|By Marketwired .||
|September 16, 2013 02:00 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 09/16/13 -- Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is pleased to announce the issuance of a senior unsecured note in the principal amount of CAD $15,000,000 (the "Note"). The Note shall bear interest at 16% per annum with 1% payable on closing and the remaining 15% accruing daily and payable quarterly in arrears.
These funds allow the Company to accelerate exploration and development activities at the Zharkamys Territory during the interim period until the Marsel Transaction (as defined below) is completed. The Note proceeds may also be used for other general corporate expenditures and debt service obligations under the Note.
The Note is due on the earlier of September 15, 2014 and on receipt of the proceeds from the disposition of the Company's 66% participating interest in and certain indebtedness of Marsel Petroleum LLP (the "Marsel Transaction"). The Note includes customary covenants, representations, warranties and default provisions for a senior unsecured note of a similar nature, including restrictions on incurring additional debt.
About Condor Petroleum Inc.
Condor is a Canadian oil and gas company with assets in Kazakhstan. Condor holds a 100% interest in the exploration rights to the 3,777 km2 Zharkamys West 1 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 km2 Marsel Territory, located in Kazakhstan's Chu-Sarysu basin. The Company is listed on the TSX under the symbol "CPI".
All statements other than statements of historical fact may be forward-looking statements. Such statements are generally identifiable by the terminology used, such as "seek", "anticipate'', "believe'', "intend", "expect", "plan", "estimate", "continue", "project", "predict", "budget'', "outlook'', "may", "will", "should", "could", "would" or other similar wording. Forward-looking statements in this press release include, but are not limited to, the anticipated completion of the Marsel Transaction, the expected timing for closing of the Marsel Transaction and the use of the proceeds of the Note. Forward-looking statements involve the use of certain assumptions that may not materialize or that may not be accurate and are subject to known and unknown risks and uncertainties and other factors, which may cause actual results or events to differ materially from those expressed or implied by such information. Such factors and assumptions include, among other things, risks that the conditions to the transaction including the consents and waivers of the Government of Kazakhstan and certain third parties will not be satisfied or will not be satisfied in a timely fashion, regulatory changes, the timing of regulatory approvals. In the event the Marsel Transaction does not close, Condor may need to pursue other sources of financing, which may or may not be available, in order to fund its ongoing operations and repay the Note on the Maturity Date. Condor's operations are also subject to certain other risks and uncertainties including, the effects of weather and climate conditions, fluctuation in interest rates and foreign currency exchange rates, the availability of suppliers and their ability to meet commitments, risks inherent with oil and gas operations, both domestic and international. These factors are discussed in greater detail under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form for the year-ended December 31, 2012. The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not undertake any obligation to update or to revise any of the forward looking information, except as required by applicable law.
Condor Petroleum Inc.
President & Chief Executive Officer
Condor Petroleum Inc.
Vice President, Finance & Chief Financial Officer