Global Travel Vaccines Market Report 2021: Market Reached a Value of $2.94 Billion in 2020


Bloomberg

China’s $87 Billion Electric-Car Giant Hasn’t Sold a Vehicle Yet

(Bloomberg) — China Evergrande New Energy Vehicle Group Ltd.’s expansive pop-up showroom sits at the heart of Shanghai’s National Exhibition and Convention Center. With nine models on display, it’s hard to miss. The electric car upstart has one of the biggest booths at China’s 2021 Auto Show, which starts Monday, opposite storied German automaker BMW AG. Yet its bold presence belies an uncomfortable truth — Evergrande hasn’t sold a single car under its own brand.China’s largest property developer has an array of investments outside of real estate, from soccer clubs to retirement villages. But it’s the recent entry into electric cars that’s captured investors’ imaginations. Shareholders have pushed Evergrande NEV’s Hong Kong-listed stock up more than 1,000% over the past 12 months, allowing it to raise billions of dollars in fresh capital. It now has a market value of $87 billion, greater than Ford Motor Co. and General Motors Co.Such exuberance over an automaker that has repeatedly pushed back forecasts for when it will mass produce a car is emblematic of the froth that has been building in EVs over the past year, with investors plowing money into a rally that briefly made Elon Musk the world’s richest person and has some concerned about a bubble. Perhaps nowhere is that more evident than in China, home to the world’s biggest market for new energy cars, where a mind-boggling 400 EV manufacturers now jostle for consumers’ attention, led by a cabal of startups valued more than established auto players but which have yet to turn a profit.Evergrande NEV was a relatively late entrant to that scene.In March 2019, Hui Ka Yan, Evergrande’s chairman and one of China’s richest men, vowed to take on Musk and become the world’s biggest maker of EVs in three to five years. Tesla Inc.’s Model Y crossover had just had its global debut. In the two years since, Tesla has gained an enviable foothold in China, establishing its first factory outside the U.S. and delivering around 35,500 cars in March. Chinese rival Nio Inc. earlier this month reached a significant milestone when its 100,000th EV rolled off the production line, prompting Musk to tweet his congratulations.Read more: Nio, Xpeng Exude Optimism as EVs Boom: Shanghai Auto ShowDespite his lofty ambitions and Evergrande NEV’s rich valuation, Hui has repeatedly pushed back car-production targets. The tycoon’s coterie of rich friends, among others, have stumped up billions, but making cars — electric or otherwise — is hard, and hugely capital intensive. Nio’s gross margins only flipped into positive territory in mid-2020, after years of heavy losses and a lifeline from a municipal government.Speaking on an earnings call in late March after Evergrande NEV’s full-year loss for 2020 widened by a yawning 67%, Hui said the company planned to begin trial production at the end of this year, delayed from an original timeline of last September. Deliveries aren’t expected to start until some time in 2022. Expectations for annual production capacity of 500,000 to 1 million EVs by March 2022 were also pushed back until 2025. Still, the company issued a buoyant new forecast: 5 million cars a year by 2035. For comparison, global giant Volkswagen AG delivered 3.85 million units in China in 2020.It’s not just Evergrande’s delayed production schedule that’s raising eyebrows. A closer look under the company’s hood reveals practices that have industry veterans scratching their heads: from making selling apartments part of car executives’ KPIs, to attempting a model lineup that would be ambitious for even the most established automaker.‘Weird Company’“It’s a weird company,” said Bill Russo, the founder and chief executive officer of advisory firm Automobility Ltd. in Shanghai. “They’ve poured a lot of money in that hasn’t really returned anything, plus they’re entering an industry in which they have very limited understanding. And I’m not sure they’ve got the technological edge of Nio or Xpeng,” he said, referring to the New York-listed Chinese EV makers already deploying intelligent features in their cars, like laser-based navigation.A closer look at Evergrande NEV’s operations reveals the extent of its unorthodox approach. While it’s established three production bases — in Guangzhou, Tianjin in China’s north, and Shanghai — the company doesn’t have a general car assembly line up and running. Equipment and machinery is still being adjusted, according to people who have seen inside the factories but don’t want to be identified discussing confidential matters.In a response to questions from Bloomberg, Evergrande NEV said it was preparing machinery for trial production, and would be able to make “one car a minute” once full production is reached.The company is targeting mass production and delivery next year of four models — the Hengchi 5 and 6; the luxe Hengchi 1 (which will go up against Tesla’s Model S); and the Hengchi 3, according to people familiar with the matter. The company has told investors it aims to deliver 100,000 cars in 2022, one of the people said, roughly the number of units Nio, Xpeng Inc. and Li Auto Inc., the other U.S.