CPI Condor Petroleum Inc

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.

Condor Petroleum (TSX:CPI)
Historical Stock Chart
From Jun 2024 to Jul 2024

Condor Petroleum (TSX:CPI)
Historical Stock Chart
From Jul 2023 to Jul 2024