Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WESTERNZAGROS RESOURCES LTD. We currently have 18 research reports from 1 professional analysts.
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Research reports on
WESTERNZAGROS RESOURCES LTD
WESTERNZAGROS RESOURCES LTD
Reports 2Q16 Results
12 Aug 16
WesternZagros reported 2Q16 production results of 4,884 (1,953 bbl/d net) from the Sarqala-1 well on the Garmian Block. To date, the well has now produced over 3 mmbbl of light oil with no indications of formation water and no hydrogen sulphide. As previously announced in 2Q16, the Garmian field development plan was approved and the Kurdamir field development plan was submitted. At the present time, there is very little operational activity being undertaken. The Sarqla-2 well is expected to spud in 1H17e.
WESTERNZAGROS RECEIVES FIELD DEVELOPMENT PLAN APPROVAL FOR THE GARMIAN BLOCK, SARQALA DISCOVERY
31 May 16
WesternZagros has received field development plan (FDP) approval for the Garmian Block, Sarqala discovery (40% WI). Approval will enable WesternZagros to proceed with the development drilling of the Sarqala-2 and -3 wells, which also realizing incremental value via the expected reclassification of prospective resources to reserves.
Continues to Work toward Field Development Plan Approval – Stay Tuned
20 May 16
WesternZagros reported 1Q16 results that were inconsequential. As previously announced, production in 1Q16 was significantly curtailed as new payment arrangements were being finalized. The Kurdistan export pipeline also experienced a disruption. At the Garmian Block (Sarqala discovery), WesternZagros continues to wait for field development plan approval. WesternZagros is ready to drill the Sarqala-2 well, post FDP approval. At the Kurdamir Block, WesternZagros and Repsol are progressing negotiations with the Kurdistan Regional Government to advance the field development plan. The co-ventures have completed engineering, are reviewing bids for construction of the natural gas plant, and negotiating a gas sales agreement. Work continues to advance.
RESUMES PRODUCTION FROM THE SARQALA-1 WELL
03 May 16
Market Impact: Positive. WesternZagros has resumed production from the Sarqala-1 well on the Garmian Block (40% WI). We were not anticipating production to resume until late 2Q16e/early 3Q16e. The well is expected to average approximately 5,000 bbl/d (2,000 bbl/d net), which is in line with production levels prior to being temporarily shut-in.
INCREASES DEBT FACILITY FLEXIBILITY
27 Apr 16
Market Impact: Positive. WesternZagros has amended its US$200 mm unsecured and undrawn credit facility. The revised drawdown dates are now expected to more appropriately match capital spending. The Company's current working capital is sufficient to meet the current commitments in 2016e.
Reports Year-End 2015 Results
17 Mar 16
Production in 4Q15 of 1,952 bbl/d and cash flow of negative US$1 mm were slightly below our estimates. Our 2016e production forecast has been reduced, given shut-in volumes in 1Q16e and delays in drilling the Sarqala-2 well. Our 2016e cash flow estimate has decreased to nil, due to our reduced production forecast and realized pricing becoming pegged and fluctuating with Brent. The development plans for the Kurdamir Block and Garmian Block have not yet been approved by the KRG. Field development plan approval would be a major milestone for the Company, and help alleviate some of the current uncertainty.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.