CALGARY, ALBERTA--(Marketwire - Sept. 27, 2012) - Condor Petroleum Inc. ("Condor" or the "Company") (CPI.TO) is pleased to announce that Trial Production has commenced at the Shoba field at the Zharkamys West 1 Contract Territory ("Zharkamys") in Kazakhstan.
The significance of this milestone is that Condor has achieved sustained oil production from its Kazakhstan operations as planned. The Shoba wells are currently being commissioned and production rates will be reported once oil flow has stabilized.
Condor has approval during the Trial Production Phase to produce from up to five Shoba wells. Two additional wells could be added once oil reserves are recognized by Kazakhstan regulatory bodies relating to recent Company drilling success from the Shoba-8 and Shoba-9 appraisal wells. Shoba will continue in the Trial Production phase until mid-2014, when the field is expected to transition into commercial production. Shoba production rates are forecast to peak at up to 1,500 barrels of oil per day during commercial production.
The Zharkamys prospect inventory continues to expand with interpretation of the pre-salt potential utilizing 3D Pre-Stack Depth Migration seismic data. From an area equal to approximately one half of the Zharkamys territory, Condor has mapped gross mean un-risked prospective resources of 582 MM boe for the pre-salt formations, which has been reviewed by Sproule International as an independent evaluator. Pre-salt prospect mapping of the remaining Zharkamys territory is ongoing and expected to be completed by year end.
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 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 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.
- Investment & Company Information
Condor Petroleum Inc.
President & Chief Executive Officer
Condor Petroleum Inc.
Vice President, Finance & Chief Financial Officer