CALGARY, ALBERTA -- (Marketwired) -- 05/10/13 -- Condor Petroleum Inc. ("Condor" or the "Company") (TSX: CPI) is pleased to announce the release of its unaudited Consolidated Financial Statements for the period ended March 31, 2013, together with the related Management's Discussion and Analysis ("MD&A"). These documents will be made available under Condor's profile on SEDAR at www.sedar.com and on the Condor website at www.condorpetroleum.com. All financial amounts in this news release are presented in Canadian dollars.
Q1 2013 highlights include:
Marsel territory -- On April 22, 2013, Condor's wholly owned subsidiary entered in to a binding agreement to sell its 66% participating interest in, and certain indebtedness of, Marsel for US $88.0 million, subject to various waivers and consents from the government of Kazakhstan and subject to the satisfaction of certain commercial conditions typical for transactions of this nature. Zharkamys West 1 territory -- Kazakhstan production increased to 559 bopd in the first quarter of 2013 compared to 22 bopd in the first quarter of 2012 due mainly to Shoba trial production. As a result, Company revenues increased 192% to $2.3 million. -- The KN-E-201 well was drilled and completed during the quarter and discovered oil; 58 meters of net hydrocarbon pay was identified from wireline and mud logs with an additional 16 meters of pay indicated from mudlogs without wireline log data. -- The first appraisal well, KN-E-202, was spud in April 2013 and the target zone is expected to be penetrated in May 2013. -- The ninety day production testing program for the K N-E-201 discovery well has been approved and testing is expected to commence as planned in June 2013. -- Approval for a two year exploration period has been granted which extends the exploration term until August 27, 2015 -- Detailed seismic interpretation and geologic mapping have generated an exploration portfolio of 66 prospects ranging from shallow Cretaceous to deep Devonian targets and an internal Company estimate of 1,550 MMboe unrisked mean recoverable resources.
About Condor Petroleum Inc.
Condor is an oil and gas corporation engaged in the exploration for, and the acquisition, development and production of oil and natural gas in Kazakhstan and Canada. Condor holds a 100% interest in the oil and natural gas exploration rights to the 2,610 km2 Zharkamys West 1 territory located in Kazakhstan's Pre-Caspian basin, a 66% interest in the oil and natural gas exploration rights to the 18,500 km2 (gross) Marsel territory located in Kazakhstan's Chu-Sarysu basin and operates certain properties and holds non-operated working interests in a number of other properties in Alberta, Canada.
This press release includes information pertaining to internal Condor generated estimates of Company resources effective February 8, 2013, which were prepared by a qualified reserves evaluator in accordance with National Instrument 51-101.
Statements relating to resources are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. Many of these assumptions are subject to change and are beyond the Company's control.
The resource estimates of Condor's properties described herein are estimates only. The actual resources may be greater or less than those calculated. Estimates with respect to resources that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and analogy to similar types of resources, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same resources based upon production history will result in variations, which may be material, in the estimated resources.
Prospective Resources disclosed herein are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery (geological chance of success) and a chance of development (economic, regulatory, market and facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. These estimates have not been risked for either chance of discovery or chance of development. There is no certainty that any portion of the Prospective Resources will be discovered and, if discovered, there is no certainty that it will be developed or, if it is developed, there is no certainty as to either the timing of such development or whether it will be commercially viable to produce any portion of the resources. Unless otherwise stated, any reference to Prospective Resources refers to Gross, Mean Recoverable, Prospective Resources (Unrisked).
All statements other than statements of historical fact may be forward-looking statements. Such statements are generally identifiable by the terminology used, such as "seek", "anticipate', "believe', "intend", "expect", "plan", "estimate", "continue", "project", "predict", "budget', "outlook', "may", "will", "should", "could", "would" or other similar wording. Forward-looking statements in this press release include, but are not limited to, the anticipated completion of the sale of the interests in Marsel, the expected timing for closing of the transaction and the use of the proceeds of the transaction, statements and information with respect to estimates of reserves and/or resources, future production levels, targets, goals, objectives and plans together with the respective timing associated therewith. Forward-looking statements involve the use of certain assumptions that may not materialize or that may not be accurate and are subject to known and unknown risks and uncertainties and other factors, which may cause actual results or events to differ materially from those expressed or implied by such information. Such factors and assumptions include, among other things, risks that the conditions to the transaction including the consents and waivers of the Government of Kazakhstan and certain third parties will not be satisfied, regulatory changes, the timing of regulatory approvals and the ability to obtain sufficient financing on reasonable terms. Condor's operations are also subject to certain other risks and uncertainties including, the effects of weather and climate conditions, fluctuation in interest rates and foreign currency exchange rates, the availability of suppliers and their ability to meet commitments, risks inherent with oil and gas operations, both domestic and international. These factors are discussed in greater detail under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form for the year-ended December 31, 2012. The Company believes that the expectations reflected in these forward- looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not undertake any obligation to update or to revise any of the forward looking information, except as required by applicable law.
Condor Petroleum Inc.
President & Chief Executive Officer
Condor Petroleum Inc.
Vice President, Finance & Chief Financial Officer