Welcome!

SYS-CON UK Authors: Salvatore Genovese, Jamie Matusow

News Feed Item

Condor Announces 2012 Third Quarter Results

CALGARY, ALBERTA -- (Marketwire) -- 11/14/12 -- 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 nine months ended September 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.

Third quarter 2012 highlights include:

During the third quarter the Company continued the exploration programs at the Zharkamys West 1 territory ("Zharkamys") and the Marsel territory ("Marsel") in Kazakhstan.

At Zharkamys, the Shoba trial production period commenced in September 2012 permitting continuous production from five wells at the Shoba oil field. The trial production period is expected to continue until mid- 2014 and then transition into the development period with forecasted peak production in excess of 1,500 bopd. Production from Shoba is currently 400 bopd and is expected to increase as additional wells are brought on-line and treating facilities are optimized. During the trial production period, the Company is required to sell all production domestically to refineries within Kazakhstan.

Shoba-7a ("Sh-7a"), the replacement for the Shoba-7 appraisal well, was started in October 2012 and drilled to a total measured depth of 890 meters. The wellbore encountered 26 meters of net oil pay, averaging 24% porosity and 26 meters of net gas pay (52 meters of gross pay) within the Triassic, sharing a common oil/water contact with previously drilled wells. Production casing was run and the well is expected to be completed in the fourth quarter of 2012. The drilling rig is currently moving to KN-NE-1, the second Phase 2 well which is expected to be spud in November 2012.

In November, the Company signed a Memorandum of Understanding with an international oil and gas group related to the sale of the Company's 66% participation interest in the Marsel territory in Kazakhstan. Due diligence is in process and expected to be completed in early 2013. The sale of the participation interests would be subject to consent and certain approvals from the government of Kazakhstan.

The next exploration well planned at Marsel is on the Bugudzilskaya structure, which is a faulted three way structural closure containing multiple targets within the Lower Carboniferous and Devonian clastics. The primary reservoir target is Upper Devonian sandstones and interpreted to contain high quality reservoir potential based on analog wells and seismic data interpretation. Drilling is planned to commence in November 2012 and is expected to take sixty days.


Selected financial information:                                             
                                                                            
For the three months ended September 30                                     
 (000's)                                                2012           2011 
----------------------------------------------------------------------------
Oil and natural gas sales                                611          1,038 
Net loss attributable to Condor                       (3,542)        (2,372)
Net loss per share - basic and diluted                 (0.01)         (0.01)
Capital expenditures                                 (10,775)       (12,388)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
For the nine months ended September 30 (000's)                              
----------------------------------------------------------------------------
Oil and natural gas sales                              2,233          2,742 
Net loss attributable to Condor                       (8,474)        (7,146)
Net loss per share - basic and diluted                 (0.02)         (0.02)
Capital expenditures                                 (27,733)       (27,909)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                               September 30,   December 31, 
As at (000's)                                           2012           2011 
----------------------------------------------------------------------------
Working capital                                       29,419         64,132 
Total assets                                         187,634        206,170 
Total liabilities                                      9,830         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 km(2) 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 km(2) (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 expectations, timing and ability of the Company to complete the sale of the participation interests in the Marsel territory including obtaining the consent and approvals thereon from the government of Kazakhstan; the expected timing and duration of the Shoba trial production period and subsequent development period, information concerning the timing and ability to obtain various regulatory approvals; the timing and duration of planned well testing, production, drilling and completion operations; and expectations of future production levels. 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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.