Condor Announces 2016 Second Quarter Results
CALGARY, August 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 and six months ended June 30, 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.
Q2 2016 Highlights
- Construction and procurement activities have commenced on the 15 MMscf/day gas processing
facility for the Poyraz Ridge field.
- The drilling pad for the initial two Poyraz Ridge development wells has been constructed and drilling activities are expected to commence in September 2016.
- Capital expenditures for the three and six months ended June 30, 2016 amounted to $2.1 million and $2.7 million respectively (2015: $1.9 million and $4.2 million) relate mainly to Poyraz Ridge field development in Turkey).
- Working capital (defined as current assets minus current liabilities) as of June 30, 2016 was $36.5 million and the Company had no debt.
- A credit facility is being pursued to assist with funding the Poyraz Ridge development costs.
- Shoba operations remained suspended as at June 30, 2016. Production is expected to resume in the third quarter of 2016 once Shoba and Taskuduk production contracts are executed.
- The Company recorded net loss of $3.0 million for the three months ended June 30, 2016 (2015: $2.5 million) and $7.1 million for the six months ended June 30, 2016 (2015: $2.5 million).
Development of the Poyraz Ridge gas field located in northwest Turkey is underway. The central processing facility location has been constructed and foundation work is ongoing. Two gas compressors are scheduled for delivery in September 2016 and other long lead plant equipment is expected in the fourth quarter of 2016. Surveying of the 15.3 km, 6” inch gas sales line has been completed and detailed design is ongoing. The project continues to target first gas in mid-2017, providing access to cash flow from a region with strong domestic gas demand and pricing.
The drilling rig for the Poyraz Ridge development is mobilizing and expected to spud in September 2016. The drilling program is designed to extend the gas reserve areas, fully penetrate and evaluate the fractured carbonate productive intervals and determine whether a gas-water contact is present in the trap closure area. Along with providing additional production capacity, the development wells are intended to increase the Company’s reserves.
Condor is a Canadian based oil and gas company with a 100% interest in the exploration rights to the 3,777 square kilometer Zharkamys West 1 Territory located in the Pre-Caspian basin in the Republic of Kazakhstan and a 100% working interest in four contiguous production licenses covering 171 square kilometers located in the Gallipoli Peninsula in the Republic of Turkey. Condor is listed on the TSX under the symbol “CPI”.
Advisory on Forward-Looking Statements
All statements other than statements of historical fact may be forward-looking statements. Such statements are generally identifiable by the terminology used, such as “seek”, “appear”, “anticipate”, “believe”, “intend”, “expect”, “plan”, “estimate”, “continue”, “project”, “predict”, “budget”, “outlook”, “may”, “will”, “should”, “could”, “would” or other similar wording. Forward-looking statements in this news release include, but are not limited to, information concerning: the timing and ability to mature drill-ready targets; the timing and ability to obtain various approvals for the Company’s exploration and development activities; the expectations, timing and costs of exploration, appraisal and development activities including the cost of drilling future wells; the timing and ability to develop the gas reserves, construct the required infrastructure and deliver first gas; the timing and ability to obtain future funding on favourable terms; the timing and ability to access oil and gas pipelines and oil and gas domestic and export sales markets; the timing and ability to bring discoveries into commercial production including the timing and ability to obtain production contracts; the timing and duration of production interruptions; the timing and ability to re-commence production.
Forward-looking statements involve the use of certain assumptions that may not materialize or that may not be accurate and are subject to known and unknown risks and uncertainties and other factors, which may cause actual results or events to differ materially from those expressed or implied by such information. Condor’s operations are also subject to certain other risks and uncertainties inherent with oil and gas operations and additional information on these and other factors that could affect Condor’s operations and financial results. These factors are discussed in greater detail under Risk Factors – Risks Relating to the Company in Condor’s Annual Information Form, which may be accessed through the SEDAR website (www.sedar.com). The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not undertake any obligation to update or to revise any of the forward looking information, except as required by applicable law.
The following is a summary of abbreviations used in this news release:
- MMscf – Million standard cubic feet
- km – Kilometer
- “ – Inch
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
For further information, please contact Don Streu, President and CEO or Sandy Quilty, Vice President of Finance and CFO at 403-201-9694.