Corporate Presentation September 2012 TSX.V: WZR www.westernzagros.com
Corporate Profile: Junior E & P Company Pure Play Focused on Kurdistan Region of Northern Iraq 1 Symbol on TSX Venture Exchange WZR First Listed October 22, 2007 2 Basic Shares Outstanding 412.0 million 3 Diluted Shares…
Our Assets: Two E&P Blocks in Kurdistan, Northern Iraq Assets Early entrant: blocks are one of the largest (2,120 km2/500,000 acres) exploration areas, 40% working interest in both Two Blocks - working interest: Kurdamir…
Our Assets: Kurdamir and Garmian Blocks Assets Multiple prospects and leads Over 0.4 billion BOEs of audited mean estimate contingent resources* Over 4.9 billion BOEs of audited mean estimate prospective resources* Oil, gas and…
Building on Exceptional Exploration Success Upcoming Work Plans Kurdamir Block: Shipping Pump Manifold Sarqala-1 Kurdamir Discovery: Kurdamir-2: conducting extensive testing program Cretaceous, Eocene and Oligocene in…
Exploration and Appraisal Well Drilling Timeline 2012 2013 Estimated Net KURDAMIR BLOCK Q3 Q4 Q1 Q2 Q3 Q4 Capital Cost (MM) Kurdamir-2 Oil Discovery Oligocene, Eocene, Cretaceous Kurdamir-2 18 - 24 Cretaceous, Eocene and Oligocene…
Size of the Prize: Garmian & Kurdamir Blocks 2012 Size of the prize is 3.3 billion barrels of prospective oil resources* Discoveries Jeribe (Sarqala-1 Well) Oligocene (Kurdamir-2 Well) Contingent Resources 171 MMbbl Appraisal…
Financial Position Working Capital Position (as at June 30, 2012) Cash and Short Term Investments 48.6 Non-Cash Working Capital (including trade and other payables) (30.1) Garmian TPP Award to Gazprom Neft 56.0 Private Placement…
Kurdamir and Garmian Blocks: Light Oil Prone Four discoveries at Kurdamir 1 and Kurdamir-2, Sarqala-1 and Mil Qasim-1 wells Proven light oil: desirable for domestic market and export blend 69% of Iraqs reserves are 27 API or…
Near Term Production Potential of our Blocks Garmian Block Sarqala-1: 5,000 10,000 bbl/d Hasira-1: 5,000 15,000 bbl/d Upper Bakhtiari: 4,000+ bbl/d Kurdamir Block Kurdamir-2: 4,000+ bbl/d (one zone only) 11
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…
Top Quartile PSC Effective Profit Oil Entitlement Effective Contractor Profit Oil % Allocations Based on R-Factors (1) 40% 35% 30% 140mm upon Entry 25% 65mm upon Entry 20% 15% 10% 5% Pre-Iraqi Constitution…
Kurdamir Block: Major Oil Discovery in Oligocene Light oil column with large gas cap discovered in the Oligocene reservoir at Kurdamir-1 in 2010 118 metres of gross, light oil pay confirmed in Kurdamir-2 in 2012 Maximum extent…
Kurdamir: Major Oil Discovery in Oligocene Kurdamir-1: Test flowed at 27.5 MMcf/d of gas and 1,172 bbls/d of 61 degree API natural gas liquids Kurdamir-2: Test flowed at rate of 7.3 MMcf/d of gas and 950 bbl/d without…
Kurdamir-Topkhana Structure Share a Common Oil Leg Kurdamir structure extends off the Block and is a giant oil field (500 million barrels) in the Oligocene reservoir Mean estimate of contingent Oligocene resources: 147 MMbbls of oil*…
Kurdamir-Topkhana Structure: The Potential Oligocene Reward Confirmed oil column in the Oligocene reservoir, testing light oil with major upside Results of Kurdamir- 2 have increased known hydrocarbon column proven in the…
Kurdamir-Topkhana Structure: The Potential Eocene Reward Second reservoir penetrated in the Kurdamir-2 well Encountered oil bearing, fractured Eocene reservoir section with gross thickness of 275 metres Latest resource estimate…
Kurdamir: Long Potential Oligocene and Eocene Oil Legs Kurdamir structure extends off the Block and is a giant oil field (500 million barrels) in the Oligocene reservoir Mean estimate of contingent Oligocene resources: 147 MMbbls…
Kurdamir-Topkhana Structure: The Potential Cretaceous Reward Statistically, one of the most common oil bearing zones in Kurdistan Regional test rates: 300 bbl/d to 13,000 bbl/d; mean of 4,000 bbl/d1 Interpreted to extend off…
Kurdamir Structure: Major Discovery in Oligocene Well testing at Kurdamir-2: March 2012 Composite Seismic Section (SW to NE) of Kurdamir-1 and Kurdamir-2 locations Next Steps: Testing program of the Cretaceous reservoir at…
Qulijan & Baran (Garmian Block): Step Out Exploration Near Kurdamir Seismic mapping and confirmation of the oil column in the Oligocene reservoir at Kurdamir-indicate large prospects at Qulijan and Baran Planning design and…
Qulijan & Baran (Garmian Block): Step Out Exploration Near Kurdamir Prospective oil zones in Qulijan and Baran are approximately the same depth as in the Kurdamir structure Potential for Baran to be a separate compartment of the…
