Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

April 18, 2011 08:00 ET

Condor's Shoba 2 Appraisal Well Encounters 58 meter Hydrocarbon Column

CALGARY, ALBERTA--(Marketwire - April 18, 2011) - Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is pleased to announce that its Shoba 2 appraisal well has reached a total depth of 900 meters and encountered a 58 meter continuous hydrocarbon column in the Triassic zone. Shoba 2 net pay is comprised of 15 meters of oil and 24 meters of gas in sandstone reservoirs. The Shoba 2 well is located on the 2,610 km2 Zharkamys West 1 contract territory (the "Zharkamys Territory"), situated in Kazakhstan's Pre-Caspian basin.

The Shoba 2 well appraised the successful Shoba 1 discovery previously made in March 2011. The Shoba 1 well was drilled to a total depth of 899 meters and encountered a 34 meter continuous hydrocarbon column in the same Triassic sands. Shoba 1 net pay is comprised of 19 meters of oil and 5 meters of gas.

The hydrocarbon pay evaluation for both Shoba wells was determined using wireline petrophysical and pressure data, cuttings descriptions and gas readings from mud logs. The oil gravity determined from formation pressure data indicates light crude oil in the range of 35 to 41 degrees API.

Don Streu, President and CEO, commented: "We are very excited with the Shoba well results, especially since these are the first two wells drilled using our new 3D seismic data recently acquired over the northern portion of the Zharkamys Territory. Our subsurface team has already defined several additional Triassic structures with this new seismic data set, which is expanding our drilling inventory. We also continue to process the new 3D seismic to mature potentially deeper targets previously identified with 2D seismic data."

Initial flow testing operations for both Shoba wells are expected to commence in May, once the annual 'spring thaw' and associated temporary road restrictions are lifted. An additional appraisal well is planned for the second half of 2011, to further define the potential of the Shoba structure.

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 Zharkamys Territory. 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 drilling results of the Shoba 1 and Shoba 2 wells, the timing of planned well testing and drilling operations, and the timing and ability of the Corporation to mature future drill targets and prospects. 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