* Says no assurance that funding will be available
* Had deficit of $45.5 mln at the end 2010 (Adds details)
April 12 (Reuters) - WesternZagros Resources Ltd , which is engaged in exploring and producing crude oil and natural gas in Iraq, raised doubts about its ability to operate as a “going concern” unless it secures additional funding.
WesternZagros is one of the 40 foreign companies that have invested in the semi-autonomous northern region of Iraq, Kurdistan, and holds a production sharing contract with the regional government.
The company said the funding depends partly on the resolution of the contract negotiations and the ability to export from the semi-autonomous region.
Some companies began exporting oil from Kurdistan in February after years of wrangling between Kurdistan and Iraq, but the key issue of payments has still not been resolved. [ID:nLDE72912O]
Getting more funding will also depend on the resolution of the remaining political disputes in the war-torn country and the results of the company’s exploration activities, WesternZagros said in a statement.
An Iraqi government official had said earlier in April that Iraq and Kurdistan are likely to reach an agreement in the second half of 2011. [ID:nLDE73422D]
WsternZargos, which posted a net loss of $5.7 million, or 3 cents a share last year, said it had an accumulated a deficit of $45.5 million at end of 2010.
There is no assurance that sufficient funds will be available in the future, said the company, which has a market value of about $130 million.
WesternZagros shares closed at 6 Canadian cents on Monday on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Saumyadeb Chakrabarty)