Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

May 13, 2015 17:41 ET

Condor Announces 2015 First Quarter Results

CALGARY, ALBERTA--(Marketwired - May 13, 2015) - 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 months ended March 31, 2015, 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.

Q1 2015 Highlights

  • Preparations continue to begin drilling the KN-501 Primary basin well. The well is targeting 67 mmboe unrisked mean prospective resources (internal Company estimate - see Reserve and Resource Advisory) and planned to reach 4,250 meters. The well offsets the Company's play opening KN-E Primary Basin discovery by 8 kilometers and is located under the same salt dome. The KN-501 well location is under construction and drilling is expected to commence in June.

  • The Zharkamys exploration period was recently extended for an additional ten months to December 14, 2016 and the exploration contract will be amended in due course.

  • Working capital as of March 31, 2015 was $59 million and the Company has no debt.

  • Production increased 94% to an average of 318 bopd for the three months ended March 31, 2015 from 164 bopd for the same period in 2014, despite temporarily suspending Shoba operations on March 15, 2015 for an indeterminate period due to constraints in domestic refining capacity and low prices for crude oil and refined crude oil products. The first quarter production increase relates to the positive performance of the two Shoba horizontal wells which were drilled and completed in the fourth quarter of 2014, representing the first shallow horizontal wells drilled in Kazakhstan's Pre-Caspian basin. Flow rates on both wells have been restricted thus far to minimize the potential for water and gas coning.

  • Kazakhstan is experiencing an oversupply of refined crude oil products, including diesel, which is causing downward pricing pressures on domestically produced diesel and on crude oil. During the past few months Kazakhstan refineries have been either not operating or offering prices below the Company's cost of operations. The Government of Kazakhstan recently reduced export customs duties on crude oil and certain refined products and placed a temporarily ban on imports of gasoline and diesel fuel from Russia. Both measures are intended to help alleviate the domestic market oversupply.

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 Pre‐Caspian basin. The Company is listed on the TSX under the symbol "CPI".

Resource advisory

This news release includes information pertaining to internal Condor generated estimates of Company resources effective January 20, 2015, 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. 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).

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 includes, but is not limited to, information concerning: the ability to commence and the timing of planned exploration and development activities; the timing and ability to execute contracts with drilling equipment suppliers and service providers; the timing and ability to extend the Zharkamys exploration period and execute amendments to the Zharkamys exploration contract; the timing and duration of production interruptions; projections and timing with respect to crude oil production; production results provided may not be indicative of future production rates, capabilities or ultimate recovery; the timing and impact of any measures by the Government of Kazakhstan on domestic refinery operations, the domestic market oversupply and domestic prices for oil, diesel and other refined products; the timing and ability to access domestic and export sales markets for crude oil; and the estimates of reserves and future resources. 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 or
    Sandy Quilty, Vice President of Finance and CFO
    403-201-9694
    www.condorpetroleum.com