Corporate Presentation November 2017 w w w .condorpetroleum .com - PowerPoint PPT Presentation

Corporate Presentation November 2017 w w w .condorpetroleum .com TSX:CPI November 2017 www.condorpetroleum.com 1

Condor Executive Sum m ary Ortakoy Licences in Turkey’s Thrace Basin  A TSX-listed oil and gas developer with a strategically positioned and diverse asset base  100% interests in licences in northwest Turkey and Kazakhstan  Near term sustainable cashflow and production growth  Commercial production of 450 bopd in Kazakhstan  Recently completed construction of the Poyraz Ridge gas field development in Turkey Zharkamys West 1 in Kazakhstan’s Pre-Caspian Basin  Material cash flow from high netback gas reserves  Compelling valuation upside  Poyraz Ridge gas production is expected to commence in Q4 2017 at 10 MMscf/ d  Robust prospect and lead inventories in Turkey and Kazakhstan  6.9 MMboe of 2P Reserves *  3.7 MMboe of Proven reserves * As of December 31, 2016 --- See Reserves Advisory www.condorpetroleum.com 2 November 2017

Condor Snapshot Capital Markets Near Term Focus  Initiate Poyraz Ridge gas production TSX Sym bol CPI and cash flows  Facilities and sales gas pipeline are constructed Com m on Shares 43.3 million  Completing customary government approvals  Mature prospects and leads to drill- $30 million ready state in Turkey Market Capitalization + ($.70 per share)  Incorporate recent Yakamoz 1 results that validated the Ortakoy petroleum system Cash + Cash Equivalents # $7.2 million  Maintain Kazakhstan oil production and cash flows  Currently producing 450 bopd Borrow ings US$10 million  Q3 2017 operating netback of $19.79 per barrel  Extend Zharkamys exploration license 1P = 3.7 term Reserve Volum es* 2P = 6.9 ( MMboe)  Court hearing scheduled for November 29, 2017 3P = 10.3 + All amounts in this presentation are in Canadian dollars unless otherwise stated # As at September 30, 2017 * As of December 31, 2016 --- See Reserves Advisory November 2017 www.condorpetroleum.com 3

Northw est Turkey: Ortakoy Licenses Turkey is one of Europe’s Hubs for Natural Gas Supply  100% WI in two production licenses  Poyraz Ridge and Destan fields cover 110 km2  Extensive seismic coverage  472 km of regional 2D & full 3D over Poyraz Ridge  Gas discovered on 6 of 8 structures drilled to date  23.2 BCF of 2P reserves * at Poyraz Ridge  Sales pipeline connected into the main Turkish pipeline system Extensive Prospect and Lead Inventory  6” connecting pipeline constructed and tied into the 36” ITGI (Interconnect Turkey-Greece-Italy) ITGI 36” Pipeline  Outstanding economics  Huge regional demand for gas and import reliant  Strong gas prices and netbacks  Favorable fiscal regime  12.5% gas royalty  20% corporate income tax * As of December 31, 2016 --- See Reserves Advisory November 2017 www.condorpetroleum.com 4

Poyraz Ridge: Play Opening Discovery Multiple Stacked Pay Zones  Field Appraisal and development in a proven gas-prone hydrocarbon system  Conventional thrust-fold play concept in the early stages of value creation  Multiple stacked-pay productive intervals at shallow depths  93% methane gas with no CO 2 or H 2 S  Inexpensive wells  $1.8 MM drill and complete cost  Near field exploration potential with similar looking structures November 2017 www.condorpetroleum.com 5

Poyraz Ridge Developm ent Status Central Processing Facility  Construction of the gas facilities and sales gas pipeline is complete  Currently obtaining customary government agency approvals  10 MMscf/ day commencing in Q4 2017  Development gas wells have been drilled and tied-in  Multi-year gas sales contract executed  Facilities can be expanded to 6” Sales Gas Pipeline Tied into the National Grid accommodate subsequent gas developments  Other multiple “stacked” reservoir targets like Poyraz Ridge exist on license November 2017 www.condorpetroleum.com 6

Poyraz Ridge Central Processing Facility Gas Processing Equipment Gas Compression Equipment Utility Gas Skid Sales Gas Metering Equipment November 2017 www.condorpetroleum.com 7

Maintaining Gas Production Levels Poyraz Ridge Gas Field  Recent seismic inversion analysis has identified multiple stacked gas sands in the primary Gazhanedere formation  Seismic data using attribute analysis has been calibrated with PW 4 horizontal well results  Inversion supports interpretation Poyraz West-6  Integration of seismic data and well results has enhanced the geological model  Guides future development drilling  Additional horizontal wells to be drilled along the axis of the “fluvial – channel” reservoir systems  Targets include ‘attic gas’ stranded higher on the field  1 – 2 wells planned for 2018  Evaluating options to monetize the neighboring Destan Ridge discovery November 2017 www.condorpetroleum.com 8

