Condor Announces 2012 Third Quarter Results
November 14 2012 - 5:38PM
Marketwired
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
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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)
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For the nine months ended September 30 (000's)
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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)
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September 30, December 31,
As at (000's) 2012 2011
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Working capital 29,419 64,132
Total assets 187,634 206,170
Total liabilities 9,830 14,387
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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
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