Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

June 17, 2011 09:15 ET

Condor's Kiyaktysay North-3 Drilling Update

CALGARY, ALBERTA--(Marketwire - June 17, 2011) - Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) announces that it has reached a total depth of 1,150 meters on the Kiyaktysay North-3 ("KN-3") well on the Zharkamys West 1 contract territory (the "Zharkamys Territory") in Kazakhstan, and that it has completed its wireline logging program.

The KN-3 well encountered 275 meters of Triassic-aged sandstone. Wireline logs identified 4 zones which resulted in 7 meters of net oil pay over a 90 meter interval. However, given the thin nature of the pay zones, KN-3 was deemed to be non-commercial and Condor intends to abandon the well. The Triassic sand package penetrated by the KN-3 well is of older geologic age than the commercially successful Triassic sands recently discovered by Condor at Shoba.

Don Streu, Condor's President and CEO commented: "Although it is unfortunate that KN-3 is not a commercial discovery, our drilling inventory remains intact with numerous prospects. KN-3 penetrated an older section within the Triassic that simply had too much reservoir and not enough shale to create an effective top seal. KN-3 provides us with an important calibration point for this play-type and we plan to incorporate the results into our geological interpretation and risk management for our remaining 2011 drilling program. The fact that oil was encountered on KN-3 further demonstrates the hydrocarbon system is active and widespread in the Zharkamys Territory."

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 Condor's plans to abandon the KN-3 well, Condor's drilling inventory and prospects, the potential of the Zharkamys Territory and the incorporation of drilling results into Condor's geological interpretation and risk management database. 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