CALGARY, Alberta, Nov. 14, 2022 (GLOBE NEWSWIRE) — Condor Energies Inc. (“Condor” or the “Firm”) (TSX: CDR), a Canadian based mostly vitality 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 can be made accessible beneath Condor’s profile on SEDAR at www.sedar.com and on the Condor web site at www.condorenergies.ca. Readers are invited to assessment the most recent company presentation accessible on the Condor web site. All monetary quantities on this information launch are introduced in Canadian {dollars}, except in any other case acknowledged.

Highlights

• The Firm has entered right into a binding sale and buy settlement to accumulate a 95% working curiosity in a mining license in Kazakhstan.

• Gasoline manufacturing elevated 130% for a mean of 122 boepd for the third quarter of 2022 in comparison with a mean of 53 boepd for the second quarter of 2022 as a result of just lately drilled P-7 infill nicely and P-2 workover.

• The infill drilling and workover applications permit the Firm to learn from sturdy 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: unfavorable).

• In Kazakhstan, discussions are ongoing to succeed in settlement on feed-gas and LNG end-user delivered volumes, plant places 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 numerous authorities ministries to debate the proposed undertaking.

Lithium License Acquisition

The Firm has entered right into a binding sale and buy settlement with a state-owned entity (the “Vendor”) to accumulate a 95% working curiosity in a mining license in Kazakhstan (the “Lithium License”). A previous nicely 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.

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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 chargeable for funding all actions beneath 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 business circumstances typical for transactions of this nature. The transaction is predicted to be accomplished throughout 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. Inside the Lithium License space, a nicely drilled in 1975 was examined for lithium within the Devonian-aged and Carboniferous-aged intervals and based mostly 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 an extra 863 meters of lithium brine potential. Throughout 2023, the Firm plans to drill and take a look at 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 assets 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 answer and with the usage of present DLE manufacturing applied sciences, the Firm expects to have a a lot smaller environmental footprint than present lithium manufacturing operations. Moreover, the Firm is evaluating the development of a solar energy technology undertaking to help the long-term growth of the undertaking to realize net-zero emissions.

The Firm is just not treating the historic estimate as present mineral assets or mineral reserves as further drilling and testing is critical, and a professional particular person has not finished adequate work to categorise the historic estimates as present mineral assets or mineral reserves. It’s unsure if additional drilling will end result within the space being delineated as a mineral useful resource or reserve.

Turkiye Operations

Gasoline manufacturing elevated 995% to 11,249 boe for a mean of 122 boepd for the third quarter of 2022 in comparison with 1,028 boe for a mean 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 nicely, a workover on the prevailing P-2 nicely and that within the third quarter of 2021, all wells have been shut-in for 66 days for strain build-up exams. 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 further workovers to assist mitigate its influence together with pure strain declines. Extra workover operations are deliberate for the fourth quarter of 2022 to proceed benefiting from Turkish gasoline costs which have maintained their sturdy escalation: posted in Turkish Lira and transformed in CAD at prevailing trade 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: unfavorable).

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 technology 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 Vitality, and the Chairman of QazaqGaz.

Uzbekistan Manufacturing Contract

Pure gasoline manufacturing in Uzbekistan continues to say no as a result of insufficient capital funding and restricted new know-how functions into the sector. As inner 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 massive producing gasoline fields could understand diminished margins, in-line with having to provide gasoline at backed home costs.

In consequence, the Firm has adjusted its focus to revitalizing and working mid-sized present 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 present prevail within the Uzbekistan market. The Firm’s LNG initiative must also end in 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 wonderful synergies that would create a vertically built-in enterprise with self-sufficient gasoline provide.

Chosen Monetary Data

The Firm’s potential to appreciate property and discharge liabilities within the regular course of enterprise as they change into due depends upon the power to fund operations by producing constructive money flows from operations, securing funding from debt or fairness financing, disposing of property or making different preparations. The Firm is actively pursuing numerous methods to reinforce its liquidity place and people issues are mentioned in higher 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 mean of 126 boepd for the three months ended September 30, 2022 from 1,033 boe or a mean of 11 boepd for a similar interval in 2021 and elevated 9% to 19,481 boe or a mean of 71 boepd for the 9 months ended September 30, 2022 from 17,954 boe or a mean of 66 boepd for a similar interval in 2021 due primarily to the newly drilled P-7 infill nicely in June 2022 and the P-2 workover throughout 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 introduced 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 Gasoline 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 introduced by different issuers. This extra data shouldn’t be thought of in isolation or as an alternative 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 introduced within the “Gross sales and working netback” part of this information launch. This non-GAAP measure is often used within the oil and gasoline trade to help in measuring working efficiency towards prior intervals on a comparable foundation and has been introduced to offer an extra measure to research the Firm’s gross sales on a per barrel of oil equal foundation and talent to generate funds.

Ahead-Trying Statements

Sure statements on this information launch represent forward-looking statements beneath relevant securities laws. Such statements are usually identifiable by the terminology used, comparable to “anticipate”, “seem”, “consider”, “intend”, “anticipate”, “plan”, “estimate”, “finances”, “outlook”, “scheduled”, “could”, “will”, “ought to”, “might”, “would”, “within the strategy of” or different comparable wording. Ahead-looking data on this information launch consists of, however is just not restricted to, data regarding: the timing and talent to acquire the approvals from the Authorities of Kazakhstan, fulfill the business circumstances and full the Lithium License acquisition transaction; the potential for the Lithium License space to comprise commercials deposits; future lithium testing outcomes; the timing and talent to fund, allow and full the deliberate drilling actions together with drilling two further 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 further 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 present lithium manufacturing operations; and the timing and talent to judge the development of a solar energy technology undertaking to help the long-term growth of the undertaking to realize net-zero emissions; the end result and timing of negotiation with the Authorities of Kazakhstan relating to 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 beneath 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, price restoration, revenue allocation, gasoline advertising and marketing 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 power of the brand new wells to change into producing wells; the timing and talent to tie the Yakamoz subject into the Firm’s present gasoline plant; the timing and talent to pursue different initiatives and business 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 numerous approvals and conduct the Firm’s deliberate exploration and growth 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; common 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 power 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 beneath governmental regulatory regimes and tax legal guidelines

By its very nature, such forward-looking data requires Condor to make assumptions that won’t materialize or that might not be correct. Ahead-looking data 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 data. Such dangers and uncertainties embody, however should not restricted to: regulatory adjustments; the timing of regulatory approvals; the danger that precise minimal work applications will exceed the initially estimated quantities; the outcomes of exploration and growth drilling and associated actions; elements affecting the Lithium License Vendor’s potential 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 know-how; 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; common financial, market and enterprise circumstances; trade capability; uncertainty associated to advertising and marketing 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 international foreign money trade charges; the power 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 could 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 price pressures related to new capital tasks, together with labor and materials provide, undertaking administration, drilling rig charges and availability, and seismic prices.

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

Readers are cautioned that the foregoing listing of vital elements affecting forward-looking data is just not exhaustive. The forward-looking data 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 data, whether or not because of new data, future occasions or in any other case. The forward-looking data 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 toes (“Mscf”) of gasoline to at least one barrel of oil based mostly on an vitality conversion methodology primarily relevant on the burner tip and doesn’t symbolize a price equivalency on the wellhead. Given the worth ratio based mostly on the present value of crude oil as in comparison with pure gasoline is considerably completely different from the vitality 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, notably if utilized in isolation.

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

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