CALGARY, ALBERTA--(Marketwire - June 4, 2012) - Condor Petroleum Inc. ("Condor" or the "Company") (CPI.TO - News) is pleased to provide an update on its operations at the Zharkamys West 1 Contract Territory (the "Zharkamys Territory") in Kazakhstan.
Shoba Appraisal Program: Shoba-6 (Sh-6), the third well of the Shoba appraisal program, reached a total depth of 896 meters in May 2012. The wellbore encountered 19 meters of net oil pay and 10 meters of net gas pay (39 meters of gross pay) within the Triassic, sharing a common oil/water contact with previously drilled wells. In addition, a new oil zone in the Basal Jurassic has been interpreted from petrophysical analysis with 3.5 meters of net pay. Mapping and further analysis is in progress to better define the Jurassic zone's potential across the field. Production casing has been set and the well is scheduled to be produced as part of the Trial Production Project which is expected to commence in Q3 2012.
Sh-6 results confirm the continuity of the reservoir within the Triassic to the southeast of Sh-1, in addition to defining new reserves potential across the field from the Basal Jurassic zone.
Shoba-9 (Sh-9) was also drilled in May 2012 to a total depth of 843 meters. The wellbore penetrated 3 meters of net oil pay (approximately 10 meters of gross interval) within the Triassic. Production casing has been set and the well is scheduled to be flow-tested once regulatory approvals are obtained.
Sh-9's results extend the Shoba field to the southeast of the recent Sh-8 well and north of the primary fault in the field, confirming that a common oil-water contact exists between fault compartments. In addition to defining the near zero-edge of the field, the Sh-9 results will be used to upgrade reserves contained in the northern fault block from their current 'Possible' category.
The three Shoba appraisal well costs have averaged less than $800,000. One additional Shoba appraisal well will be drilled in 2012, along with up to 10 exploration wells targeting multiple play-types and depths.
Testing Activities: The ninety day production test on the TasW-4 well began in late April 2012. A 21 meter interval was perforated with production rates averaging 350 barrels per day of 38 to 40 API gravity oil during the first month. Upon completion of the current test, an additional ninety day test is planned for TasW-4 to target a separate 11 meter interval.
A 5 meter interval on TasW-3 has been completed and the ninety day production test is expected to begin in June, adding to the test production volumes from TasW-4.
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, acquisition, processing and interpretation of 3D and 2D seismic, future production levels, future capital expenditures, 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.