Condor announces 2014 third quarter results
CALGARY, November 12, 2014 – Condor Petroleum Inc. (“Condor” or the “Company”) (TSX: CPI) is pleased to announce the release of its Unaudited Interim Consolidated Financial Statements for the three and nine months ended September 30, 2014, together with the related Management’s Discussion and Analysis. 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 news release are presented in Canadian dollars, unless otherwise stated.
Q3 2014 highlights include:
- During 2014 the Company completed the sale of its 66% participating interest in the Marsel property for US $88.0 million.
- Working capital at September 30, 2014 was $69.6 million and the Company has no debt.
- Production decreased to an average of 158 bopd in the nine months ended September 30, 2014 compared to 318 bopd for the same period in 2013 due to Kazakhstan regulations limiting initial production during the exploration period.
- Shoba 10 (“Sh-10h”), the first horizontal well at Shoba, was successfully drilled in September 2014 to 1,206 meters inclusive of a 290 meter horizontal section. 98% of the logged horizontal section is oil pay, with porosities averaging 24% and oil saturations averaging 75%. Sh-10h initial test rates include 450 bopd on an 8 millimeter choke. The well is currently flowing 170 bopd on a 6 millimeter choke and being evaluated to assess the optimal flow rate for the zone.
- Shoba 11 (“Sh-11h”), the second horizontal well at Shoba, was successfully drilled in November 2014 to 1,327 meters inclusive of a 398 meter horizontal section. 97% of the logged horizontal section is oil pay with porosities averaging 22% and oil saturations averaging 76%. Sh-11h is being completed and production is expected to begin in December 2014.
- The Shoba field is currently producing 375 bopd under trial production and expected to increase in the fourth quarter of 2014 as the second horizontal well at Shoba is completed and brought online.
- Drilling of the Kiyaktysai North East 205 (“KN-E-205”) well is underway to further appraise the KN-E light oil discovery made in 2013 and is expected to reach total depth in December 2014.
- Taskuduk production facilities are being commissioned and production will re-commence upon the execution of the development contract, which is expected in early 2015.
- Net income for the nine months ended September 30, 2014 was $25.2 million or $0.07 per share including a $34.5 million gain on the sale of the Marsel property.
- In November 2014, the Government of Kazakhstan approved a force majeure extension to the Zharkamys exploration period due to extreme weather conditions which impacted exploration activities. The exploration period has been extended for five months until February 6, 2016. The required addendum to the Zharkamys exploration contract is anticipated to be completed in the fourth quarter of 2014 with no expected changes to the minimum work program.