Condor Declares 2022 Third Quarter Outcomes

CALGARY, Alberta, Nov. 14, 2022 (GLOBE NEWSWIRE) — Condor Energies Inc. (“Condor” or the “Firm”) (TSX: CDR), a Canadian primarily based power transition firm with actions in Turkiye and Kazakhstan, is happy to announce the discharge of its unaudited interim condensed consolidated monetary statements for the three and 9 months ended September 30, 2022 along with the associated administration’s dialogue and evaluation. These paperwork will probably be made obtainable below Condor’s profile on SEDAR at www.sedar.com and on the Condor web site at www.condorenergies.ca. Readers are invited to evaluate the newest company presentation obtainable on the Condor web site. All monetary quantities on this information launch are offered in Canadian {dollars}, except in any other case acknowledged.

Highlights

• The Firm has entered right into a binding sale and buy settlement to amass a 95% working curiosity in a mining license in Kazakhstan.
• Fuel manufacturing elevated 130% for a median of 122 boepd for the third quarter of 2022 in comparison with a median of 53 boepd for the second quarter of 2022 because of the just lately drilled P-7 infill effectively and P-2 workover.
• The infill drilling and workover packages enable the Firm to profit from robust Turkish gasoline costs which have elevated 202% year-to-date to $35.41 (CAD) per Mscf as of November 1, 2022 and for the three months ended September 30, 2022 the Firm realized pure gasoline gross sales costs of $157.48 per boe (2021: $43.91) and netbacks of $115.18 per boe (2021: unfavourable).
• In Kazakhstan, discussions are ongoing to achieve settlement on feed-gas and LNG end-user delivered volumes, plant areas and monetary phrases.
• Condor continues to actively pursue an settlement to function a number of producing gasoline fields in Uzbekistan and has held quite a few conferences throughout 2022 with varied authorities ministries to debate the proposed challenge.

Lithium License Acquisition

The Firm has entered right into a binding sale and buy settlement with a state-owned entity (the “Vendor”) to amass a 95% working curiosity in a mining license in Kazakhstan (the “Lithium License”). A previous effectively drilled within the Lithium License for hydrocarbon exploration encountered and examined lithium brine deposits with lithium concentrations of as much as 130 milligrams per litre as reported by the Ministry of Geology of the Kazakh Republic.

The Firm and the Vendor have established a partnership firm to carry and function the Lithium License. As per the phrases of the partnership, Condor holds a 95% working curiosity, will function and be answerable for funding all actions below the Lithium License whereas the Vendor maintains a 5% carried working curiosity. The transaction is topic to customary approvals from the Authorities of Kazakhstan and satisfaction of sure industrial circumstances typical for transactions of this nature. The transaction is predicted to be accomplished in the course of the first quarter of 2023.

The Lithium License was assigned to the Vendor on April 3, 2019, for a six-year time period and offers the subsurface exploration rights for strong minerals on a contiguous 68 km2 space. Throughout the Lithium License space, a effectively drilled in 1975 was examined for lithium within the Devonian-aged and Carboniferous-aged intervals and primarily based on wireline logs, the examined Devonian sand interval is 70 meters and the examined Carboniferous sand interval is 118 meters. The untested Devonian and Carboniferous sand intervals present a further 863 meters of lithium brine potential. Throughout 2023, the Firm plans to drill and check two wells to substantiate the lateral extension and concentrations of the brine deposits, conduct preliminary engineering for the manufacturing services, and to arrange a Nationwide Instrument 43-101 compliant mineral sources or mineral reserves report.

The Firm intends to supply the lithium by using closed-looped Direct Lithium Extraction (“DLE”) applied sciences. With the lithium already in brine resolution and with the usage of current DLE manufacturing applied sciences, the Firm expects to have a a lot smaller environmental footprint than current lithium manufacturing operations. Moreover, the Firm is evaluating the development of a solar energy era challenge to help the long-term growth of the challenge to realize net-zero emissions.

The Firm shouldn’t be treating the historic estimate as present mineral sources or mineral reserves as extra drilling and testing is important, and a certified particular person has not achieved ample work to categorise the historic estimates as present mineral sources or mineral reserves. It’s unsure if additional drilling will consequence within the space being delineated as a mineral useful resource or reserve.

