Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

November 12, 2013 19:20 ET

Condor Announces 2013 Third Quarter Results

CALGARY, ALBERTA--(Marketwired - Nov. 12, 2013) - Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is pleased to announce the release of its Unaudited Interim Consolidated Financial Statements for the period ended September 30, 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, unless otherwise stated.

Q3 2013 highlights include:

  • Bank guarantees totaling US$83.0 million have been received pursuant to the binding agreement signed in the second quarter for the sale of the Company's 66% participating interest in the Marsel property for a total of US$88.0 million. All commercial conditions for closing have been satisfied and completion of the transaction is expected in the fourth quarter following receipt of the outstanding waivers and consents from the Government of Kazakhstan.

  • The Zharkamys exploration period was extended for an additional two year term until August 27, 2015.

  • The Government of Kazakhstan approved the expansion of the Zharkamys territory by 45% or 1,167 km2.

  • Condor raised $15.0 million by issuing a senior unsecured note which allows the Company to accelerate exploration and development activities at Zharkamys during the interim period until the Marsel Transaction is completed.

  • Production increased to an average of 318 bopd for the nine months ended September 30, 2013 compared to 98 bopd for the same period of 2012, due mainly to Shoba trial production and as a result, Company revenues increased 231% to $3.3 million from $1.0 million.

  • Completion operations on KN-E-201 and KN-E-202 have finished and the wells are now undergoing flow and pressure build up testing to determine deliverability and reservoir properties.

About Condor Petroleum Inc.

Condor is a Canadian oil and gas company with assets in Kazakhstan. Condor holds a 100% interest in the exploration rights to the 3,777 km2 Zharkamys West 1 Territory, located in Kazakhstan's Pre‐Caspian basin, and a 66% interest in Marsel Petroleum LLP which has the exploration rights to the 18,500 km2 Marsel territory located in Kazakhstan's Chu-Sarysu basin. The Company is listed on the TSX under the symbol "CPI".

Forward-Looking Statements

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 and timing of the disposition of Marsel; the anticipated use of proceeds of the senior unsecured note; information concerning the timing and ability to obtain various regulatory approvals; the results, timing and completion of the Company's discovery wells; the timing of planned well testing and drilling operations; results provided are not necessarily indicative of long term performance or ultimate recovery; the potential for the expanded acreage; the addendum to the Zharkamys exploration contract for the territory expansion; 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 disposition of Marsel, including the consents and waivers of the Government of Kazakhstan will not be satisfied; regulatory changes; the timing of regulatory approvals; in the event the Marsel disposition does not close, Condor may need to pursue other sources of financing, which may or may not be available, in order to fund its on-going operations and repay the senior unsecured note on the maturity date; the Company's ability to continue as a going concern; the ability of the Company to obtain financing on terms acceptable to the Company; risks that the addendum to the Zharkamys exploration contract related to the expansion territory will not be approved or executed; risks that the expansion area will be reduced or changed. 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.

Contact Information

  • Condor Petroleum Inc.
    Don Streu
    President & Chief Executive Officer
    (403) 201-9694

    Condor Petroleum Inc.
    Sandy Quilty
    Vice President, Finance & Chief Financial Officer
    (403) 201-9694
    www.condorpetroleum.com