WesternZagros Resources Ltd. Completes Sale of $100M 4 Per Cent Convertible Senior Unsecured Notes

WesternZagros Resources Ltd. (TSX VENTURE:WZR) (“WesternZagros”) completed two non-brokered private placements for a total of $100-million aggregate principal amount of 4 per cent Convertible Senior Unsecured Notes of WesternZagros to investment funds managed by Paulson & Co. Inc., as well as certain other institutional investors, including Crest Energy International LLC (“Crest”). The convertible notes have a face value of $1,000 per note, a coupon of 4 percent, a maturity date of December 31, 2015, and will be convertible into common shares of WesternZagros at the option of the holder at a conversion price of $1.45 per common share. A portion of the proceeds from the private placement was used to repay the remaining Crest debt of US$44.5 million plus accrued interest as per the terms of the loan agreement between WesternZagros and Crest. The remaining proceeds will be used to fund the company's capital and operating activities.

WesternZagros is an international natural resources company focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq.

Norton Rose Fulbright Canada LLP represented WesternZagros with a team that included Lianne Tysowski, Peter Allegreto and Zahra Allidina (corporate/securities); and Marlow Gereluk (finance) and Darren Hueppelsheuser (tax).

Goodmans LLP represented Paulson & Co. Inc. with a team that included William Gorman and Caroline Wang (corporate and securities); and Jeffrey Citron (finance) and Maureen Berry (tax).


Jeffrey A. Citron Bill Gorman Lianne J. Tysowski Caroline C.H. Wang Zahra Allidina