Unconventional Oil

[Arctec]

Exploration Contract Ratified by Kurdistan Regional Government
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/

CALGARY, March 2 /CNW/ - WesternZagros Limited ("WesternZagros"), a
wholly-owned subsidiary of Western Oil Sands Inc. ("Western"), received
confirmation today that its Exploration and Production Sharing Agreement
("EPSA") has been ratified by the Kurdistan Regional Government ("KRG") and
confirmed by His Excellency Nerchivan Barzani, Prime Minister of Iraqi
Kurdistan. As part of the ratification process, WesternZagros has worked with
the KRG to finalize its EPSA area boundary and other key terms in line with
draft petroleum legislation. The final EPSA area encompasses 2,120 square
kilometers (approximately 524,000 acres) and holds a number of high potential
prospects.
Dr. Ashti Hawrami, the KRG's Minister for Natural Resources commented,
"We're delighted WesternZagros is moving forward with its exploration program.
WesternZagros is one of the most professional companies in the Kurdistan
region of Iraq and we welcome the investment and expertise they bring to the
region. The KRG is committed to providing a strong investment environment for
companies such as WesternZagros."
Kurdistan offers tremendous long-term growth potential and WesternZagros
is committed to working alongside the government and the people of the
Kurdistan region to ensure its goals are consistent with the aspirations of
the new democratic regime over the long-term. WesternZagros is encouraged by
recent developments with respect to the draft Federal Oil Law which has been
approved by the Iraqi cabinet for consideration by the Iraq Council of
Representatives.

About Western Oil Sands

Western Oil Sands Inc. is a Canadian corporation listed on the Toronto
Stock Exchange under the symbol WTO. Our vision is to create shareholder value
through the opportunity capture and development of large, world-class
hydrocarbon resources. Our primary asset is our 20 per cent undivided interest
in the Athabasca Oil Sands Project. Western is also pursuing initiatives
related to in-situ and technology development as well as downstream
opportunities. WesternZagros Limited, a wholly-owned subsidiary of Western, is
pursuing conventional oil and gas exploration opportunities in the Federal
Region of Kurdistan in Northern Iraq. For additional information, visit
www.westernoilsands.com.

Source: Western Oil Sands
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