Condor receives a favorable ruling on the Zharkamys exploration contract extension
Friday, Mar 02, 2018
Condor Petroleum Inc. (“Condor” or the “Company”) (TSX: CPI), a Canadian based oil and gas company focused on production and exploration activities in Turkey and Kazakhstan, is pleased to announce it has received a favorable Kazakhstan Civil Court (“Civil Court”) ruling related to the extension of the Zharkamys exploration contract (“Zharkamys Contract”).

The Company’s Zharkamys Contract with the Ministry of Energy of the Government of Kazakhstan (“Ministry”) was due to expire on December 14, 2016. Prior to this date, the Kazakhstan Chamber of International Commerce and subsequently the Civil Court confirmed that a force majeure event had occurred which, under Kazakhstan subsurface use law, can be the basis for the Zharkamys Contract validity period to be extended for a period of 630 days. In May 2017, the Kazakhstan Court of Appeal (“Court of Appeal”), pursuant to an appeal filed by the Ministry, released its ruling that the force majeure event was not recognized and reversed the decision of the Civil Court. The Company referred the case to the Kazakhstan Supreme Court (“Supreme Court”) and in November 2017 the Supreme Court released its ruling which overturned both the Civil Court and the Court of Appeal rulings and referred the case back to the Civil Court for further review by a new panel of judges.

On March 1, 2018 the Civil Court released its ruling which confirmed that the force majeure event had occurred. The Ministry has the right to appeal the Civil Court ruling within 30 calendar days following the issuance of the ruling. If the Ministry does not appeal within the mandated period, the Civil Court ruling will enter into legal force and would allow the Company to submit an addendum to the Zharkamys Contract to the Ministry which, after ratification, would extend the exploration period by 630 days.

The on-going court proceedings do not affect the Company’s production rights for the Shoba and Taskuduk oilfields which are each governed by separate production contracts.

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