Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is
pleased to announce the release of its Interim Condensed
Consolidated Financial Statements for the period ended March 31,
2012, 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.
First quarter 2012 highlights include:
At the Zharkamys territory ("Zharkamys") in Kazakhstan, the
ninety day production test on the TasW-4 well began in April. A 21
meter interval was perforated with initial oil rates exceeding 700
barrels per day. Stabilized flow rates will be reported once
hydrodynamic testing is completed. A second ninety day test is
planned for TasW-4 after the current production test and targets a
separate 11 meter interval.
During the quarter, Condor completed the first production test
on one zone of the TasW-3 well and produced an average of 88
barrels per day flowed. A ninety day production test for a second 5
meter net pay interval is expected to commence in June 2012.
In April, Shoba-8, the first of four appraisal wells, reached
its planned total depth of 883 meters. Sh-8 penetrated 15 meters of
gross oil pay and resulted in 8.7 meters of net pay above the field
oil water contact. Production casing has been set and the well is
scheduled to be flow-tested once regulatory approvals are obtained.
Drilling of Shoba-9, a second appraisal well, has recently
commenced.
Condor plans to drill up to 12 additional wells at Zharkamys
during 2012, including 10 exploration wells (5 deep and 5 shallow)
and 2 Shoba appraisal wells. The Company is in the process of
contracting a second drilling rig to begin exploration drilling in
the third quarter of 2012.
Since the Company expects to transition into sustained oil
production in Kazakhstan during 2012, a Letter of Intent ("LOI")
was recently signed to purchase a 90% interest in an existing oil
terminal located 12 kilometers northwest of Zharkamys. In
additional to providing oil storage, the 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.
The first well drilled at the Marsel territory ("Marsel") using
Company acquired 3D seismic data was Asa-1. This well reached a
total depth of 2,670 meters in April 2012. The primary Devonian
target zone was encountered at 2,408 meters, consisting of
fractured conglomerates and breccias. Wireline logging, in
combination with two successful open-hole Drill Stem Tests
("DSTs"), confirms a continuous 288 meter gas column has been
penetrated, with an estimated 110 meters of net pay. The DSTs
resulted in flow rates ranging between 2.1 and 11.1 MMscf/day. The
gas was dry with no formation water indicated during the flow
periods. A gas-water contact was not encountered. Production casing
has been set in anticipation of additional flow testing.
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 financial information:
For the three months ended March 31
(000's) 2012 2011
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Oil and natural gas sales 796 838
Net loss attributable to Condor (4,054) (2,995)
Net loss per share - basic and diluted (0.01) (0.01)
Capital expenditures 8,831 3,269
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As at (000's) March 31, 2012 December 31, 2011
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Working capital 51,480 64,132
Total assets 198,428 206,170
Total liabilities 12,444 14,387
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About Condor Petroleum Inc.
Condor is a Canadian oil and gas company with assets in
Kazakhstan and Canada. Condor holds a 100% interest in the
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. The Company operates certain oil and natural gas
properties in Alberta and Saskatchewan and holds non-operated
working interests in a number of other properties in Alberta. The
Company is listed on the TSX under the symbol "CPI".
Forward-Looking Statements
Certain statements and information contained herein constitute
forward-looking statements under applicable securities legislation.
Such statements are generally identifiable by the terminology used,
such as "seek", "anticipate'', "believe'', "intend", "expect",
"plan", "estimate", "continue", "project", "predict", "budget'',
"outlook'', "may", "will", "should", "could", "would" or other
similar wording. All statements other than statements of historical
fact may be forward-looking statements. Forward-looking statements
include, but are not limited to, statements and information with
respect to estimates of reserves and/or resources, acquisition,
processing and interpretation of 3D and 2D seismic, future
production levels, future capital expenditures, information
concerning the status of the LOI, expected completion of the
transaction provided for in the LOI and the potential expansion of
oil marketing options, 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 the use of 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 www.condorpetroleum.com
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