Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is
pleased to announce the release of its Consolidated Financial
Statements for the years ended December 31, 2011 and 2010, together
with the related Management's Discussion and Analysis ("MD&A").
These documents will be made available under Condor's profile on
SEDAR at www.sedar.com and on the Condor website at
www.condorpetroleum.com. All financial amounts in this press
release are presented in Canadian dollars. The Consolidated
Financial Statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS"). Further
details on Condor's conversion to IFRS are provided in the
Financial Statements and MD&A.
2011 highlights include:
A number of important milestones were reached during the year
ended December 31, 2011. Following a fully subscribed private
placement in December 2010, which raised gross proceeds of $45.0
million, the Company completed a fully subscribed Initial Public
Offering ("IPO") in April 2011 and raised gross proceeds of $80.0
million. In connection with the IPO, the common shares of Condor
commenced trading on the Toronto Stock Exchange ("TSX"). In May,
2011, the Company raised additional gross proceeds of $7.6 million
pursuant to the exercise of an over-allotment option related to the
IPO. The net proceeds from these financings, less agent fees and
transaction costs, amounted to $123.8 million and will fund the
Company's operations and planned capital programs through 2012.
The exploration drilling program which kicked off in March 2011
at the Zharkamys West 1 ("Zharkamys"), in which Condor has a 100%
interest, resulted in a discovery at the Shoba oilfield which
provided the Company its first booking of probable oil reserves in
Kazakhstan. The Shoba discovery also led to the Company's first
test oil production in Kazakhstan which is expected to transition
into sustained production during 2012. Subsequent oil discoveries
were also made at Ebeity and Taskuduk West.
The Company continued with its full block exploration strategy
at Zharkamys highlighted by an additional 1,282 km2 3D seismic
acquisition program during the year and both pre-stack time
migration and pre-stack depth migration processing of the 1,250 km2
3D seismic acquired during 2010. High fold, high resolution 3D
seismic now covers 87% of the territory and will allow the Company
to focus the future Zharkamys capital program on high impact, low
cost drilling exploration and appraisal opportunities.
Condor plans to drill up to 14 additional wells at Zharkamys
during 2012, including 10 exploration wells (5 deep and 5 shallow)
and 4 Shoba appraisal wells. A drilling rig is currently mobilizing
to initiate the Shoba appraisal program and then continue with the
exploration program. A second drilling rig is also envisioned to
commence exploration drilling in the second half of 2012.
In the first quarter of 2012, the Company signed a Letter of
Intent to purchase a 90% interest in an existing oil terminal
located 12 kilometers northwest of Zharkamys. In additional to
providing oil storage, this facility has a rail spur that ties into
the main rail line between Aktobe and Atyrau, and should expand the
Company's future oil marketing options.
Exploration activities continued at the Marsel territory in
which the Company owns a 66% interest, highlighted by the
acquisition of 900 km of 2D seismic and the Asa-1 exploration well
which was spud in late November 2011, results of which are expected
in April 2012.
Condor's non-core Canadian properties continue to provide
positive cash-flow despite minimal capital expenditures and
production has remained relatively steady with gradual natural
declines.
Selected information
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For the year ended December 31 (000's) 2011 2010 2009(1)
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Gross petroleum and natural gas sales 3,998 3,327 3,025
Net loss attributable to Condor Petroleum Inc. (12,439) (11,742) (8,299)
Net loss per share - basic and diluted (0.04) (0.06) (0.05)
Capital expenditures 48,201 35,339 15,474
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As at December 31 (000's)
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Total assets 206,170 129,775 57,586
Total long term financial liabilities 3,109 3,093 20,452
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(1) Prepared in accordance with Canadian GAAP
About Condor Petroleum Inc.
Condor is an oil and gas corporation engaged in the exploration
for, and the acquisition, development and production of oil and
natural gas in Kazakhstan and Canada. Condor holds a 100% interest
in the oil and natural gas exploration rights to the 2,610 km2
Zharkamys West 1 territory located in Kazakhstan's Pre-Caspian
basin, a 66% interest in the oil and natural gas exploration rights
to the 18,500 km2 (gross) Marsel territory located in Kazakhstan's
Chu-Sarysu basin and operates certain properties in Alberta and
Saskatchewan and holds non-operated working interests and royalty
interests in a number of other properties in Alberta.
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 timing and ability to obtain various
regulatory approvals; the timing of planned well testing,
production and drilling operations; the expectations, timing and
ability of the Company to mature and drill future targets and
prospects; reserve estimates, the timing and ability of the Company
related to the acquisition of seismic data and its proposed use
thereof, expected costs of the Company's capital program,
information concerning the status of the letter of intent, expected
completion of the transaction provided for in the letter of intent
and the potential expansion of oil marketing options, 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: satisfaction of
the conditions to, and completion of, the purchase of the oil
storage and rail terminal; 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 www.condorpetroleum.com
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