Sunday, September 18, 2011

Oil in Kurdistan

Oil in Kurdistan

Westernzagros new corporate presentation:

Their Sep 8 PR states 1,900 metres of oil and gas strata at their Kudamir 1 well:

If this is not an elephant oil field in the making...only waiting for politics to subside and agreements to be finalized.

Marco G.


  1. according to slides 26 and 28:
    elephant x 0.9 (royalty) x 0.2 (contractor share) x x 0.4 (WZR share) x 0.5 (get half market price)
    = 1/30 of an elephant

    CEO is extremely disingenuous about this in the interview below - for instance he implies that 5kboepd from their well would easily cashflow their drilling, which is not even remotely the case
    5,000/30 x 365 x $100 = $6Mio/year

  2. on second thought the cost recovery oil from slide 28 would give them almost 40mio/year cash flow on 5000/day (or the equivalent fraction of drilling costs they pay), so maybe they could expand without much dilution

    But after cost recovery they will need at least 50kbopd production to justify their current market cap in Iraq. That is certainly achievable but will probably take several years.