Condor Announces 2012 Second Quarter Results
August 13 2012 - 9:07PM
Marketwired Canada
Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is pleased to
announce the release of its Interim Condensed Consolidated Financial Statements
for the three and six months ended June 30, 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.
Second quarter 2012 highlights include:
During the second quarter the Company continued the exploration programs at the
Zharkamys West 1 territory ("Zharkamys") and the Marsel territory ("Marsel") in
Kazakhstan.
At Zharkamys, ninety day production tests on wells TasW-4 and TasW-3 began in
April and June, respectively, and these wells produced an average of 166 bopd
during the quarter (334 barrels of oil per day flowed). Testing of TasW-3 will
be completed in August 2012 and an additional ninety day test for TasW-4 is
expected to commence in August 2012, targeting a separate 11 meter interval.
The Company drilled three successful Shoba appraisal wells during the quarter.
Shoba-8 and Shoba-9 s successful results extend the Shoba field north of the
mapped fault and confirm that a common oil-water contact exists between fault
compartments. These results are expected to be used to upgrade reserves
contained in the northern fault block from their current 'Possible category.
Shoba-6 results confirm the continuity of the reservoir within the Triassic to
the southeast of Shoba-1, in addition to defining new reserves potential across
the field from the Basal Jurassic zone.
Approval of the Shoba Trial Production Project ("TPP") has been granted by the
Kazakhstan regulatory authorities and the remaining permits are expected in the
third quarter of 2012, coinciding with the originally planned production
start-up and completion of the facilities. The trial production and facilities
will allow the Company to continue to ramp up its sustained production volumes.
The Ebeity East 201 ("Eb-E-201") exploration well was directionally drilled to a
total depth of 2,157 meters in June 2012 for a total cost of $1.5 million.
EB-E-201 targeted a 3 way fault closed structure in the shallow Cretaceous zone
and a secondary target zone in the deeper upper Permian. The shallow target was
wet and interpreted as lacking a suitable migration pathway. After crossing a
faulted section, a 20 meter hydrocarbon interval was encountered at the top of
the deeper Permian zone, as defined by mud gas logs (c1 - c4 gas shows) and
drill cuttings. While continuing to drill to total depth, the wellbore
conditions began to destabilize due to the shallower fault zone. Despite several
days of reaming, hole-conditioning and multiple wireline configurations,
wireline logs could not be obtained over the Permian zone. The wellbore
conditions continued to deteriorate while attempting to condition the hole and
run production casing. Ultimately, the inability to stabilize the wellbore
resulted in production casing not being run and the wellbore has been plugged
and abandoned.
Drilling of Shoba-7, the fourth Shoba appraisal well this year, commenced in
August 2012. The well was drilled to core point at 730 meters. While tripping
out of the hole for core barrels, a gas influx occurred and the well was shut
in. There have been no injuries to personnel or damage to equipment. Well
control operations are ongoing. Shoba-7 is unlikely to be ready to produce when
the planned Shoba TPP commences in the third quarter of 2012.
In the first quarter of 2012, the Company signed a Letter of Intent ("LOI") to
purchase a 90% interest in the Sagiz oil storage terminal, located 12 kilometers
northwest of Zharkamys. Project and construction approvals for the refurbishment
of the Sagiz Oil terminal have been obtained from the Kazakhstan regulatory
authorities and operations have commenced. This project is on track to receive
its operating permit and be commissioned in the fourth quarter of 2012.
At Marsel, the Asa-1 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.
The Company disposed of the non-core Steelman (Saskatchewan, Canada) properties
during the quarter for proceeds of $3.1 million and realized a $2.4 million gain
on the disposal.
Selected financial information:
For the three months ended June 30 (000's) 2012 2011
----------------------------------------------------------------------------
Oil and natural gas sales 825 866
Net loss attributable to Condor (879) (1,780)
Net loss per share - basic and diluted (0.00) (0.01)
Capital expenditures 8,127 10,160
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the six months ended June 30 (000's) 2012 2011
----------------------------------------------------------------------------
Oil and natural gas sales 1,622 1,704
Net loss attributable to Condor (4,933) (4,775)
Net loss per share - basic and diluted (0.01) (0.02)
Capital expenditures 16,957 13,429
----------------------------------------------------------------------------
----------------------------------------------------------------------------
As at (000's) June 30, 2012 December 31, 2011
----------------------------------------------------------------------------
Working capital 44,271 64,132
Total assets 197,169 206,170
Total liabilities 8,740 14,387
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 and holds non-operated working interests in a
number of other properties in Alberta, Canada.
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, drilling and completion operations; the expectations,
timing and ability of the Company to mature and drill future targets and
prospects; reserve estimates, information concerning the status and timing of
the TPP, expected completion of the transaction provided for in the LOI 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.
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
