Corporate History

October 18, 2016 Successfully entered into a third letter agreement with Crest to further extend the timing to draw on the US$200 million unsecured debt facility to better meet the Company’s capital expenditure profile and reduce near term financing costs. All other items remain unchanged.
May 27, 2016 Along with its co-venturer, a subsidiary of Repsol S.A., Talisman (Block K44) B.V., submitted an Field Development Plan to the KRG to develop significant oil and gas resources discovered on the Kurdamir Block. Phase 1 is focused on the development of the Oligocene oil and gas discovery and includes a central processing facility shared equally between the Kurdamir block and Repsol’s adjacent Topkhana Block.
May 26, 2016 Along with its co-venturer, Gazprom Neft Middle East B.V., received approval for the Garmian Field Development Plan from the KRG. The Garmian Field Development Plan is focused on the development of the Jeribe/Upper Dhiban reservoir.
April 27, 2016 Successfully reached an agreement Crest to further amend the US$200 million unsecured debt facility to extend the date by which the Company must deliver to Crest the first drawdown notice for each tranche and reverses the ordering of the first and second tranches to better align with the Company’s anticipated capital needs. All other terms remain unchanged.
February 29, 2016 Transitioned operatorship on the Garmian Block from WesternZagros to Gazprom Neft pursuant to the terms of the Garmian PSC.
December 31, 2015 Commenced a review of all financing alternatives including but not limited to, the completion of an alternative debt financing or equity financing, or the farm down or sale of some of the assets of the Company. The Company retained TD Securities to act as its financial advisor in this regard.
Received Sproule International Limited’s (“Sproule”) December 31 2015 evaluation of the reserves and audit of the prospective resources for oil resources in the Sarqala Jeribe/Upper Dhiban reservoir on the Garmian Block and audit of the contingent and prospective resources for oil and gas in the Oligocene reservoir on the Kurdamir Block. The contingent and prospective resources reports were prepared for risked and unrisked volumes pursuant to the new Canadian Resources other than Reserves (“ROTR”) disclosure requirements. The estimated Proved plus Probable (“2P”) Reserves (Gross Block) for the Garmian Block increased 16 percent to 13 million barrels of oil (“MMbbl”) and the unrisked Prospective Resources of oil (Gross Block P50 estimate) increased by 8 percent to 66 MMbbl. There was no change to the Kurdamir Oligocene unrisked Contingent Resources of 366 MMbbl of oil, 1.8 Tcf of natural gas an 55 MMbbl of condensate or the unrisked Prospective Resource of 1 billion barrels of oil and 1 Tcf of natural gas (all Gross Block P50 estimates).
December 21, 2015 Fully repaid the Cdn $100 million Convertible Notes from available funds recognizing a total foreign exchange gain upon repayment of approximately $25 million since the debt was first incurred in 2013.
Reached an agreement with Crest to defer the first drawdown notice date under the first tranche of its US$200 million unsecured Debt Facility. All the other terms, including the maturity dates, remain unchanged.
May 2015 Repsol S.A. acquired Talisman Energy Inc. after which Repsol continued the field development plan negotiations with the Company and the KRG. The revised development concept under negotiation includes the development of the Oligocene oil and gas disclosure and contemplates a shared central processing facility to process the produced oil and gas with the Kurdamir Block and neighboring Topkhana Block to optimize capital costs with each block conducting its own drilling program.
February 11, 2015 Initial oil production, in the Development Period, commenced from the Sarqala-1 well on February 11, 2015. Crude oil production is trucked to the domestic market with pre-payment for the oil received from the domestic purchasers in advance of delivery at the well head.
December 31, 2014 Established initial light oil Reserves for the Garmian Block with year-end values of 11 million barrels of 2P light oil Reserves (Gross Block) as determined by the Company’s independent, qualified, reserves evaluator in a report dated on March 13, 2015. The Garmian contract area including the Sarqala discovery contains a further 417 MMbbl of oil of unrisked Prospective Resources (Gross Block combined Mean estimate).
November 18, 2014 Successfully completed its rights offering generating gross proceeds of Cdn $200 million to fund the phased development of WesternZagros’s two major oil discoveries on the Kurdamir and Garmian blocks, including the equity backstop provided by the Company’s largest shareholder, Crest. In addition, Crest has also agreed to provide debt financing of up to $200 million available to be drawn in two separate tranches.
October 16, 2014 Successfully completed the workover of the Sarqala-1 well on the Garmian Block to increase the flow capacity of the well. The well tested at rates of up to 11,500 barrels per day of 40 degree API oil.
