WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or the "Company") provides a corporate update and an operational update for its Garmian Block in the Kurdistan Region of Iraq.
Interim Order Obtained for Arrangement
The Company has obtained an interim order (the "Interim Order") of the Court of Queen's Bench of Alberta (the "Court") in connection with its plan of arrangement (the "Arrangement") with WZG Acquisition Ltd. ("Crest AcquireCo"), an affiliate of Crest Energy International LLC ("Crest"), pursuant to the provisions of the Business Corporations Act (Alberta). As previously announced on May 12, 2017, under the Arrangement, Crest AcquireCo will provide the Company with the funds necessary for the Company to acquire all of the outstanding common shares of the Company ("Common Shares") (other than one Common Share currently owned by Crest which will be acquired by Crest AcquireCo) and all of the outstanding Class A preferred shares, series 1, of the Company ("Preferred Shares") for cash consideration of $0.28 per share, resulting in Crest AcquireCo becoming the sole shareholder of the Company.
The Interim Order provides for, among other things, the holding of an annual and special meeting (the "Meeting") of the holders of Common Shares ("Shareholders") at 10:00 a.m. (local time) on July 5, 2017 in Calgary, Alberta, to seek Shareholder approval for the Arrangement. Pursuant to the Interim Order, WesternZagros has prepared a management information circular (the "Circular") in connection with the Meeting.
WesternZagros expects to mail the Circular to Shareholders of record as of May 31, 2017 on or about June 8, 2017. The Circular will also be available under the Company's profile on SEDAR at www.sedar.com on or about June 8, 2017. If approved by the Shareholders at the Meeting and by the Court and all other conditions to completion are satisfied or waived, the Arrangement is expected to close on or about July 6, 2017.
All Shareholders are encouraged to vote in person or by proxy at the Meeting. The board of directors of WesternZagros is recommending that Shareholders vote in favour of the Arrangement.
On its Garmian Block and further to its previous news release of April 10, 2017, the Company announces that the operator has completed the installation of surface equipment to expand the Sarqala production facility. Current production for the Sarqala-1 well is approximately 9,500 barrels per day of oil which is in line with the Company's first quarter guidance expectations.
About WesternZagros Resources Ltd.
WesternZagros is an international natural resources company focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds a 40 percent working interest in two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".
SOURCE: WesternZagros Resources Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.