm upon Entry 65mm upon Entry 1. Repsol and Norbest maximum profit oil rate is 32% and 23.8% until such time the R-Factor is greater than 1 2. Not adjusted…
Near Term Opportunities of the Garmian Block Sarqala Oil discovery in the Jeribe Formation Flowed light, 40 API oil at rates of over 9,000 bopd Received KRG approval in late September 2011 to begin producing first oil through an…
Oil Discovery At Sarqala-1 Followed By Opportunity at Mil Qasim-1 (Garmian Block) Sarqala -1 Well Sidetrack completed through Jeribe Formation The Jeribe Formation flowed light, 40 API oil at rates of over 9,000 bopd (no stimulation,…
Mil Qasim-1 (Garmian Block): Currently Drilling Targeting Upper Fars reservoir, where high pressure 35 - 42 degree API oil was encountered at Sarqala-1 Oil shows encountered above the targeted Upper Fars reservoir of the Mil Qasim-1…
Near Term Opportunities of Kurdamir Block Kurdamir-2 was spud on October 25, 2011 Contracted 2,000 HP Deutag rig Kurdamir-2 to be drilled by June 30, 2012 Kurdamir-2 Rig Site Sept 30, 2011 21
Kurdamir Discovery (Kurdamir Block) Kurdamir-1 drilled through Oligocene, Eocene, Cretaceous (Shiranish and Kometan) reservoirs Penetrated a gross interval of approximately 1,900 metres of hydrocarbon shows Shut well in at…
Success at Kurdamir: Over 1,900 Metres of Gross Hydrocarbon Interval Confirmed excellent Oligocene reservoir Confirmed oil column in the Oligocene reservoir, testing light oil with major upside Prospective Resources (MMbbls) P90…
Kurdamir-Topkhana Structure: The Potential Oligocene Reward Oil is confirmed in the Oligocene reservoir Analysis of condensate discovered on crest of Kurdamir-Topkhana Structure indicates an oil source Gas cap on crest of…
Kurdamir-Topkhana Structure Topkhana well results in 2011/2012 to confirm whether the Kurdamir Structure extends off the Block WesternZagros has no ownership interest in this well Kurdamir-2 will be the important test…
Kurdamir-Topkhana Structure: The Potential Oligocene Reward Prospective resources (audited) have more than doubled from our November 26, 2009 assessment Cased hole testing indicated substantially larger structure as no formation…
Kurdamir-Topkhana Structure: Additional Potential Reward Potential similar to Oligocene in the deeper zones: Eocene and Cretaceous (Shiranish and Kometan) Depth map of Cretaceous Formations 27
Kurdamir-2 (Kurdamir Block): Currently Drilling Kurdamir-2 spudded on Horizon Legend Ground Elevation October 25, 2011 Upper Fars Lower Fars Evaporite Objectives to evaluate and test Base Fars Detachment Lower Fars Transition…
Multiple Transportation and Market Options Well-established oil export routes: Mediterranean and Persian Gulf Potential pipelines: Kirkuk-Ceyhan System Kirkuk-Basra Baniyas-Syria System Proposed system within Kurdistan Two oil…
Corporate Social Responsibility Long-term benefits for the local community: health, water, education and recreation Strong focus on health, safety and security
Making a Difference Where We Operate We: Participate in the United Nations Global Compact with adherence to Corporate Social Responsibility Investment Priorities the Ten Principles Work with key stakeholders in our area of…
WesternZagros: Next Steps Evaluate results from the extended well test at Sarqala-1 to plan for future appraisal and development activities, including the potential for increasing production beyond 5,000 barrels of oil per day…
WesternZagros: On the Cusp of a Major Oil Discovery The Kurdamir and Garmian Blocks, combined, form one of the largest exploration areas in Kurdistan, one of the worlds most exciting exploration regions Current team is highly…
Additional Information WesternZagros CEO Simon Hatfield and Operations Staff next to Sarqala-1 oil discovery well head 34
Experienced Management & Strong Technical Team Simon Hatfield, CEO Proven track record of success with over 30 years of international and domestic oil and gas experience in technical, managerial and executive positions with Western Oil…
Board of Directors Disciplined, Independent, Experienced David Boone Broad Canadian and international energy experience in the upstream industry with positions including President, Offshore and International Operations for EnCana…
Board of Directors Disciplined, Independent, Experienced Simon Hatfield Proven track record of success with over 30 years of international and domestic oil and gas experience in technical, managerial and executive positions with…
Kurdamir Block Contingent and Prospective Resources: Kurdamir Low Best High Mean Estimate(6) Estimate(7) Estimate(8) Estimate(9) Table 1(a) Gross Unrisked Prospect Reservoir Hydrocarbon P90 P50 P10 Mean Contingent Resources (1),…
Garmian Block Contingent and Prospective Resources: Sarqala Low Best High Mean Estimate(6) Estimate(7) Estimate(8) Estimate(9) Table 2(a) Gross Unrisked Prospect Reservoir Hydrocarbon P90 P50 P10 Mean Contingent Resources (1), (2)…
Garmian Block Prospective Resources: Mil Qasim, Baran and Qulijan Low Best High Mean Estimate(6) Estimate(7) Estimate(8) Estimate(9) Prospect Reservoir Hydrocarbon P90 P50 P10 Mean Type MMbbl MMbbl MMbbl MMbbl Mil Qasim Upper Fars…
Garmian Block Prospective Resources: The Next 5 Prospects and 2 Plays Low Best High Mean Estimate(6) Estimate(7) Estimate(8) Estimate(9) Prospect / Play Reservoir Hydrocarbon P90 P50 P10 Mean Type MMbbl MMbbl MMbbl MMbbl Upper Fars…
Kurdamir and Garmian Blocks: Contingent and Prospective Resources Play / Prospect Mean Estimate(9) Oil Only Mean Estimate(9) MMBOE(14) Tables 1(a) and MMbbl MMbbl 2(a) Gross Unrisked Kurdamir Block Contingent Resources (1),(2)…
Kurdamir and Garmian Blocks Prospective and Contingent Resources Footnotes Notes to Tables 1, 2, 3 and 4: (1) The resources presented are the gross volumes estimated for the indicated reservoirs without any adjustments for the…
Kurdamir and Garmian Blocks Prospective and Contingent Resources Footnotes (6) Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities…
The Regions Oil & Gas Fields 45
The Regions Operators Over 40 international oil companies with PSCs in Kurdistan Source: KRG and WesternZagros 46
Qulijan-1 (Garmian Block): Step Out Exploration Near Kurdamir Seismic mapping indicates large prospect at Qulijan Follow up potential to Kurdamir-2 and Topkhana-1 Well site is prepared and drill ready Horizon Legend Ground…
Bai Hassan: Analogue for Kurdamir-Topkhana Structure Bai Hassan: a proven oil Bai Hassan field, has a similar structure to Kurdamir- Topkhana 2.2 billion barrels of oil discovered in 1953 48
Growing Interest in Iraq Kurdistan under-explored relative to the rest of Iraq Quality of services increasing Security situation has improved Oil fields are producing and exporting oil Tawke and Taq Taq, producing and selling…
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