CALGARY, Alberta, Aug. 12, 2020 (GLOBE NEWSWIRE) — Condor Petroleum Inc. (“Condor” or the “Company”) (TSX: CPI), a Canadian based oil and gas company focused on exploration and production activities in Turkey and Kazakhstan, is pleased to announce the release of its unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2020 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. Readers are invited to review the latest corporate presentation available on the Condor website. All financial amounts in this news release are presented in Canadian dollars, unless otherwise stated.
Q2 2020 HighlightsOn April 22, 2020, the Government of Kazakhstan signed the Shoba and Taskuduk production contract addendums and no further approvals are required in order to complete the sale of the two properties. The transaction is scheduled for closing as soon as practical once the current novel coronavirus (“COVID-19”) pandemic related restrictions on travel and office closures in Kazakhstan have been eased and the re-registration of the properties and equipment to the Buyer can be completed.  Discussions continue with the Government of Uzbekistan for the Company to secure an agreement to operate five producing gas fields and associated gathering pipelines and gas treatment infrastructure. However, progress has been hampered by COVID-19 travel restrictions.Two well workovers were performed in Turkey during the second quarter of 2020, increasing production to an average of 326 boepd for the past thirty days compared to an average of 107 boepd for the three months ended June 30, 2020.The Company is in discussions for farm-in partners to drill the Yakamoz prospect in Turkey and multiple prospects in the Zharkamys West 1 territory in Kazakhstan.The Company has taken a number of measures to protect the safety and health of its personnel, contractors and suppliers during the COVID-19 pandemic and is well positioned for the challenges of the current business environment, has a cash position of $16.1 million as of June 30, 2020, no debt, and positive netbacks from natural gas sales and no capital commitments in Turkey.Continuing operations in Turkey to date have not been materially affected by the COVID-19 pandemic although production decreased to an average of 107 boepd for the second quarter of 2020 from 293 boepd in 2019 due mainly to a combination of natural declines and forty two days of restricted production related to a refrigeration unit compressor failure at the processing facility. Corresponding sales decreased to $0.5 million for second quarter of 2020 from $1.3 million in 2019 and the net loss increased to $2.7 million for second quarter of 2020 from $1.4 million in 2019.Shoba and Taskuduk SaleIn September 2019, the Company entered into a binding agreement to sell its 100% interests in the Shoba production contract, Taskuduk production contract and associated field equipment for total proceeds of USD 24.6 million (“Sale Agreement”). The buyer (“Buyer”) paid USD 3.8 million in October 2019, USD 18.7 million in January 2020 and USD 0.6 million in May 2020. The remaining USD 1.5 million is due at Closing and will be reduced by an estimated USD 0.7 million for the net revenues minus operating costs from the properties which attribute to the Buyer from the effective date of December 25, 2019 until the Closing date.On April 22, 2020, the Government of Kazakhstan signed the Shoba and Taskuduk production contract addendums and no further approvals are required in order to complete the sale of the two properties. At the request and expense of the Buyer, production was immediately shut in and there will be no further production or sales until Closing has occurred. The transaction is scheduled for closing as soon as practical once the current COVID-19 related restrictions on travel and office closures in Kazakhstan have been eased and the re-registration of the properties and equipment to the Buyer can be completed and the parties are able to conduct the customary Closing and commercial handover procedures.Production Contract Negotiations with the Government of UzbekistanDiscussions continue with the Government of Uzbekistan for the Company to secure an agreement to operate five producing gas fields and associated gathering pipelines and gas treatment infrastructure. The Company has submitted and presented a detailed feasibility study and economic analysis for the five producing gas fields to the Government of Uzbekistan and an independent reserves volume evaluation has been completed. An environmental baseline study is currently being performed by an independent contractor. In parallel, the Company is also pursuing the possibility of acquiring exploration acreage in areas surrounding the respective gas fields. Material progress on these initiatives has been hampered by the recent COVID-19 travel and office closure restrictions.If executed, the production contract is expected to include five producing gas fields of interest, associated gathering pipelines, and gas treatment infrastructure. The fiscal and operating terms expected to be defined in the production contract include royalty rates, cost recovery, allocation of profits, gas marketing and pricing, government participation, governance and steering committee structures, baseline production levels and reimbursement methodology.Continuing and discontinued operations classificationFollowing the execution of the agreement for the Sale Transaction, as of September 30, 2019 the related Shoba and Taskuduk net assets and liabilities have been reclassified to assets and liabilities held for sale and the respective results of operations are presented as discontinued operations for all current and prior periods throughout this news release. For further information relating to discontinued operations, please refer to the Company’s Financial Statements.Continuing operationsThe Company produces natural gas and associated condensate in Turkey. To date, operations have not been materially affected by the COVID-19 pandemic although production decreased to an average of 107 boepd and an operating netback¹ of $(7.31) per boe for the second quarter of 2020 (Q2 2019: produced an average of 293 boepd and an operating netback¹ of $29.62 per boe) and cash used in continuing operations increased to $2.7 million for the second quarter of 2020 versus $0.9 million for the same period in 2019. The production decrease is due to a combination of natural declines and 42 days of restricted production caused by a compressor failure at the processing facility. The processing facility was returned to full service in June 2020.Two well workovers were completed during the second quarter of 2020 that perforated new producing intervals in each well. This increased average production to 326 boepd for the past 30 days compared to an average of 107 boepd for the three months ended June 30, 2020. Additional workover opportunities and new infill drilling locations are being generated.The Yakamoz 1 side-track well has been matured to a drill-ready state and is targeting up-dip targets in both the proven Miocene and Upper Eocene reservoirs, in addition to the deeper Middle to lower Eocene reservoirs, which have not yet been tested. The Company previously drilled Yakamoz 1 and encountered numerous gas shows while drilling. A successful Yakamoz 1 side-track well would be tied 2 km into the existing Poyraz Ridge gas plant for processing and onward sales. The Company is discussing a farm-in with an interested party.Selected Financial Results of Continuing OperationsSales and operating netback¹For the three months ended June 30
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