Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

April 12, 2011 08:44 ET

Condor Petroleum Inc. Announces the Closing of its $80 Million Initial Public Offering

CALGARY, ALBERTA--(Marketwire - April 12, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS

Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is pleased to announce that it has completed its initial public offering of 57,142,857 common shares at a price of CDN$1.40 per common share for total gross proceeds of CDN$80,000,000 (the "Offering"). The Offering was carried out by a syndicate of investment dealers led by FirstEnergy Capital Corp., and includes UBS Securities Canada Inc., Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc., and Jennings Capital Inc. (collectively, the "Agents"). The Corporation has granted to the Agents an option, exercisable, in whole or in part, from time to time, for up to 30 days following closing, to offer for sale up to an additional 8,571,428 common shares at a price of CDN$1.40 per common share to cover over allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, gross proceeds of the offering will be CDN$92,000,000. The common shares of the Corporation will commence trading today on the Toronto Stock Exchange under the symbol "CPI".

The final prospectus filed in connection with the Offering also qualifies for distribution up to 36,000,000 common shares issuable on the deemed exercise of special warrants issued by the Corporation pursuant to a special warrant offering by the Corporation that was completed on December 15, 2010 and December 20, 2010 (the "Special Warrant Financing"). The deemed exercise of the special warrants will occur today at 4:30 p.m. Eastern Standard Time.

The net proceeds from the Offering and the Special Warrant Financing are expected to be used to finance the continuation of the Corporation's oil and natural gas exploration programs in Kazakhstan, to initiate sustainable oil production in Kazakhstan, to fund the Corporation's 2011 and 2012 exploration drilling and seismic programs, and to explore and pursue opportunities that may increase shareholder value.

An electronic copy of the final prospectus is available on the SEDAR website at www.sedar.com.

United States Advisory

The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.

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.

Forward-Looking Statements

This press release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Condor, including, without limitation, those listed under the headings "Special Note Regarding Forward-Looking Statements" and "Risk Factors" in Condor's final prospectus. Forward-looking information in this press release includes, but is not limited to, information concerning the Offering (including the exercise of the over-allotment option), the TSX listing, the deemed exercise of the special warrants and the proposed use of proceeds from the Offering and the Special Warrant Financing. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this release and, other than as required by applicable securities laws, Condor does not assume any obligation to update or revise them to reflect new events or circumstances.

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