Turkiye Operations

Fuel manufacturing elevated 995% to 11,249 boe for a median of 122 boepd for the third quarter of 2022 in comparison with 1,028 boe for a median of 11 boepd for the third quarter of 2021. The Firm additionally produced 320 barrels of condensate within the third quarter of 2022, in comparison with 5 barrels within the third quarter of 2021. The manufacturing improve was a results of the efficiently drilled P-7 infill effectively, a workover on the present P-2 effectively and that within the third quarter of 2021, all wells had been shut-in for 66 days for stress build-up checks. Evaluating 2022 third quarter to second quarter, gasoline manufacturing elevated 132% because of the drilling and workover program.

Because the Poyraz Ridge subject has produced for nearly 5 years, water manufacturing has elevated and would require extra workovers to assist mitigate its influence together with pure stress declines. Extra workover operations are deliberate for the fourth quarter of 2022 to proceed making the most of Turkish gasoline costs which have maintained their robust escalation: posted in Turkish Lira and transformed in CAD at prevailing alternate charges, gasoline costs have elevated 202% year-to-date to $35.41 CAD per Mscf as of November 1, 2022 and for the three months ended September 30, 2022, the Firm realized pure gasoline gross sales costs of $157.48 per boe (2021: $43.91) and netbacks of $115.18 per boe (2021: unfavourable).

LNG Initiatives

The Firm continues to mature alternatives to implement confirmed North American modular LNG applied sciences and processes in Central Asia to displace diesel gasoline utilization within the industrial, transportation and energy era sectors. Discussions with senior authorities and trade officers have taken place to progress agreements, together with with His Excellency the President of the Republic of Kazakhstan, the Deputy Prime Minister of Kazakhstan, the Minister of Power, and the Chairman of QazaqGaz.

Uzbekistan Manufacturing Contract

Pure gasoline manufacturing in Uzbekistan continues to say no attributable to insufficient capital funding and restricted new expertise functions into the sector. As inside demand continues to escalate, the federal government has introduced its intention to stop pure gasoline exports by 2025 to deal with the nation’s home wants and foster the manufacturing of value-added merchandise. The nation’s giant producing gasoline fields might understand decreased margins, in-line with having to produce gasoline at backed home costs.

In consequence, the Firm has adjusted its focus to revitalizing and working mid-sized current gasoline fields with the intent to make use of the incremental gasoline manufacturing for LNG feedstock. Offering LNG to mining operations to displace diesel utilization, as is deliberate in Kazakhstan, is predicted to yield stronger returns, particularly given the excessive diesel costs that at the moment prevail within the Uzbekistan market. The Firm’s LNG initiative also needs to lead to decreased working prices for the mines, much less dependence by the nation for diesel imports, and positively influence the nation’s carbon discount efforts. The Firm’s redefined company technique has glorious synergies that might create a vertically built-in enterprise with self-sufficient gasoline provide.

Chosen Monetary Info

The Firm’s capability to comprehend belongings and discharge liabilities within the regular course of enterprise as they grow to be due relies upon the flexibility to fund operations by producing optimistic money flows from operations, securing funding from debt or fairness financing, disposing of belongings or making different preparations. The Firm is actively pursuing varied methods to reinforce its liquidity place and people issues are mentioned in larger element within the Firm’s monetary statements and administration’s dialogue and evaluation for the three and 9 months ended September 30, 2022.

Outcomes of Operations

Manufacturing

General manufacturing elevated 1,020% to 11,569 boe or a median of 126 boepd for the three months ended September 30, 2022 from 1,033 boe or a median of 11 boepd for a similar interval in 2021 and elevated 9% to 19,481 boe or a median of 71 boepd for the 9 months ended September 30, 2022 from 17,954 boe or a median of 66 boepd for a similar interval in 2021 due primarily to the newly drilled P-7 infill effectively in June 2022 and the P-2 workover in the course of the third quarter of 2022.

