Condor announces 2016 first quarter results
CALGARY, May 12, 2016 – 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, 2016, 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 2016 Highlights
- On January 7, 2016 the Company entered into an agreement with Marsa Energy Inc. (“Marsa”) to acquire all of the issued and outstanding common shares of Marsa based on an exchange ratio of 1.84326 Condor common shares for each Marsa common share (the “Marsa Transaction”). On March 24, 2016 the Marsa Transaction was completed and Condor issued 8,653,013 postconsolidation common shares to the Marsa shareholders. Following the Marsa Transaction, the outstanding Condor common shares were consolidated on a ten-to-one basis with numbers of common shares adjusted retrospectively. The Company currently has 43.3 million common shares outstanding.
- The Marsa Transaction provides Condor with a 100% interest in the four Ortakoy production licenses in Turkey that includes the Poyraz Ridge field which increases Condor’s gross Proved plus Probable reserves 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 (see Reserves Advisory).
- As per the independent evaluations of the crude oil, condensate and gas reserves of the Kazakhstan and Turkish assets as at December 31, 2015, the corresponding reserves values (NPV10 after tax) for Proved reserves is USD 44.1 million, for Proved plus Probable reserves is USD 95.2 million and for Proved plus Probable plus Possible reserves is USD 163.3 million (see Reserves Advisory).
- Detailed design for a 15 MMscf/day gas processing facility is underway for the Poyraz Ridge field and contracts are being completed for long lead equipment including refrigeration and gas
compression. Location construction for the central processing facility has commenced and development well locations are being surveyed with drilling scheduled to commence in the third
quarter of 2016. Up to four development wells are planned this year that will compliment gas production from three existing wells. The export pipeline route is also being surveyed. The project
remains on track for gas sales to commence in mid-2017.
- Working capital (defined as current assets minus current liabilities) as of March 31, 2016 was $40.9 million and the Company had no debt.
- Shoba operations remained suspended as at March 31, 2016. Production is expected to resume in 2016 once Shoba and Taskuduk production contracts are executed and export sales are permitted.
- The Company recorded net loss of $4.1 million for the three months ended March 31, 2016 (2015: $0.04 million), which includes $2.3 million of foreign exchange loss (2015: gain of $5.5 million) and deferred tax recovery of $1.8 million (2015: deferred tax expense of $1.4 million).