Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

September 19, 2011 09:00 ET

Condor Provides Kazakhstan Operations Update

CALGARY, ALBERTA--(Marketwire - Sept. 19, 2011) - Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is pleased to provide an update on its operations at the Zharkamys West 1 Contract Territory (the "Zharkamys Territory") and the Marsel Contract Territory (the "Marsel Territory") in Kazakhstan.

Zharkamys Territory

Shoba production tests: 90 day production tests on the Shoba-1 and Shoba-2 wells have commenced with combined production rates between 500 and 700 barrels of oil per day. During the respective test periods, the wells will be produced at various rates to establish production potentials. The Shoba-3 well has been completed and the 90 day production test is expected to begin in September.

Taskuduk W-4: Drilling has commenced on the Taskuduk W-4 well. This well is targeting the extension of a sand package that flowed 310 barrels per day at the Taskuduk W-3 well as well as targeting a deeper, untested horizon.

To date, four of the seven wells drilled in the Zharkamys Territory during 2011 have been successful.

3D Seismic acquisition: Condor has now completed the acquisition of 1,280 square km of 3D seismic data in the eastern and southern portions of the Zharkamys Territory. The data images shallow Triassic plays as well as deeper Sub-Canopy plays. Almost 90% of the Zharkamys Territory now has high resolution 3D seismic coverage. The initial tranche of seismic data has been processed and will be used to generate additional prospects for the continued exploration program.

Marsel Territory

Asa-1 Exploration Well: A rig is currently mobilizing to commence drilling the Asa-1 prospect, with an expected spud in October. The Asa-1 well is designed to reach a depth of 2,900 meters and is targeting gas in Devonian sandstones with secondary objectives in the Carboniferous Visean carbonates. The Asa-1 prospect offsets proven gas plays in the Pridorozhnaya and Ortalyk fields.

2D Seismic Acquisition: In August, Condor initiated the acquisition of 900 km of 2D seismic within the Marsel Territory. This program is focused in the southern region of the territory where mapping indicates several large, untested structures with Devonian and Carboniferous potential. The acquisition program is planned to be completed in November while seismic processing is expected to begin in late September.

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. Condor holds a 100% interest in the oil and natural gas exploration rights to the 2,610 sq km Zharkamys Territory, located in Kazakhstan's Pre‐Caspian basin. Condor also holds a 66% interest in Marsel Petroleum LLP which has the exploration rights to the 18,500 sq km Marsel Territory, located in Kazakhstan's Chu-Sarysu basin. 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 production test results of the Shoba-1 and Shoba-2 wells, Condor's targets, goals, objectives and plans, including the Company's production testing, drilling, seismic acquisition and seismic processing plans, together with the timing associated therewith. 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