Gross sales and working netback¹

For the three months ended September 30

For the 9 months ended September 30

^{1 Working netback is a non-GAAP measure and is a time period with no standardized that means as prescribed by GAAP and might not be comparable with comparable measures offered by different issuers. See “Non-GAAP Monetary Measures” on this information launch. The calculation of working netback is aligned with the definition discovered within the Canadian Oil and Fuel Analysis Handbook.}

Non-GAAP Monetary Measures

The Firm refers to “working netback” on this information launch, a time period with no standardized that means as prescribed by GAAP and which might not be comparable with comparable measures offered by different issuers. This extra info shouldn’t be thought of in isolation or as an alternative choice to measures ready in accordance with GAAP. Working netback is calculated as gross sales much less royalties, manufacturing prices and transportation and promoting on a greenback foundation and divided by the gross sales quantity for the interval on a per barrel of oil equal foundation. The reconciliation of this non-GAAP measure is offered within the “Gross sales and working netback” part of this information launch. This non-GAAP measure is usually used within the oil and gasoline trade to help in measuring working efficiency towards prior durations on a comparable foundation and has been offered to offer a further measure to investigate the Firm’s gross sales on a per barrel of oil equal foundation and talent to generate funds.

Ahead-Wanting Statements

Sure statements on this information launch represent forward-looking statements below relevant securities laws. Such statements are usually identifiable by the terminology used, equivalent to “anticipate”, “seem”, “consider”, “intend”, “count on”, “plan”, “estimate”, “funds”, “outlook”, “scheduled”, “might”, “will”, “ought to”, “may”, “would”, “within the strategy of” or different comparable wording. Ahead-looking info on this information launch consists of, however shouldn’t be restricted to, info regarding: the timing and talent to acquire the approvals from the Authorities of Kazakhstan, fulfill the industrial circumstances and full the Lithium License acquisition transaction; the potential for the Lithium License space to include commercials deposits; future lithium testing outcomes; the timing and talent to fund, allow and full the deliberate drilling actions together with drilling two extra wells and conduct preliminary engineering for the manufacturing services; the timing and talent to optimize the deliberate methodology for direct lithium extraction; the timing and talent of the untested Devonian and Carboniferous sand intervals to offer extra lithium brine potential; the timing and talent to generate a NI 43-101 compliant report; the timing and talent to supply the lithium by using closed-looped DLE manufacturing applied sciences; the timing and talent to have a a lot smaller environmental footprint than current lithium manufacturing operations; and the timing and talent to judge the development of a solar energy era challenge to help the long-term growth of the challenge to realize net-zero emissions; the consequence and timing of negotiation with the Authorities of Kazakhstan concerning the development and operation of modular LNG services; the timing and talent to function gasoline fields in Uzbekistan, improve gasoline manufacturing, use incremental gasoline for LNG feedstock, present LNG to mining operations to displace diesel utilization leading to decreased working prices and stronger returns for the mines and reduce Uzbekistan’s dependence on diesel imports, positively influence the nation’s carbon discount efforts, and to create a vertically built-in enterprise with self-sufficient gasoline provide; the timing and talent to execute a manufacturing contract with the Authorities of Uzbekistan below favorable phrases, or in any respect, the fields and exploration areas to be included and the phrases and circumstances together with however not restricted to royalty charges, value restoration, revenue allocation, gasoline advertising and pricing, authorities participation, governance, baseline manufacturing ranges and reimbursement methodology; the anticipated advantages associated to the Firm’s proposal to the Authorities of Uzbekistan and the timing and talent to obtain suggestions and endorsement of the proposal, if in any respect; the timing and talent to conduct future drilling, workover and perforating actions; the timing and talent to re-enter, case and totally consider the Yakamoz construction; the timing of and talent to drill new wells, the anticipated drilling depths, the anticipated quantity and placement of goal formations and the flexibility of the brand new wells to grow to be producing wells; the timing and talent to tie the Yakamoz subject into the Firm’s current gasoline plant; the timing and talent to pursue different initiatives and industrial alternatives; projections and timing with respect to crude oil, pure gasoline and condensate manufacturing; anticipated markets, costs, prices and working netbacks for future oil, gasoline and condensate gross sales; the timing and talent to acquire varied approvals and conduct the Firm’s deliberate exploration and improvement actions; the timing and talent to entry oil and gasoline pipelines; the timing and talent to entry home and export gross sales markets; anticipated capital expenditures; forecasted capital and working budgets and money flows; anticipated working capital; sources and availability of financing for potential budgeting shortfalls; the timing and talent to acquire future funding on favorable phrases, if in any respect; normal enterprise methods and targets; the timing and talent to acquire exploration contract, manufacturing contract and working license extensions; the potential for added contractual work commitments; the flexibility to satisfy and fund the contractual work commitments; the satisfaction of the work commitments; the outcomes of non-fulfillment of labor commitments; projections referring to the adequacy of the Firm’s provision for taxes; and remedy below governmental regulatory regimes and tax legal guidelines

