CALGARY, AB--(Marketwired - January 12, 2017) - Condor Petroleum Inc. ("Condor" or the "Company") (TSX: CPI) is pleased to announce drilling results of the Poyraz West 2 appraisal well in Turkey.
Poyraz West 2 is a step-out appraisal well testing the southwest extension of the field. Based on wireline logs, the well encountered 142 meters of net pay which includes 60 meters of a newly discovered Pre-Sogucak reservoir. The new reservoir is stratigraphically older and deeper than the previously evaluated Gazhanedere and Sogucak intervals and consists of interbedded conglomerates and sandstones. Production casing has been set and the well will be completed and tested prior to Poyraz Ridge first gas, which is on schedule to commence in mid-2017.
Don Streu, Condor's President and CEO noted, "We are extremely pleased that all four wells from this recent drilling campaign have encountered significant gas columns. The wells have expanded the gas charged reservoirs in the Poyraz Ridge structure by identifying new and deeper pay zones which should positively impact reserves. The existing 3D seismic indicates that the pre-Sogucak reservoir is extending to the northwest, suggesting it is a new geologic play with lateral extent."
The Poyraz West 2 discovery also serves to enhance the prospectivity of similar looking structures located within the license area. Planning is underway to drill the Yakamoz 1 exploration prospect this year, which is only 2 km north of Poyraz Ridge and shares many of the same attributes. Additional 3D seismic may also be acquired in the near term. The Company recently established a US$10 million credit facility which should provide sufficient funding to execute these programs and achieve Poyraz Ridge first gas. The receipt of the loan proceeds from the credit facility is subject to certain customary conditions precedent including, but not limited to, the execution of various security documents. The loan proceeds are expected to be received in January 2017.
Operations have shifted to completion and testing activities for the recently drilled wells and testing of Poyraz 3 has commenced. Prior to 'cleaning up' and establishing stabilized flow rates, completion fluid and paraffin (wax) were observed in the surface testing equipment, hindering the ability to accurately test the well. Additional equipment is being installed before continuing to flow Poyraz 3. In the meantime, the completion rig has mobilized to Poyraz 5 and has started completion and testing activities on that well.
Condor is a Canadian based oil and gas company with a 100% working interest in four contiguous operating licenses covering 171 square kilometers located in the Gallipoli Peninsula in the Republic of Turkey, a 100% interest in the production rights to the Shoba and Taskuduk oilfields and a 100% interest in the exploration rights to the 3,777 square kilometer Zharkamys West 1 property located in the Pre-Caspian basin in the Republic of Kazakhstan. Condor is listed on the TSX under the symbol "CPI".
Advisory on Forward-Looking Statements
All statements other than statements of historical fact may be forward-looking statements. Such statements are generally identifiable by the terminology used, such as "seek", "appear", "anticipate", "believe'', "intend", "expect", "plan", "estimate", "continue", "project", "predict", "budget", "outlook", "may", "will", "should", "could", "would" or other similar wording. Forward-looking statements in this news release include, but are not limited to information concerning; wireline log interpretations including identifying gas bearing intervals, columns and reservoirs; the ability to determine net pay and stratigraphy; the ability and timing to increase reserves based on drilling results, future well completions, testing and production results; the ability to map reserves areas; the ability to identify new geological plays; the ability of the drilled wells to become future gas producing wells; the timing and ability to conduct seismic, drilling, completion and testing operations; the timing and ability to develop the gas reserves, construct the required infrastructure and to commence producing and selling gas; the timing and ability to satisfy the conditions precedent and execute the various security documents and receive the loan proceeds from the credit facility, if at all; the use of the loan proceeds, if any; historical production and testing rates may not be indicative of future production rates, capabilities or ultimate recovery; the timing and ability to obtain various approvals for the Company's exploration and development activities; the expectations, timing and costs of exploration, appraisal and development activities; the ability to use existing geological data as analogues for other prospective structures; and funding future development and exploration activities.
Statements relating to reserves are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated. The reserve estimates described herein are estimates only. The actual reserves may be greater or less than those calculated. Estimates with respect to reserves that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and analogy to similar types of reserves, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result in variations, which may be material, in the estimated reserves. "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.
Forward-looking statements involve the use of certain assumptions that may not materialize or that may not be accurate and are subject to known and unknown risks and uncertainties and other factors, which may cause actual results or events to differ materially from those expressed or implied by such information. Condor's operations are also subject to certain other risks and uncertainties inherent with oil and gas operations and additional information on these and other factors that could affect Condor's operations and financial results. These factors are discussed in greater detail under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form, which may be accessed through the SEDAR website (www.sedar.com). The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not undertake any obligation to update or to revise any of the forward looking information, except as required by applicable law.
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