CALGARY, ALBERTA -- (Marketwired) -- 07/11/13 -- Condor Petroleum Inc. ("Condor" or the "Company") (TSX: CPI) is pleased to announce that it has received irrevocable bank guarantees totaling US $83.0 million for the sale of the Company's interest in the Marsel Territory in Kazakhstan ("Marsel"). The total sale price is US $88.0 million.
The irrevocable bank guarantees were received from a multinational, publically listed financial institution and confirm the buyer's intent and ability to complete this transaction. As previously announced, the transaction is expected to be completed by the fourth quarter of 2013, once the necessary waivers and consents from the Government of Kazakhstan are obtained. In the interim period prior to closing, the buyer has provided a US $5.0 million loan to fund ongoing Marsel exploration activities.
The Company intends to use the proceeds from the Marsel sale to continue it's near term focus on the exploration and development of the Company's Zharkamys Territory 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. 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 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 news 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
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