CALGARY, ALBERTA -- (Marketwired) -- 04/23/13 -- Condor Petroleum Inc. ("Condor" or the "Company") (TSX: CPI) is pleased to announce that its wholly owned subsidiary, Condor Netherlands Petroleum B.V. has entered into a binding sale and purchase agreement to sell its 66% participating interest in and certain indebtedness of Marsel Petroleum LLP ("Marsel"), which owns the hydrocarbon exploration rights for the 18,500 square km Marsel Territory located in the Republic of Kazakhstan. The sale price is US $88.0 million.
The buyer is a non-listed international oil and gas group (the "Buyer"). The transaction requires various waivers and consents from the Government of Kazakhstan and is subject to the satisfaction of certain commercial conditions and third party waivers typical for transactions of this nature. The transaction is expected to be completed by the fourth quarter of 2013. In the interim period prior to closing, the Buyer has agreed to provide Marsel with a US $5.0 million loan to fund certain costs, including costs related to ongoing exploration activities.
The Company intends to use the proceeds from the Marsel sale to concentrate its near term focus on the exploration and development of the Company's Zharkamys Territory, including the recently announced Kiyaktysai oil discovery and to pursue other oil-related growth opportunities within Kazakhstan.
About Condor Petroleum Inc.
Condor is a Canadian oil and gas company with assets in Kazakhstan and Canada. Condor holds a 100% interest in the exploration rights to the 2,610 square km Zharkamys Territory, located in Kazakhstan's Pre- Caspian basin and 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. The Company operates certain oil and natural gas properties and holds non-operated working interests in a number of other properties in Canada. The Company is listed on the TSX under the symbol "CPI".
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", "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 press release include, but are not limited to, the anticipated completion of the sale of the interests in Marsel, the expected timing for closing of the transaction and the use of the proceeds of the transaction. 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. Such factors and assumptions include, among other things, risks that the conditions to the transaction including the consents and waivers of the Government of Kazakhstan and certain third parties will not be satisfied, regulatory changes, the timing of regulatory approvals and the ability to obtain sufficient financing on reasonable terms. Condor's operations are also subject to certain other risks and uncertainties including, the effects of weather and climate conditions, fluctuation in interest rates and foreign currency exchange rates, the availability of suppliers and their ability to meet commitments, risks inherent with oil and gas operations, both domestic and international. These factors are discussed in greater detail under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form for the year-ended December 31, 2012. 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.
Condor Petroleum Inc.
President & Chief Executive Officer
Condor Petroleum Inc.
Vice President, Finance & Chief Financial Officer
Most Popular Stories
- PBS Series Examines America's Demographic Shift
- Tim Cook Has Proved That Apple is His Baby
- Royals Beat A's in 12-inning Wild Card Thriller
- Texas Sees Gains in Hispanic College Enrollment
- Americans Bet Big on Gambling Industry
- Construction Spending Down Again for August
- Petri Likely Broke House Ethics Rules
- California's Ban on Plastic Bags: What Now?
- Exxon Gives Nod to Fracking Risks
- Morgan: 'Can't Believe' Wal-Mart Blaming Him