The junior explorer, together with partner Talisman Energy (TSE:TLM), said they are planning additional consultation with the Ministry of Natural resources of Kurdistan to refine the development plan.
During this period, operations on the block and the drilling of the Kurdamir-4 well will be deferred, WesternZagros said.
Future drilling plans will align with the redefined development plan once approved by the local government.
"Taking this time out in the near-term development of the Kurdamir Block will provide the opportunity to refine the development initiatives between WesternZagros, Talisman and the KRG," said WesternZagros' chief executive officer, Simon Hatfield.
"Our Kurdamir Block holds strong oil and gas production potential and we look forward to redefining a plan that is acceptable to the co-venturers and the KRG."
At Kurdamir, contingent resources as at September 1 for the Oligocene and the Eocene reservoirs were estimated to have a net present value of US$1.55 billion.
The natural resources company holds a 40 percent working interest in two production sharing contracts in the Kurdamir region of Iraq, known as Garmian and Kurdamir, with the Kurdistan regional government.
At the Kurdamir block, Talisman Energy, which is also the operator, holds a 40 percent working interest, while the Kurdistan regional government holds the remaining 20 percent.
WesternZagros also said Tuesday that the rig on its Garmian block has moved from the successful Sarqala-1 workover test to the Hasira-1 well, where preparations are underway to test the light oil discovery in the Mio-Oligocene reservoir. Results are expected in December.
Activities are also underway to increase the process capacity of the existing production facility at Garmian to 15,000 barrels per day, it added.
WesternZagros filed a development plan for its Garmian block in June, after declaring commercial status last December. The plan includes three phases, targeting oil production of 25,000 to 35,000 barrels per day in 2015. Production is planned to begin from the Sarqala-1 well, at rates up to 10,000 barrels per day later in 2014.
The company said it is making "good progress" in discussions with the Kurdistan regional government on the Garmian development plan.