Condor and Marsa Announce Completion of the Marsa Acquisition
Calgary, Alberta –– Condor Petroleum Inc. (TSX: CPI) (Condor) and Marsa Energy Inc. (TSX-V: MEP) (Marsa) are pleased to announce the completion of the previously disclosed acquisition of Marsa by Condor by way of a statutory plan of arrangement (the Arrangement). Pursuant to the Arrangement, Condor acquired all of the outstanding common shares of Marsa through the issuance of 1.84326 Condor common shares in exchange for each Marsa common share. Following the Arrangement, the Condor common shares will be consolidated on a 10-to-1 basis.
The Marsa common shares are expected to be delisted from the TSX Venture Exchange (TSXV) concurrent with the listing of the consolidated Condor common shares on the Toronto Stock Exchange (TSX) pursuant to the Arrangement. The consolidated Condor common shares are expected to commence trading on the TSX within three to four business days.
The addition of Marsa’s Turkish assets is expected to deliver significant strategic, financial and operational benefits to Condor by providing near term sustainable cash flow and additional long-term growth potential. Leveraging off Condor’s strong balance sheet to bring the Marsa Poyraz Ridge discovery to market and combining two highly prolific prospect inventories should add significant shareholder value over the coming years.
The 2016 capital program is primarily focused on the development of the Poyraz Ridge field in Turkey, which includes drilling up to 4 development wells and commencing with facility and gas pipeline construction. A reserve-based credit facility is being pursued to assist with development costs and first gas is targeting mid-2017. Two exploration prospects that are located near the Poyraz Ridge field are also planned to be drilled in 2016. In Kazakhstan, the commercial production licenses are expected in the second quarter of 2016, allowing export oil sales to begin. Another Shoba horizontal well is also planned to be drilled in 2016.
With the addition of the Poyraz Ridge field, Condor’s gross Proved plus Probable reserves have increased 119% from 3,104 Mboe to 6,808 Mboe as of December 31, 2015 as per the independent evaluation of crude oil reserves prepared by McDaniel & Associates Consultants Ltd. for the Kazakhstan assets and per the independent evaluation of gas and condensate reserves prepared by DeGolyer and McNaughton for the Turkish assets. Please see the Advisory on Reserves information.
Gross Company reserves as of December 31, 2015 *
Condor estimates current working capital to be CA$41 million and the Company has no debt.
Dundee Capital Markets acted as strategic advisor to Condor in connection with the Arrangement.
Black Spruce Merchant Capital Corp acted as exclusive financial advisor to Marsa on this transaction.