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Gas Burst Hits Condor's Shoba Well

2012-08-30

Condor Petroleum Inc. reported Monday that it shut in drilling operations at its Shoba 7 appraisal well at the Zharkamys West 1 Contract Territory in Kazakhstan after an uncontrollable gas influx occurred in the wellbore.

The well was drilled to core point at 2,395 feet (730 meters). While tripping out of the hole for core barrels, an uncontrolled gas influx occurred in the wellbore and as a result the Well was shut in and well control operations were commenced.

Currently the gas from the influx is being safely flared and the fluids (mud and water) released at surface have been contained. In addition, a surface breach of drilling mud and gas has occurred adjacent to the Well's drilling location.

This area has been contained to minimize any environmental impact or fire hazard. The targeted oil bearing zone had not been penetrated and to date no oil has been observed at surface. There have been no injuries to personnel or damage to equipment other than the drill string which may be damaged or lost in the wellbore.

The company intends to continue well control operations until the Shoba 7 gas zone has been isolated and sealed from flow to surface. If the current well control operations are unsuccessful, the Company may need to take additional measures which may include drilling a relief well.