CALGARY (CP) - Western Oil Sands
(TSX:WTO), a partner in a major oilsands project in northern
Alberta, has signed a deal with the Kurdistan regional government
for an oil and gas exploration program in northern Iraq.
The deal will allow Western subsidiary WesternZagros Ltd. to explore
a sizable block in the Zagros Fold Belt of Kurdistan.
The transaction is expected to close in the coming months, and
carries a minimum exploration commitment by Western of $45 million
US over the first four years.
"Western is one of the first companies to sign an (exploration and
production sharing agreement) in a highly prospective,
under-explored region in Kurdistan," the Calgary company's chairman
Guy Turcotte said in a statement late Tuesday.
"This opportunity is particularly attractive because it requires a
modest capital investment over the initial period . . ., while
offering the potential of large, long-life reserves."
The federal region of Kurdistan is largely underexplored and is
close to major Iraqi oilfields around Kurdish city of Kirkuk that
have been producing for decades. It's administered by the Kurdistan
regional government, which has expressed a strong desire for foreign
expertise and investment.
Western's main asset a 20-per-cent stake in the Athabasca Oil Sands
project, which it owns along with Shell Canada Ltd. (TSX:SHC) and
Chevron Canada Ltd. (NYSE:CVX).
On the Toronto Stock Exchange on Tuesday, Western's shares closed
down 33 cents at $32.47.
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