Macquarie Equities Research Maintains OUTPERFORM Rating for WesternZagros Resources

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Macquarie Equities Research maintained its OUTPERFORM rating for WesternZagros Resources (WZR:TSX) and left its target share price of C$1.45 unchanged. This target price is based on a multiple of 1x RENAV. The exploration and production company's stock closed at C$0.52 on August 12. The firm's stock has had a low of $C0.37 and a high of $C1.00 in the last 52 weeks.

WesternZagros announced its Q2 results on August 12, revealing that capital spending for the quarter was $18.4 million. This reported capital spending was on track with Macquarie's predictions. The Alberta-based company had $46.7 million in net working capital as of June 30, 2011, which included $50.7 million in cash and cash equivalents. WesternZagros is currently sitting on $51 million in cash, which should provide enough funding so the company can complete the drilling of Mil Qasim-1.

The company has several operations planned for the second half of 2011. WesternZagros will soon begin work on the Mil Qasim exploration well, which exists on the Garmian block. The company is also expected to perform some drilling in the Kurdamir-2 appraisal well, as well as test the Sarqala well.