Near Term Plans on the Garmian Block Hasira-1 Well 3D Seismic Program Exploration well targeting the Oligocene. Also 3D seismic program of the Sarqala and appraisal well of the Jeribe reservoir Mil Qasim structures planned to start…
Mil Qasim and Sarqala Structures Hasira-1 Well Exploration commitment well to evaluate the Oligocene and Upper Fars, and appraise the Jeribe reservoir in the Sarqala structure Prospective oil resources in the Oligocene reservoir…
Upper Bakhtiari Prospect at Mil Qasim High porosity congomerate and sandstone interval of approximately 25 metres thickness 3 well drilling program planned to depths of 500-750 metres maximum Anticipated spud date is late December…
Sarqala and Mil Qasim Structures Sarqala-1 drilled gross oil interval of 2,335 metres No gas cap or water leg encountered in Sarqala-1 Hasira-1 (appraisal of the Jeribe reservoir and exploration well of the Oligocene…
Increasing Transportation and Market Options Existing oil pipelines: Kirkuk-Ceyhan System Kirkuk-Basra Baniyas-Syria System Kor Mor to Erbil (gas only) Planned oil pipelines: Kurdistan and Turkey 400,000 bbl/d pipeline from Taq…
Corporate Social Responsibility Long-term benefits for the local community: health, water, education and recreation Strong focus on health, safety and security 29
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 Kurdamir Discovery: conducting extensive testing program in the Cretaceous reservoir (Sept., 2012) additional testing of Eocene and Oligocene reservoirs (Oct., 2012) extended well test of potentially any of…
WesternZagros: Delivering on Major Oil Discoveries Achieved 171 MMbbls of oil, or 415 MMBOE, mean contingent resources, including major oil leg at Kurdamir Considerable increase in mean prospective resources to 3.3 Bbbls, or 4.9…
Additional Information WesternZagros management, KRG representative and site personnel celebrating commencement of production for the Sarqala-1 extended well test October, 2011 33
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…
Experienced Management & Strong Technical Team Mike Tinkler, Vice President, Exploration and Reservoir Development Over 30 years of international oil and gas experience in management positions for projects with Husky in China and…
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 Jim Houck Proven track record of success with The Churchill Corporation, as President and CEO from 2007 2012; ChevronTexaco Inc., as President of Texaco Development Corporation…
Kurdamir Block Contingent and Prospective Resources 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), (2) Type…
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: Additional Plays and Prospects 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 Pichuk Upper…
Kurdamir and Garmian Blocks: Contingent and Prospective Resources 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 Segrdan Jeribe…
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, 3,4 and 5: 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 (1) 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 WesternZagros Story: Steady Progress One of the first four operators in the Kurdistan Region Start-up of production and cash flow at Sarqala-1 Large hand-picked exploration block Extended well test began October 18, 2011 Payment…
Political Environment April 2011 October 2005 Kurdistan Prime Minister presents first KRG oil export statement Iraqi constitution adopted to Iraq federal finance ministry over 5 million barrels delivered to state marketing agency…
Kurdamir and Garmian Blocks Oil Prone Kurdamir -1 Well Discovery Natural oil seep Analysis of actual oils and condensate recovered confirms Aaliji source rock (Analysis conducted by Weatherford Labs) Aaliji Source Rock…
The Regions Oil and Gas Fields 50
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 Discovery well drilled on crest and…
The Regions Operators Bl ock Opera tor A Ga rmi a n Wes ternZa gros Over 40 international oil B Kurda mi r Ta l i s ma n companies with PSCs C Ai n Si fni / K8 Hunt in Kurdistan D Akre-Bi jeel MOL / Ka l egra n E A l Qush/B…
Growing Interest in Kurdistan Kurdistan under-explored relative to the rest of Iraq Quality of services increasing Security situation has improved Major oil companies, such as Exxon, acquiring oil and gas blocks in the region 53
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