Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

May 17, 2011 09:36 ET

Condor Completes and Obtains Initial Flowrates from Shoba-1 Discovery Well

CALGARY, ALBERTA--(Marketwire - May 17, 2011) -Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is pleased to announce that it has successfully completed and performed an initial flow test of the Shoba-1 discovery well in Kazakhstan.

The Shoba-1 well initially flowed 250 to 280 barrels per day of 35° API gravity oil from 6.5 meters of perforations at 747.5 m to 754.0 m in the oil pay zone. The well stabilized at a flow rate of 210 bbls of oil per day with 20 psi surface pressure during a 3 day test period. The fluid and flow data information acquired during the initial flow period will be used to aid in the design of a long term production test expected to be performed in the third quarter of 2011. The Corporation anticipates that the well will be put on production with a downhole pump which could further enhance these initial production rates.

Don Streu, Condor's President and CEO commented: "Condor is extremely pleased with initial flow rates from the Shoba-1 well. The information confirms that the deliverability of the Shoba-1 exceeds economic thresholds and moves the project closer to full commercialization".

The service rig that tested Shoba 1 is now being mobilized to complete and obtain initial flowrates from Shoba-2. In addition, the drilling of Shoba-3 has just reached its total depth of 943 meters and a wireline evaluation program is commencing. 46.5 meters of core was recovered through the zone of interest on Shoba-3.

About Condor Petroleum Inc.

Condor is a junior oil and natural gas corporation engaged in the exploration for, and the acquisition, development and production of oil and natural gas resources in Kazakhstan and Canada. For further information see Condor's (final) prospectus, dated March 31, 2011, a copy of which is available under Condor's SEDAR profile at www.sedar.com.

Forward‐Looking Statements

Certain statements in this news release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "may", "will", "should", "could" , "would" or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning the flow test results of the Shoba-1 well, the proposed use of the fluid and flow test data from the Shoba-1 well, the mobilization of a service rig to Shoba-2 and the commencement of a wireline evaluation program at Shoba-3. By its very nature, such forward-looking information requires Condor to make assumptions that may not materialize or that may not be accurate. Forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors and assumptions include, but are not limited to: the results of exploration and development drilling and related activities; imprecision of reserves and resources estimates, ultimate recovery of reserves, prices of oil and natural gas; general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and natural gas prices; the ability to produce and transport crude oil and natural gas to markets; the effects of weather and climate conditions; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Condor. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Condor with Canadian securities regulatory authorities.

Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this news release is made as of the date of this news release and, except as required by applicable law, Condor does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

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