CALGARY, AB--(Marketwired - January 10, 2017) - Condor Petroleum Inc. ("Condor" or the "Company") (TSX: CPI) is pleased to announce that it has entered into a loan agreement to establish a US$10 million secured non-revolving credit facility (the "Credit Facility").
Pursuant to the Credit Facility, Condor may borrow US$10 million in a single advance from the lender, (the "Loan Proceeds"). The Credit Facility bears interest at 14%, matures 3 years from the date the Loan Proceeds are received (the "Receiving Date"), provides for a one year repayment holiday whereby interest for the first year is due on the first anniversary of the Receiving Date followed by eight payments of US$ 1,250,000 of principal plus interest due quarterly in arrears. The lender will also receive a warrant certificate exercisable into one million common shares of Condor at price of CA$ 2.35 per share which will expire three years from the Receiving Date. Condor expects to receive the Loan Proceeds in January 2017, the receipt of which is subject to certain customary conditions precedent including, but not limited to, the execution of various security documents.
The Loan Proceeds will be used to fund capital expenditures related to drilling, infrastructure and workovers at the Company's Poyraz Ridge field and for general corporate purposes. Construction of a 15 MMscf/day gas facility, multi-well drilling and completion program and a 6" sales pipeline continue on schedule and the project is targeting first gas by mid-2017. The Loan Proceeds will allow a portion of the Company's existing working capital to be used for exploration activities adjacent to the Poyraz Ridge field, which is a near term focus given the recent positive results of the Poyraz Ridge drilling program.
Condor is a Canadian based oil and gas company with a 100% working interest in four contiguous operating licenses covering 171 square kilometers located in the Gallipoli Peninsula in the Republic of Turkey, a 100% interest in the production rights to the Shoba and Taskuduk oilfields and a 100% interest in the exploration rights to the 3,777 square kilometer Zharkamys West 1 property located in the Pre-Caspian basin in the Republic of Kazakhstan. Condor 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", "appear", "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 and ability to satisfy the conditions and execute the various security documents and receive the Loan Proceeds, if at all; the use of the Loan Proceeds, if any; the timing and ability to obtain various approvals for the Company's exploration and development activities; the expectations, timing and costs of exploration, appraisal and development activities; the timing and ability to conduct drilling, completion and testing operations; the ability of the drilled wells to become future gas producing wells; the timing and ability to develop the gas reserves, construct the required infrastructure and to commence producing and selling gas; and funding future development and exploration activities.
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 following is a summary of abbreviations used in this news release:
|| ||United States dollars
|| ||Canadian dollars
|| ||Million standard cubic feet
The TSX does not accept responsibility for the adequacy or accuracy of this news release.