Kurdamir – 2 Oil and Gas Discovery

After being spud in October 2011, the Kurdamir-2 exploration well drilled to a total depth of approximately 4,000 metres and penetrated three stacked reservoirs. From the bottom to the top they were the Shiranish, the Eocene and the Oligocene.

In the Shiranish reservoir, a Cretaceous-age reservoir, three cased-hole tests were carried out over a 221-metre gross interval that flowed light oil, but at sub-commercial rates. The encouraging aspect of these tests was the recovery of oil below the limit of closure of the Kurdamir structure as mapped from seismic data. This finding increases the likelihood that the Shiranish reservoir is involved in a larger trap, potentially sharing a common oil accumulation with the neighbouring Tophkana structure.

WesternZagros then performed a single cased-hole test in the Eocene reservoir over a net perforated interval of 108 metres. This test resulted in the flow of light, 45 degree API oil at sub-commercial flow rates.

Both the Shiranish and Eocene reservoirs, while demonstrating sub-commercial rates, have proven to be light oil bearing. Following additional appraisal wells, reservoir engineering can determine the optimal well designs and completion techniques to unlock the potential of these deeper reservoirs.

For the Oligocene reservoir, the Company completed one open-hole and two cased-hole tests with significant results. The first test in the Oligocene reservoir was an open-hole test that flowed 950 barrels of light, 47 degree API oil and 7.3 million cubic feet of gas per day from a 55 metre interval.

The first cased-hole test evaluated the non-porous zone of the reservoir, flowing 3,450 barrels per day of light 38 degree API oil from a 20 metre interval. Management believes that with larger tubing sizes, this deepest section of the Oligocene could flow oil at rates up to 7,000 barrels per day. This test also delivered a new lower known oil marker, proving that the Oligocene is an even thicker oil leg than previously thought at 146 metres. A second cased-hole test flowed at 2,184 barrels of 42 degree API oil and 10.4 million cubic feet of gas per day from a 24 metre interval.

The two cased-hole tests demonstrate the excellent permeability of the Oligocene reservoir, which is an essential component of its quality.