Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

January 20, 2012 09:20 ET

Condor Provides Kazakhstan Operations Update

CALGARY, ALBERTA--(Marketwire - Jan. 20, 2012) - 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

Drilling Update: Zhaman Koblandy 2 (ZhK-2) was directionally drilled to a depth of 2200 meters into the Triassic formation. The well successfully penetrated multiple sand packages with top seals as predicted using the 3D seismic, including the primary target containing 75 metres of continuous net reservoir. The primary target is water bearing at the point penetrated by ZhK-2, but the wellbore is also 125 meters below the structural culmination. This provides the opportunity for updip attic oil that is being evaluated as a future drilling opportunity. ZhK-2 will be abandoned and have a total well cost of $1.7 MM, which is approximately 29% below the AFE amount.

The 2012 Zharkamys budget includes drilling up to 15 wells, which are comprised of 11 exploration wells (six deep and five shallow) and four Shoba appraisal wells.

Testing Activities: The 90 day production test on Taskuduk W-3 (TasW-3) recently commenced. Initial flow rates from a 5 meter net pay interval were 280 barrels per day of 35 API gravity oil. The well is currently shut-in for a pressure build up and testing will continue into March 2012.

Regulatory approval to complete Taskuduk W-4 (TasW-4) is anticipated in February 2012. The 90 day production test on TasW-4 will follow shortly afterwards. This well penetrated 19 meters of net oil pay within two Triassic intervals.

Reserve volumes (proved + probable) associated with the 2011 program are being determined by Condor's reserves auditors and will be disclosed in Q1 2012.

3D seismic: Condor completed acquisition of 2,580 square km of 3D seismic within the Zharkamys Territory in Q4 2011, providing 87% coverage of the entire Territory. Data processing is ongoing and the preliminary 'fast track' volumes have been received and are being interpreted. The exploration portfolio continues to expand with play types that range from Cretaceous to Permian targets, including new plays that appear to be fully salt-encapsulated.

Marsel Territory

Drilling Update: The Asa-1 well depth is currently at 1900 meters and programed to reach a total depth of 2,900 meters. The primary target (Devonian sandstones) is approximately 600 meters from the present depth. The Asa-1 well offsets proven gas plays in the Pridorozhnaya and Ortalyk fields.

Drilling of 2 additional Marsel wells is included in the 2012 budget.

2D Seismic: Acquisition of a 900 km 2D seismic program has been completed in the southern region and data processing is ongoing. Initial review of the data indicates several large, untested structures with Devonian and Carboniferous potential, which continue 'on trend' with the already proven Pridorozhnaya and Ortalyk gas fields.

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 square 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 square 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 status of ZhK-2 and Asa-1, testing activities at Taskuduk, processing 3D and 2D seismic, Condor's targets, goals, objectives and plans, including the Company's drilling, completion, production testing, 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