Nikolay Tomov
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WesternZagros Resources Ltd. (CVE:WZR), (PINK:WZGRF) Stock Notes a 52-week High on a Large Volume

by Nikolay Tomov May 31, 2011
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The shares of WesternZagros Resources Ltd. (CVE:WZR), (PINK:WZGRF) went out of the trading borders in which they were during the last four months. They made this in a style, producing a new 52-week high of $0.74 on the Canadian market yesterday. No new announcements were released on Monday, but there was news from last Thursday. Perhaps, it has contributed to the rise of the stock.

The advance was significant indeed. WZR jumped by almost 23% and closed at $0.70. The volume was huge too and confirmed the progress of the shares. The turnover reached 2.45M, which beats 7.5 times the daily average. This is also a trading record for WesternZagros in 2011.

WestermZagros_-_Chart_-_31_May_2011.jpgAs mentioned, there was a company announcement issued on Thursday. WesterZagros informed to have secured Viking Drilling Rig #10 to drill the Mil Quasim-1 well. As the company states, the "Mil Qasim-1 well site construction is near completion with the anticipated spud date of the well in July 2011".

WesternZagros is an international natural resources company engaged in acquiring properties, developing and producing crude oil and natural gas in Iraq. In addition to the positive news about the new drilling rig, there are other favorable factors. They give us enough confidence that further advance in the stock price is possible.

WesternZagros finished 2010 with a solid as a rock cash position of $31.48M and a working capital of $37.5M. Besides, the company looks underestimated by traders as its market value is below the net worth of the business.

WestermZagros_-_Logo.jpgThere are only a few negative facts about WesterZagros. It is normal for a company in the exploration stage to incur losses. Still, a net loss of $5.75M for 2010 is probably a bit too much and seems somewhat unpleasant. Till the end of the last year, the accumulated deficit was $45.48M.

First Western should reach the production phase, only then we can feel more certain about the successful future of the company.

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