Condor Petroleum Inc. (TSX: T.CPI
) announced that it has received irrevocable bank guarantees totaling US$83 million for the sale of the company's interest in the Marsel Territory in Kazakhstan. The total sale price is US $88 million.
The company currently holds a 66% interest in Marsel Petroleum LLP which has the exploration rights to the 18,500 square kilometre Marsel Territory, located in Kazakhstan's Chu‐Sarysu basin.
According to the Condor Petroleum press release
, the irrevocable bank guarantees were received from a multinational, publically listed financial institution and confirm the buyer's intent and ability to complete this transaction.
As previously announced, the transaction is expected to be completed by the fourth quarter of 2013, once the necessary waivers and consents from the Government of Kazakhstan are obtained.
In the interim period prior to closing, the buyer has provided a US $5.0 million loan to fund ongoing Marsel exploration activities.
The company intends to use the proceeds from the Marsel sale to continue it's near term focus on the exploration and development of the company's Zharkamys Territory and to pursue other oil-related growth opportunities within Kazakhstan.
Condor is a Canadian oil and gas company with assets in Kazakhstan.
On Thursday, Condor rose 3.3% and was trading at $0.465 a share. The company had a market cap of $161 million, based on 346.1 million shares outstanding.