WesternZagros Successfully Closes the Crest Strategic Investment and the Amended Garmian PSC
CALGARY, ALBERTA--(Marketwire - Aug. 13, 2012) -
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WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has closed its previously announced strategic investment with Crest Energy International LLC ("Crest") whereby Crest has purchased from WesternZagros, through a non-brokered, private placement, 40,714,286 Common Shares of the Company at a price of Cdn$1.40 per share for gross proceeds of $57 million. Crest now holds approximately 9.88 percent of the Company's issued and outstanding Common Shares. The Common Shares issued to Crest are subject to a contractual hold period until March 29, 2013, pursuant to the terms of the investment agreement (the "Agreement") entered into between the Company and Crest on August 6, 2012.
In addition, WesternZagros has concluded the successful execution of the Amended Garmian Production Sharing Contract ("PSC") with respect to the Third Party Participant ("TPP") assignment in the Garmian Block. WesternZagros received approximately Cdn$83 million from Gazprom Neft Middle East B.V. The Amended Garmian PSC also provides for a reconciliation of approximately Cdn$27 million with the Kurdistan Regional Government which has been completed. The net amount retained by WesternZagros is Cdn$56 million.
Eric Stoerr, of Crest, has been appointed to the WesternZagros Board of Directors. Mr. Stoerr has more than 19 years of experience in commodities related businesses and banking including investment and commercial banking, commodity trading and business development. Prior to managing Crest's investments in energy and natural resources, Eric Stoerr was Managing Director at The Royal Bank of Scotland, North American Energy Finance Group. He holds a BSc in Business Administration from Skidmore College, Saratoga Springs, NY and a Masters in Business Administration from Tulane University, New