Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

July 26, 2011 16:28 ET

Condor Provides Zharkamys West 1 Operations Update

CALGARY, ALBERTA--(Marketwire - July 26, 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 in Kazakhstan (the "Zharkamys Territory").

Shoba production tests: A downhole pump has been installed on the Shoba-1 well in preparation for a 90 day production test. Surface test equipment is being mobilized / hooked up and oil flow is targeted to commence in early August. Bottom hole samples have been collected on the Shoba-2 well and its 90 day production test is also targeted to commence in August. A 90 day production test on Shoba-3 is expected to commence in September.

The service rig that has been operating at Shoba is relocating to the Taskuduk W3 well, which successfully penetrated a separate oil-bearing Triassic formation. Using recently acquired 3D seismic data, Condor plans to test another 5 meter sand package identified at Taskuduk W3.

Taskuduk SE-1 well results: Taskuduk SE-1 was drilled to a total depth of 953 meters. Commercial quantities of hydrocarbons were not encountered and Condor plans to abandon the well. Condor plans to move the drilling rig from Taskuduk SE-1 to the Ebiety-1 location and commence drilling in August.

To date, four Triassic 'horn-play' structures have been drilled and two of these (Shoba and Taskuduk West) have encountered commercial hydrocarbon quantities. Three of five wells drilled in the Zharkamys Territory in 2011 have been successful.

3D Seismic acquisition: Operations are ongoing to acquire 1,280 sq. km of 3D seismic data in the eastern and southern portions of the Zharkamys Territory to image shallow Triassic plays as well as deeper Sub-Canopy plays. Condor plans to complete this program in Q4 2011, following which 90% of the Zharkamys Territory will have coverage with high resolution 3D seismic data. The initial tranche of processed seismic data, which is expected to be received by Condor in mid September, will be used to generate additional prospects for Condor's 2012 exploration program.

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 (through its wholly‐owned subsidiary, Falcon Oil & Gas Ltd. LLP) 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. 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 Zharkamys Territory and Condor's targets, goals, objectives and plans (including the Company's drilling, production testing, well abandonment and seismic acquisition 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