CALGARY, ALBERTA--(Marketwire - Oct. 18, 2012) - Condor Petroleum Inc. ("Condor" or the "Company") (CPI.TO) provides an update on drilling operations at the Zharkamys West 1 Contract Territory ("Zharkamys") and the Marsel Contract Territory ("Marsel") in Kazakhstan.
The Shoba-201 ("Sh-201") exploration well was directionally drilled to a total measured depth of 2,050 meters. Sh-201 was the first 'salt flank' well at Zharkamys, which targeted sands and associated shale top- seals that pinch out in a 3 way structural closure against the Shoba salt dome.
Sh-201 encountered 255 meters of net reservoir with a single 4 meter interval of oil indicated from wireline logs. The limited amount of net pay is attributed to a subtle transition within the top-seal units where normally tight shale has become silt-prone and lacks sufficient oil sealing capacity. Calibrating Sh- 201 wireline logs to the 3D seismic data has identified seismic attributes that now define the variability of the top-seal units and will be applied to future salt flank prospects.
Due to the non-commercial oil quantity associated with Sh-201, the well was abandoned. The total well cost was $1.6 MM.
The access road and location for the Bugudzilskaya prospect ("Bug-1") have been completed and the drilling rig is being mobilized. The Bug-1 prospect is a 2,000 meter deep well targeting Upper Devonian sandstones and interpreted to contain high quality reservoir potential based on analog wells and seismic data interpretation. Drilling is planned to begin in November 2012.
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 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".
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, processing and interpretation of 3D and 2D seismic, future production levels, Condor's targets, goals, objectives and plans, including 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 under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form for the year-ended December 31, 2011.
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.
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Condor Petroleum Inc.
President & Chief Executive Officer
Condor Petroleum Inc.
Vice President, Finance & Chief Financial Officer