By its very nature, such forward-looking info requires Condor to make assumptions that will not materialize or that might not be correct. Ahead-looking info is topic to recognized and unknown dangers and uncertainties and different elements, which can trigger precise outcomes, ranges of exercise and achievements to vary materially from these expressed or implied by such info. Such dangers and uncertainties embody, however will not be restricted to: regulatory adjustments; the timing of regulatory approvals; the chance that precise minimal work packages will exceed the initially estimated quantities; the outcomes of exploration and improvement drilling and associated actions; elements affecting the Lithium License Vendor’s capability to finish the sale of the Lithium License to Condor; prior lithium testing outcomes might not be indicative of future testing outcomes or precise outcomes; imprecision of reserves estimates and supreme restoration of reserves; the effectiveness of lithium mining and manufacturing strategies together with DLE expertise; historic manufacturing and testing charges might not be indicative of future manufacturing charges, capabilities or final restoration; the historic composition and high quality of oil and gasoline might not be indicative of future composition and high quality; normal financial, market and enterprise circumstances; trade capability; uncertainty associated to advertising and transportation; aggressive motion by different corporations; fluctuations in oil and pure gasoline costs; the consequences of climate and local weather circumstances; fluctuation in rates of interest and overseas forex alternate charges; the flexibility of suppliers to satisfy commitments; actions by governmental authorities, together with will increase in taxes; selections or approvals of administrative tribunals and the chance that authorities insurance policies or legal guidelines might change or authorities approvals could also be delayed or withheld; adjustments in environmental and different laws; dangers related to oil and gasoline operations, each home and worldwide; worldwide political occasions; and different elements, lots of that are past the management of Condor. Capital expenditures could also be affected by value pressures related to new capital tasks, together with labor and materials provide, challenge administration, drilling rig charges and availability, and seismic prices.

These threat elements are mentioned in larger element in filings made by Condor with Canadian securities regulatory authorities together with the Firm’s Annual Info Type, which can be accessed by means of the SEDAR web site (www.sedar.com).

Readers are cautioned that the foregoing checklist of essential elements affecting forward-looking info shouldn’t be exhaustive. The forward-looking info contained on this information launch are made as of the date of this information launch and, besides as required by relevant regulation, Condor doesn’t undertake any obligation to replace publicly or to revise any of the included forward-looking info, whether or not because of new info, future occasions or in any other case. The forward-looking info contained on this information launch is expressly certified by this cautionary assertion.

Abbreviations

The next is a abstract of abbreviations used on this information launch:

* Barrels of oil equal (“boe”) are derived by changing gasoline to grease within the ratio of six thousand customary cubic ft (“Mscf”) of gasoline to 1 barrel of oil primarily based on an power conversion methodology primarily relevant on the burner tip and doesn’t signify a worth equivalency on the wellhead. Given the worth ratio primarily based on the present value of crude oil as in comparison with pure gasoline is considerably totally different from the power equivalency of 6 Mscf to 1 barrel, using a conversion ratio at 6 Mscf to 1 barrel could also be deceptive as a sign of worth, significantly if utilized in isolation.

The TSX doesn’t settle for accountability for the adequacy or accuracy of this information launch.

For additional info, please contact Don Streu, President and CEO or Sandy Quilty, Vice President of Finance and CFO at 403-201-9694.