September 1, 2014 Established Proved plus Probable Reserves for the first time by completing an independent evaluation of the Company’s light oil discovery on the Garmian Block. This evaluation recognized an initial 12 million barrels of gross Proved plus Probable light oil Reserves, although this represents only a small portion of the potential of the Sarqala Discovery.
August 31, 2014 Filed a development plan for the Kurdamir Block that included two initial phases of development to secure early oil and gas production. Additional consultation is taking place with the Kurdistan Regional Government`s (“KRG”) Ministry of Natural Resources to redefine the development plan prior to approval..
June 20, 2014 Submitted the Garmian Field Development Plan for approval by the KRG. This development plan outlines the location of future development wells, production facilities, a processing facility, gas conservation solutions and other support infrastructure for ramping production higher. It serves as a blueprint for increasing the Company’s production up towards 35,000 bbl/d. Also included is our preliminary engineering design for expanded facilities and a subsurface simulation model that will project the forward performance of the Sarqala field.
May 21, 2014 The Board of Directors established a Special Committee to review all financing and strategic alternatives available to the Company with a view to enhancing shareholder value. In addition, the Company retained Citigroup Global Markets Inc. (“Citi”) to act as its financial advisor. One of the alternatives that the Special Committee is exploring is a possible corporate transaction and is in discussions with certain parties to determine whether such a transaction would deliver additional value to shareholders. Notwithstanding this, the Special Committee continues to consider all available alternatives for enhancing shareholder value, which may include, but are not limited to, a potential sale of the Company, a merger or other business combination, the sale of some or all of the assets of the Company in one or more transactions, the completion of a rights offering or other equity or debt financing or any combination of these alternatives.
March 13, 2014 The KRG’s approval of the Garmian Declaration of Commerciality marks a new era in the Company’s history, turning its discoveries into production. The transition from exploration to development marks the end of the exploration activities and the Company turns its focus and financial resources to development. The Company and its partner, Gazprom Neft, relinquish the areas of the Garmian Block that are not covered by the development plan.
February 12, 2014 Drilled the Baram-1 exploration well on the Garmian Block, and discovered light oil in the Oligocene formation.
Nov 6, 2013 Drilled the Kurdamir-3 appraisal well on the Kurdamir oil and gas discovery, and discovered light oil in the Oligocene formation.
June 28, 2013 Secured a second non-brokered private placement of $30 million aggregate principal amount of Convertibles Notes. A portion of the proceeds from the private placements were used to repay the remaining Crest debt of $44.5 million plus accrued interest as per the terms of the loan agreement with the balance to be used to fund the Company’s capital and operating activities.
June 18, 2013 Secured non-brokered private placement of $70 million aggregate principal amount of 4.00% Convertible Senior Unsecured Notes with Paulson & Co., Inc.
April 4, 2013 Secured an additional $14.1 million investment with Crest and Jasmine Capital (a wholly-owned subsidiary of Richard Chandler Corporation).
March 11, 2013 Secured $62.4 million strategic investment as well as a US$57.5 million loan agreement with Crest.
February 8, 2013 The Company conducted further analysis of the results from the Kurdamir-2 well and updated its resource estimates for both the Kurdamir Block and for the adjacent Baram Prospect on the Garmian Block. On the Baram prospect, the mean estimate of gross unrisked prospective resources (“Mean Prospective Resources”) in the Oligocene reservoir increased by over 300 percent to 423 MMbbl or 496 million barrels of oil equivalent (“MMBOE”) when gas and condensate are added. Based on a recalculation of Oligocene contingent and prospective resources, the contingent and prospective resources for the Kurdamir Oligocene reservoir from January 25, 2013 have been revised by the Company and audited by Sproule. This recalculations stems from changes in two reservoir parameters including the compositional analysis of oil samples from DST 6 in the Kurdamir-2 well. The revision results in a minor reduction in the contingent resources and an increase in the prospective resources categories. The updated resource assessment revises the mean estimate of gross unrisked contingent resources (“Mean Contingent Resources”) on the Kurdamir exploration block to 390 MMbbl of oil, or 717 MMBOE when gas and condensate are added. The revised Mean Prospective Resources on the Kurdamir exploration block is 1.1 billion barrels of oil, or 1.2 billion barrels of oil equivalent when gas and condensate are included.
The latest audited estimates represent an increase in the combined Mean Contingent Resources on the Kurdamir and Garmian exploration blocks to 569 MMbbl of oil, or 974 million barrels of oil equivalent when gas and condensate are included. The current combined mean estimate of Mean Prospective Resources on the PSC lands is 3.4 billion barrels of oil, or 4.7 billion barrels of oil equivalent when gas and condensate are included.
