Thursday, August 16, 2007
(Financial Times) - WesternZagros, the startup that is being carved out from oil sands developer Western Oil Sands Inc. to explore for oil in Kurdistan autonomous region (Southern Kurdistan), will drill its first well in early 2008, Western said in a statement Tuesday. WesternZagros estimates that its lands, located in the Southern Kurdistani autonomous region of Kurdistan, could contain up to 1.8 billion barrels of oil.
The new company plans to seek a listing on a Canadian stock exchange after it's spun off from Western as a result of the oil sands company's recently announced $6.5-billion sale to Marathon Oil Corp. WesternZagros said it will be capitalized with approximately $134-million, including $82.5-million in cash from Western, $10-million from a private placement of shares to management and directors, $41-million from the exercise of warrants.
Under the sale to Marathon, Western shareholders will receive one share of WesternZagros and one tenth of a warrant to purchase additional common shares. Some of Western's directors and executives will move to similar jobs at the new company. David Boone, Fred Dyment, Randall Oliphant and John Frangos will sit on the board. Jim Houck and David Dyck, Western's current CEO and CFO, will continue in those roles at WesternZagros.