News listings

energy-pedia general news

Kazakhstan flagKazakhstan

Europe / Caspian / CIS >>> Kazakhstan

Condor Petroleum provides update on Kazakhstan and Turkey operations


14 Sep 2018

Photo - see caption

Condor Petroleum, a Canadian based oil and gas company focused on exploration, development and production activities in Turkey and Kazakhstan, has provided an operations update.

Kazakhstan Operations

Drilling is underway on a two well infill program. The first horizontal well has been completed and is being tied into the production facility. A 500 meter lateral section was drilled and oil production is expected to commence later this month. Intermediate casing has been set on the second horizontal well and drilling the lateral section will begin next week. The second well is targeting completion in September 2018 and to begin production in October 2018. A two well workover program is also underway and targets completion in September 2018. This drilling and workover program is intended to increase oil production to over 800 bopd. Oil production has averaged 365 bopd over the past thirty days.

As previously disclosed, the Company has submitted a 630 day extension application to the Ministry of Energy of the Government of Kazakhstan for the Company’s Zharkamys exploration contract. This application is currently being reviewed by the Ministry.

Turkey Operations

Effective September 1, 2018, the natural gas reference price in Turkey was increased a further 14% by BOTAS, the national oil and gas pipeline transportation company. This marks the fourth increase in reference gas prices during 2018 and totals 62% for the year and has effectively offset the depreciation of the Turkish Lira over the same period. At prevailing exchange rates, the gas price of CA$6.65 per Mscf as of September 1, 2018 is essentially unchanged from CA$6.60 per Mscf as of January 1, 2018.   

Gas production has averaged 585 boepd over the past thirty days which is below the rates initially forecast due to greater variability in reservoir quality and continuity than originally modelled. A workover program for existing wells is being developed and focusing on completing additional pay sections and stimulation options to realize commercial flow rates for the lower permeability reservoirs.

Loan Restructuring

On September 13, 2018, certain terms of the Company’s existing secured non-revolving credit facility were amended with the single arm’s length lender (the “Lender”) including the extension of the term by nine months and spreading the remaining six quarterly principal payments of US$1.25 million each over nine quarterly principal payments consisting of three payments of US$0.1 million, followed by three payments of US$0.9 million and then followed by three payments of US$1.5 million. The next scheduled principal payment of US$0.1 million plus interest is due on September 30, 2018 and the final scheduled principal payment plus interest is due September 30, 2020.

The Lender now holds warrants entitling them to purchase one million common shares of the Company at an exercise price of CA$0.35 per share and expire on December 31, 2021 which represents all warrants held by the Lender. Further, the Company paid US$75,000 and issued 900,000 common shares to the Lender in a private placement at CA$0.40 per share as a restructuring fee.

Don Streu, President and CEO commented:

'The loan restructuring allows us to continue growing near term production and cash flow by drilling two infill wells and performing two well workovers in Kazakhstan. This production growth will be very impactful as Kazakhstan’s commodity prices have strengthened during the year, yielding an estimated operating netback of CA$26.29 per barrel in August 2018.'

Operating netback is a non-GAAP measure and is a term with no standardized meaning as prescribed by GAAP and may not be comparable with similar measures presented by other issuers. See non-GAAP financial measures. The calculation of operating netback is aligned with the definition found in the Canadian Oil and Gas Evaluation Handbook.

Original article link

Source: Condor Petroleum





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Publicly Available Deals

See all deals...

Subscriber Only Deals

Current deals: 1657
Completed deals: 4985

Company Profiles

Current Company Profiles: 2595

Corporate Activity

Current Corporate Activity articles: 3109

Companies Looking

Current number of articles: 422

Company Sales

Current Company Sales articles:1262

Geostudies

Current Geostudies articles: 592

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Government of South Australia
energy365
count geophysics
Bayphase
Union Jack Oil 149
KL Publishing
Lynx Information Systems
RSK Logo 149
Rose & Assocs 149
OPC
SLR Consulting logo
EP Consult Energies
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com