Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

November 12, 2014 18:47 ET

Condor Announces 2014 Third Quarter Results

CALGARY, ALBERTA--(Marketwired - Nov. 12, 2014) - Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is pleased to announce the release of its Unaudited Interim Consolidated Financial Statements for the three and nine months ended September 30, 2014, together with the related Management's Discussion and Analysis. 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 2014 highlights include:

  • During 2014 the Company completed the sale of its 66% participating interest in the Marsel property for US $88.0 million.

  • Working capital at September 30, 2014 was $69.6 million and the Company has no debt.

  • Production decreased to an average of 158 bopd in the nine months ended September 30, 2014 compared to 318 bopd for the same period in 2013 due to Kazakhstan regulations limiting initial production during the exploration period.

  • Shoba 10 ("Sh-10h"), the first horizontal well at Shoba, was successfully drilled in September 2014 to 1,206 meters inclusive of a 290 meter horizontal section. 98% of the logged horizontal section is oil pay, with porosities averaging 24% and oil saturations averaging 75%. Sh-10h initial test rates include 450 bopd on an 8 millimeter choke. The well is currently flowing 170 bopd on a 6 millimeter choke and being evaluated to assess the optimal flow rate for the zone.

  • Shoba 11 ("Sh-11h"), the second horizontal well at Shoba, was successfully drilled in November 2014 to 1,327 meters inclusive of a 398 meter horizontal section. 97% of the logged horizontal section is oil pay with porosities averaging 22% and oil saturations averaging 76%. Sh-11h is being completed and production is expected to begin in December 2014.

  • The Shoba field is currently producing 375 bopd under trial production and expected to increase in the fourth quarter of 2014 as the second horizontal well at Shoba is completed and brought online.

  • Drilling of the Kiyaktysai North East 205 ("KN-E-205") well is underway to further appraise the KN-E light oil discovery made in 2013 and is expected to reach total depth in December 2014.

  • Taskuduk production facilities are being commissioned and production will re-commence upon the execution of the development contract, which is expected in early 2015.

  • Net income for the nine months ended September 30, 2014 was $25.2 million or $0.07 per share including a $34.5 million gain on the sale of the Marsel property.

  • In November 2014, the Government of Kazakhstan approved a force majeure extension to the Zharkamys exploration period due to extreme weather conditions which impacted exploration activities. The exploration period has been extended for five months until February 6, 2016. The required addendum to the Zharkamys exploration contract is anticipated to be completed in the fourth quarter of 2014 with no expected changes to the minimum work program.

About Condor

Condor is a Canadian based oil and gas company with a 100% interest in the exploration rights to the 3,777 square kilometer Zharkamys West 1 Territory located in Kazakhstan's PreCaspian basin. The Company is listed on the TSX under the symbol "CPI".

Advisory on 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 news release include, but are not limited to: information concerning the timing of planned drilling and development operations; projections and timing with respect to crude oil production; production results provided are not necessarily indicative of long term performance or ultimate recovery; the timing and ability to obtain various approvals and permits including development contracts and amendments to the exploration contract; and changes, if any, to the minimum work program. 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. Condor's operations are also subject to certain other risks and uncertainties inherent with oil and gas operations and additional information on these and other factors that could affect Condor's operations and financial results. These factors are discussed in greater detail under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form which may be accessed through the SEDAR website (www.sedar.com). 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.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Condor Petroleum Inc.
    Don Streu
    President and CEO
    403-201-9694

    Condor Petroleum Inc.
    Sandy Quilty
    Vice President of Finance and CFO
    403-201-9694