Condor to Sell Marsel Interest for US $88.0 Million
April 23 2013 - 8:21AM
Marketwired
Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is
pleased to announce that its wholly owned subsidiary, Condor
Netherlands Petroleum B.V. has entered into a binding sale and
purchase agreement to sell its 66% participating interest in and
certain indebtedness of Marsel Petroleum LLP ("Marsel"), which owns
the hydrocarbon exploration rights for the 18,500 square km Marsel
Territory located in the Republic of Kazakhstan. The sale price is
US $88.0 million.
The buyer is a non-listed international oil and gas group (the
"Buyer"). The transaction requires various waivers and consents
from the Government of Kazakhstan and is subject to the
satisfaction of certain commercial conditions and third party
waivers typical for transactions of this nature. The transaction is
expected to be completed by the fourth quarter of 2013. In the
interim period prior to closing, the Buyer has agreed to provide
Marsel with a US $5.0 million loan to fund certain costs, including
costs related to ongoing exploration activities.
The Company intends to use the proceeds from the Marsel sale to
concentrate its near term focus on the exploration and development
of the Company's Zharkamys Territory, including the recently
announced Kiyaktysai oil discovery and to pursue other oil-related
growth opportunities within Kazakhstan.
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 and 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
and holds non-operated working interests in a number of other
properties in Canada. The Company is listed on the TSX under the
symbol "CPI".
Forward-Looking Statements
All statements other than statements of historical fact may be
forward-looking statements. 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.
Forward-looking statements in this press release include, but are
not limited to, the anticipated completion of the sale of the
interests in Marsel, the expected timing for closing of the
transaction and the use of the proceeds of the transaction.
Forward-looking statements involve the use of certain assumptions
that may not materialize or that may not be accurate and are
subject to known and unknown risks and uncertainties and other
factors, which may cause actual results or events to differ
materially from those expressed or implied by such information.
Such factors and assumptions include, among other things, risks
that the conditions to the transaction including the consents and
waivers of the Government of Kazakhstan and certain third parties
will not be satisfied, regulatory changes, the timing of regulatory
approvals and the ability to obtain sufficient financing on
reasonable terms. Condor's operations are also subject to certain
other risks and uncertainties including, the effects of weather and
climate conditions, fluctuation in interest rates and foreign
currency exchange rates, the availability of suppliers and their
ability to meet commitments, risks inherent with oil and gas
operations, both domestic and international. These factors are
discussed in greater detail under Risk Factors - Risks Relating to
the Company in Condor's Annual Information Form for the year-ended
December 31, 2012. The Company believes that the expectations
reflected in these forward-looking statements are reasonable, but
no assurance can be given that these expectations will prove to be
correct and such forward-looking statements should not be unduly
relied upon. The Company does not undertake any obligation to
update or to revise any of the forward-looking information, except
as required by applicable law.
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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