Western Zagros Gets New Investment

Houston-based oil investor Crest Energy International has taken �just under� a 10% stake in Kurdistan Regional Government (KRG) explorer Western Zagros, the Canadian independent announced on 7 August. Crest, whose parent company is headed by Syrian-American Jamal Daniel, an associate of Neil Bush, brother of former US president GW Bush, will pay Can$57mn ($57.4mn), or Can$1.40 per share, a 10% premium to Western Zagros�s 4 August closing price. Crest Investment company also has a stake in Range Energy Resources, which owns a 24.95% stake in the KRG�s Khalakan block, operated by the UAE�s New Age.

Western Zagros, which already has an investment from the UAE�s TAQA (MEES, 7 November 2011), also announced that Gazprom Neft had made its contractual payment of Can$83mn as part of its recent purchase of the 40% third party non-operator stake in Western Zagros�s Garmian block (MEES, 6 August). The �Amended Garmian PSC [production sharing contract] provides for an approximately Can$27mn reconciliation with the Kurdistan Regional Government (KRG) with the net amount retained by Western Zagros being Can$56mn,� the company said. Western Zagros has made promising discoveries both at Garmian and especially at Talisman�s neighboring Kurdamir block, in which it has a 40% non-operator stake. Final testing on the Kurdamir-2 well, which will be completed in a couple more months, should reveal exactly just how significant is what Western Zagros is touting as a major oil discovery (MEES, 2 April).

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