January 25, 2013 An update resource assessment adds Mean Contingent Resources in the Oligocene reservoir of 435 MMbbl and in the Eocene reservoir of 155 MMbbl at Kurdamir. The revised Mean Contingent Resource is now 590 MMbbl of oil as of January 25, 2013.
August 7, 2012 Secured C$57 million strategic investment with Crest.
August 1, 2012 The KRG assigned Gazprom Neft Middle East B.V. as the Third Party Participant Interest on the Garmian Block with a 40 percent working interest. WesternZagros maintains its 40 percent working interest and will remain operator on the Garmian Block until the commencement of the development period under the Garmian Production Sharing Contract (“Garmian PSC”).
June 6, 2012 An update resource assessment adds Mean Prospective Resources in the Eocene reservoir at Kurdamir. The revised Mean Prospective Resource is now 278 MMbbl of oil as of June 1, 2012.The latest audited estimates represent an increase in the combined Mean Prospective Resources on the PSC lands to 3.3 billion barrels (“Bbbl”) of oil, or 4.9 billion barrels of oil equivalent (“BOE”) when gas and condensate are included. The current combined mean estimate of Mean Contingent Resources on the Kurdamir and Garmian exploration blocks are 171 MMbbl of oil, or 415 million BOE when gas and condensate are included.
April 23, 2012 An update resource assessment adds Mean Contingent Resources of 147 MMbbl of recoverable oil; total mean estimate of Mean Prospective Resources increase to over 1.2 Bbbl of oil from the Oligocene Reservoir in the Kurdamir Block. The latest audited estimates represent an increase in the combined Mean Contingent Resources on the PSC lands to 171 MMbbl of oil and combined Mean Prospective Resources on the PSC lands to 3.2 Bbbl of oil.
March 26, 2012 Drilled the Kurdamir-2 well in the Kurdamir Block and discovered a large oil column in the Oligocene reservoir.
February 16, 2012 Drilled the Mil Qasim-1 well in the Garmian Block and discovered oil in the Upper Fars Formation.
February 16, 2012 Achieved daily production over 5,000 barrels from the Sarqala-1 extended well test in the Garmian Block.
October 17, 2011 Secured C$46.6 million strategic investment with TAQA, the Abu Dhabi National Energy Company.
September 15, 2011 An update resource assessment adds first contingent resources of 24 million barrels of oil at Sarqala; total prospective resources increase to over 3.6 billion barrels of equivalent (mean estimate), including 2.3 billion barrels of oil.
August 2, 2011 WesternZagros finalizes an agreement with the KRG and Talisman (Block 44) B.V. to amend the original PSC. The agreement divides the contract area of the original PSC into two contract areas named Garmian and Kurdamir, each operated under a distinct PSC.
November 4, 2009 Drilled the Kurdamir-1 well in the Kurdamir Block to the Eocene; discovered oil in the Oligocene reservoir, a large gas cap with a high condensate yield and numerous deeper oil and gas shows.
December 15, 2008 Drilled the Sarqala-1 well in the Garmian Block to the Eocene and discovered significant oil shows in the Upper Fars, Jeribe and Oligocene formations.
February 28, 2008 WesternZagros signs a PSC with the KRG for the 2,120 square kilometre (523,863 acre) Kalar-Bawanoor Block, which amends the Company’s previous Exploration and Production Sharing Agreement (“EPSA”).
October 22, 2007 WesternZagros becomes a publicly-traded company listed on the TSX Venture Exchange under the symbol “WZR”.
August 6, 2007 The Kurdistan Parliament approves the Kurdistan Region Oil and Gas Law.
June 2007 Draft Federal Revenue Sharing Law is approved by the Iraqi cabinet representatives and the KRG legislating that the Kurdistan Region will receive 17% of net revenue.
May 4, 2006 EPSA is signed in Sulaymaniya, Kurdistan.
October 2005 With the adoption of the Iraq Constitution in October 2005, WesternZagros proposes and negotiates an EPSA with the KRG on the Kalar-Bawanoor Block in southern Kurdistan.
March 2005 WesternZagros signs an Memorandum of Understanding (“MOU”) with the federal Ministry of Oil in Baghdad regarding various technical cooperation projects.
November 2004 WesternZagros signs a MOU with the KRG Sulaymaniya Administration in order to conduct an exploration study in an area within southern Kurdistan.
Early 2003 WesternZagros initiates examining oil and gas exploration and development opportunities in Iraq with a focus on the Kurdistan Region.