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Abstract
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") announces that it has been informed by the Kurdistan Regional Government ("KRG") that Gazprom Neft Middle East B.V. ("Gazprom Neft B.V."), has been assigned as the Third Party Participant ("TPP") for the Garmian Production Sharing Contract ("Garmian PSC"). WesternZagros is the operator of the Garmian Block, which contains the producing Sarqala-1 oil well, the Mil Qasim discovery and several promising but undrilled exploration prospects. Gazprom Neft B.V., is a wholly owned subsidiary of JSC Gazprom Neft, which is the oil producing affiliate of OAO Gazprom. JSC Gazprom Neft is headquartered in St. Petersburg, Russia, and is majority owned by OAO Gazprom.
WesternZagros executed the Garmian PSC with the KRG on July 25, 2011 following the subdivision of the original larger exploration block into the Garmian and Kurdamir Blocks. The Garmian PSC provided the KRG the right to assign up to a 40 percent interest in the Garmian PSC to a third party participant. These rights have now been exercised and the KRG has assigned a 40 percent interest to Gazprom Neft B.V. through an amendment to the Garmian PSC (the "Amended Garmian PSC"). WesternZagros will continue to hold a 40 percent participating interest and the KRG will hold the remaining 20 percent. Operatorship of the Garmian Block will remain with WesternZagros until the commencement of the development period as per the terms of the Amended Garmian PSC. At such time, operatorship will transfer to Gazprom Neft B.V.
This news release contains certain forward-looking information relating, but not limited, to amounts to be received from the TPP assignment, future funding commitments and future operatorship, and the timing associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "plan", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. The Company cautions readers not to place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by WesternZagros. In addition, the forward-looking information is made as of the date hereof, and the Company assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.