Condor announces 2015 first quarter results
CALGARY, May 13, 2015 – 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 months ended March 31, 2015, 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.
Q1 2015 Highlights
- Preparations continue to begin drilling the KN-501 Primary basin well. The well is targeting 67 mmboe unrisked mean prospective resources (internal Company estimate – see Reserve and Resource Advisory) and planned to reach 4,250 meters. The well offsets the Company’s play opening KN-E Primary Basin discovery by 8 kilometers and is located under the same salt dome. The KN-501 well location is under construction and drilling is expected to commence in June.
- The Zharkamys exploration period was recently extended for an additional ten months to December 14, 2016 and the exploration contract will be amended in due course.
- Working capital as of March 31, 2015 was $59 million and the Company has no debt.
- Production increased 94% to an average of 318 bopd for the three months ended March 31, 2015 from 164 bopd for the same period in 2014, despite temporarily suspending Shoba operations on March 15, 2015 for an indeterminate period due to constraints in domestic refining capacity and low prices for crude oil and refined crude oil products. The first quarter production increase relates to the positive performance of the two Shoba horizontal wells which were drilled and completed in the fourth quarter of 2014, representing the first shallow horizontal wells drilled in Kazakhstan’s Pre-Caspian basin. Flow rates on both wells have been restricted thus far to minimize the potential for water and gas coning.
- Kazakhstan is experiencing an oversupply of refined crude oil products, including diesel, which is causing downward pricing pressures on domestically produced diesel and on crude oil. During the past few months Kazakhstan refineries have been either not operating or offering prices below the Company’s cost of operations. The Government of Kazakhstan recently reduced export customs duties on crude oil and certain refined products and placed a temporarily ban on imports of gasoline and diesel fuel from Russia. Both measures are intended to help alleviate the domestic market oversupply.