CALGARY, ALBERTA--(Marketwire - March 1, 2012) - Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is pleased to announce the signing of a Letter of Intent ("LOI") to purchase a 90% interest in an existing oil storage and rail terminal in Kazakhstan. The oil terminal is located 12 kilometers northwest of Condor's Zharkamys West 1 Contract Territory (the "Zharkamys Territory").
The terminal includes 1,200 m3 (7,500 barrels) of oil storage capacity and is designed to load 4 rail cars simultaneously. The terminal has a rail spur which ties directly into the main rail line between Aktobe and Atyrau. In addition to providing expected transportation cost savings, the terminal's existing access to the rail system should expand Condor's future oil marketing options.
The LOI is subject to certain conditions including facility upgrades and re-licensing of the terminal, and the execution of a definitive purchase and sale agreement.
About Condor Petroleum Inc.
Condor is an oil and gas corporation engaged in the exploration for, and the acquisition, development and production of oil and natural gas in Kazakhstan and Canada. Condor holds a 100% interest in the oil and natural gas exploration rights to the 2,610 square km Zharkamys Territory, located in Kazakhstan's Pre-Caspian basin. Condor also holds a 66% interest in Marsel Petroleum LLP which has the exploration rights to the 18,500 square km Marsel Territory, located in Kazakhstan's Chu-Sarysu basin. For further information see Condor's (final) prospectus, dated March 31, 2011, a copy of which is available under Condor's SEDAR profile at www.sedar.com.
Certain statements in this news release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate'', "believe'', "intend", "expect", "plan", "estimate", "budget'', "outlook'', "may", "will", "should", "could", "would" or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning the status of the LOI, expected completion of the transaction, the expected transportation cost savings, and the potential expansion of oil marketing options, together with the timing associated therewith. By its very nature, such forward-looking information requires Condor to make assumptions that may not materialize or that may not be accurate. Forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors and assumptions include, but are not limited to: satisfaction of the conditions to, and completion of, the purchase of the oil storage and rail terminal; the results of exploration and development drilling and related activities; imprecision of reserves and resources estimates; ultimate recovery of reserves; prices of oil and natural gas; general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and natural gas prices; the ability to produce and transport crude oil and natural gas to markets; the effects of weather and climate conditions; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Condor. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Condor with Canadian securities regulatory authorities.
Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this news release is made as of the date of this news release and, except as required by applicable law, Condor does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Don Streu Condor Petroleum Inc. President & Chief Executive Officer (403) 201-9694
Sandy Quilty Condor Petroleum Inc. Vice President, Finance & Chief Financial Officer (403) 201-9694