Exploitation: Re-Targeting Yakam oz 1 High Mud Gas Shows  Yakamoz 1 well drilled in Q3 2017 Yakamoz-1a (Proposed Location) encountered significant mud gas shows Yak 1  Gas shows associated with fractures  Gross interval of 300 meters  New seismic calibration and mapping indicate well was drilled off-structure  120 meters of structure has been Yak 1 Gas Show s remapped in an up-dip location  Additional potential exists in pre- Yak-1 TD Miocene, pre-Sogucak and fractured basement  $1.2 MM to sidetrack original well  Includes penetrating deeper targets  Yakamoz Field is located 2 km north of Poyraz Ridge facilities and can be tied-in for ~ $1 MM November 2017 www.condorpetroleum.com 9

Kazakhstan: Zharkam ys W est 1 Pre-Caspian Basin  Located in the Pre-Caspian Basin  46 Billion boe discovered*  Super-giant fields in Pre-Caspian Basin include*  Kashagan: 13 B bbls; Tengiz: 9 B bbls; Zhanazhol: 1 B bbls  Pursuing multiple proven geologic play-types  Seven play-types already identified from 650 to 7000 meters  3777 km 2 block (933,000 acres)  100% working interest  Exploration period expired in December 2016 Zharkamys West 1 and Surrounding Fields  Court proceedings are underway in an attempt to extend the license duration  3 oil discoveries so far  KN-E, Shoba, Taskuduk  Extensive seismic data set acquired  2532 km2 3D has successfully imaged Pre-Salt and Intra-Salt (Primary Basin) targets * Readers are cautioned that regional oil and gas resource and reserve volumes are sourced from industry and company websites and may not be NI 51-101 compliant November 2017 www.condorpetroleum.com 10

Phased Strategy in Kazakhstan Modern 3D Seismic Images Multiple Exploration Plays  Phase 1 : Discovered shallow oil fields Cretaceous Post-Canopy  Acquired extensive 3D seismic 650 – 2000 m Jurassic Phase 1  Drilled shallow, inexpensive wells to calibrate seismic and initiate export sales Low er Perm ian Horn Kungurian Salt  Shoba, Taskuduk in commercial production L. – Mid Triassic Salt Flank Sub-Canopy  Phase 2 : Pursuing Break-out Intra- 2000 – 5000 m Phase 2 Salt (‘Primary Basin’) play Prim ary Basin  Confirmed hydrocarbon source, migration, trap seal and reservoir at ZW1 with KN-E discovery Upper Perm ian  Both Primary Basin targets drilled have encountered over-pressured hydrocarbons Low er Perm ian Pre-Salt 5000 – 7000 m  Phase 3 : Leverage into highest Phase 3 impact, Pre-Salt prospects Carboniferous  Apply Primary Basin geological and operational learnings Mid Devonian November 2017 www.condorpetroleum.com 11

Monetizing Shallow Oil Discoveries Shoba Gauging Station  Commercial production is continuing at Shoba and Taskuduk  34 0 – 41 0 API oil at reservoir depths of 750 to 1100 meters  Q3 2017 operating netback of $19.79 per barrel  Shoba horizontal wells are performing as predicted  Currently producing 450 bopd  First shallow horizontal wells drilled in the Pre- Caspian basin Shoba Horizontal vs Vertical Well Performance  First wells in Kazakhstan to utilize inflow control Sh-10 and Sh-11 devices to minimize coning Horizontal Wells  Two additional horizontal wells are expected to increase production to over Vertical Wells 1000 barrels per day  Estimating $1.8 MM per well to drill and complete November 2017 www.condorpetroleum.com 12

Building on Prim ary Basin Results Recently Drilled Primary Basin Wells  2 Primary Basin targets drilled at ZW1 KN-501 KN-E Wells  Both encountered over-pressured hydrocarbons 8 km  41 0 API light oil at the KN-E wells Salt Section 2 8 1 0 m  Numerous gas shows at KN-501 1600 m Kiyaktysai  Both wells confirmed hydrocarbon source, Salt Dom e migration, trap and seal are working 1876m  Calibrated 3D seismic to the geological age of Primary Basin sediments  Sediments that are a certain geological age are 3992 m key to Primary Basin commercial success  Confirmed geologic model accuracy and ability to predict sedimentary packages The KN-501 was drilled to 3,992 meters for  KN-501 target was fully encapsulated $7.7 MM, penetrating a massive 2,810 in salt before younger, coarser-grained meter salt section without incident sediments were deposited  KN-501’s older, fine-grained Ufimian sediments were not of sufficient size to generate reservoir quality rock  Subsequent wells are targeting younger, coarser- grained sediments, like the Kazanian sediments drilled at KN-E November 2017 www.condorpetroleum.com 13