Sarqala – 1 Oil Discovery

Sarqala-1 well encountered three reservoirs: the Upper Fars sandstone, the Jeribe dolo-limestone reservoir and the Oligocene reservoir. Oil kicks were registered in all three reservoirs. WesternZagros’s Sarqala-1 well initially tested rates of over 9,000 barrels per day (“bbl/d”) of 40° API light crude oil from the Jeribe formation. In October 2014, the Company successfully completed the workover of the Sarqala-1 well. The purpose of the workover was to install larger tubing to replace the subsurface safety valve and increase the flow capacity of the well. The Company tested the well at rates of up to 11,500 bbl/d of 40 degree API oil from the Jeribe/Upper Dhiban reservoir. The Sarqala-1 well previously produced over 1 million barrels of light oil at an average flow rate of 5,000 bbl/d of oil during an extended well test in 2011 and 2012. The new flow rate of 11,500 bbl/d was reached after two days of flowing and stabilizing the well at progressively bigger choke sizes prior to the final flow. The final flow rate was achieved on a one inch choke with a wellhead pressure of 2,155 pounds per square inch. No stimulation was applied to the reservoir; however, it remains an option to do so at a later date. As during the previous extended well test, this current test produced no hydrogen sulphide gas or formation water.