Condor Petroleum Inc. provides an update on its operations at the Zharkamys West 1 Contract Territory (the "Zharkamys Territory") and the Marsel Contract Territory (the "Marsel Territory") in Kazakhstan.

Zharkamys Territory

Drilling Update: Zhaman Koblandy 2 (ZhK-2) was directionally drilled to a depth of 2200 meters into the Triassic formation. The well successfully penetrated multiple sand packages with top seals as predicted using the 3D seismic, including the primary target containing 75 metres of continuous net reservoir. The primary target is water bearing at the point penetrated by ZhK-2, but the wellbore is also 125 meters below the structural culmination. This provides the opportunity for updip attic oil that is being evaluated as a future drilling opportunity. ZhK-2 will be abandoned and have a total well cost of $1.7 MM, which is approximately 29% below the AFE amount.

The 2012 Zharkamys budget includes drilling up to 15 wells, which are comprised of 11 exploration wells (six deep and five shallow) and four Shoba appraisal wells.

Testing Activities: The 90 day production test on Taskuduk W-3 (TasW-3) recently commenced. Initial flow rates from a 5 meter net pay interval were 280 barrels per day of 35 API gravity oil. The well is currently shut-in for a pressure build up and testing will continue into March 2012.

Regulatory approval to complete Taskuduk W-4 (TasW-4) is anticipated in February 2012. The 90 day production test on TasW-4 will follow shortly afterwards. This well penetrated 19 meters of net oil pay within two Triassic intervals. Reserve volumes (proved + probable) associated with the 2011 program are being determined by Condor's reserves auditors and will be disclosed in Q1 2012.

3D seismic: Condor completed acquisition of 2,580 square km of 3D seismic within the Zharkamys Territory in Q4 2011, providing 87% coverage of the entire Territory. Data processing is ongoing and the preliminary 'fast track' volumes have been received and are being interpreted. The exploration portfolio continues to expand with play types that range from Cretaceous to Permian targets, including new plays that appear to be fully salt-encapsulated.

Marsel Territory

Drilling Update: The Asa-1 well depth is currently at 1900 meters and programed to reach a total depth of 2,900 meters. The primary target (Devonian sandstones) is approximately 600 meters from the present depth. The Asa-1 well offsets proven gas plays in the Pridorozhnaya and Ortalyk fields.

Drilling of 2 additional Marsel wells is included in the 2012 budget.

2D Seismic: Acquisition of a 900 km 2D seismic program has been completed in the southern region and data processing is ongoing. Initial review of the data indicates several large, untested structures with Devonian and Carboniferous potential, which continue 'on trend' with the already proven Pridorozhnaya and Ortalyk gas fields.

Tags: Condor Resources Inc