Condor Provides Kazakhstan Operations Update
January 20 2012 - 9:20AM
Marketwired
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.
Contacts: 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
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