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”.
SOURCE: Condor Petroleum Press Office.