-listed Chinese EV contender, delivered last year, combined.Its workers are also being asked to help sell real estate, the backbone of the Evergrande empire.New hires are required to undergo internal training and attend seminars that drill them on the company’s property history and have nothing to do with car making. In addition, employees from all departments, from production-line workers to back-office staff, are encouraged to promote the sale of apartments, whether through posting ads on social media or bringing relatives and friends along to sale centers to make them appear busy. Managerial-level staff even have their performance bonuses tied to such endeavors, people familiar with the measure said.Meanwhile, the ambitious targets have Evergrande NEV turning to outsourcing and skipping procedures seen as normal practice in the industry, people with knowledge of the situation say.While it’s hiring aggressively and recently scored Daniel Kirchert, a former BMW executive who co-founded EV startup Byton Ltd., the firm has contracted most of the design and R&D of its cars to overseas suppliers, some of the people said. Contracting out the majority of design and engineering work is an unusual approach for a company wanting to achieve such scale.14 Models At OnceOne of those companies is Canada’s Magna International Inc., which is leading the development of the Hengchi 1 and 3, one of the people said. Evergrande NEV has also teamed with Chinese tech giants Tencent Holdings Ltd. and Baidu Inc. to co-develop a software system for the Hengchi range. It will allow drivers to use a mobile app to instruct the car to drive via autopilot to a certain location and use artificial intelligence to switch on appliances at home while on the road, according to a statement last month.A spokesperson for Evergrande said it was working with international partners including Magna, EDAG Engineering Group AG and Austrian parts maker AVL List GmbH in developing “14 models simultaneously.” Representatives from Magna declined to comment. A Baidu spokesperson said the company had no further details to share, while a representative for Tencent said the software venture is with a related firm called Beijing Tinnove Technology Co. that operates independently. Tinnove didn’t respond to requests for comment.Rather than staggering model releases, Evergrande NEV appears to be rolling out every type of car all at once under its Hengchi brand, which sports a roaring gold lion on the badge and translates loosely to ‘unstoppable gallop.’ The nine models being launched span almost all major passenger vehicle segments from sedans to SUVS and multi-purpose vehicles. Prices will range from about 80,000 yuan ($12,000) to 600,000 yuan, although the final costs could change, a person familiar said.That’s a completely different product development strategy to EV pioneers like Tesla, which only has four models on offer. Nio and Xpeng have also chosen to focus on just a handful of marques, and even then are struggling to break into the black.“The market has proved the effectiveness of the ‘one product in vogue at one time’ strategy,” said Zhang Xiang, an automobile industry researcher at the North China University of Technology. “Evergrande is offering many products and expects a win. There’s a question mark over whether this will work.”Without any long-term carmaking nous, Evergrande has issued uncompromising directives to meet its latest production targets, according to the people. Two models, including the Hengchi 5, a compact SUV that rivals Xpeng’s G3, are targeting mass production in a little over 20 months. To hit that timing, certain industry procedures, like making mule cars, or testbed vehicles equipped with prototype components that require evaluation, may be skipped, people familiar with the situation said. Evergrande told Bloomberg it has entered a “sprint stage toward mass production.”As it is, Bloomberg could only find one instance where the Hengchi 5 has been showcased in public, in photos and grainy footage released by Evergrande in February as the cars drove around a snow-covered field in Inner Mongolia. The company’s shares surged to a record.Glossing over those steps is unusual, said Zhong Shi, a former automotive project manager turned independent analyst.“There’s a standard engineering process of product development, validation and verification, which includes several laboratory and road tests” in China and everywhere else, Zhong said. “It’s hard to compress that to shorter than three years.”While there’s no suggestion Evergrande’s approach violates any regulations, its stock-market run could be in for a reality check. After similarly hefty market gains, some EV startups in the U.S. that have yet to prove their viability as revenue-generating, profitable entities have lost their shine over the past few months amid concern about valuations and as established carmakers like VW move faster into EV fray.Read more: The End of Tesla’s Dominance May Be Closer Than It AppearsThe industry’s multi-billion dollar surge also hasn’t escaped Beijing’s attention. Evergrande NEV shares dipped lower last month after an editorial from the state-run Xinhua news agency highlighted concerns about how the EV sector is evolving. Of particular worry are companies that are shirking their responsibility to build quality cars, a blind race by local governments to attract EV projects, and high valuations by companies that have yet to deliver a single mass-produced car, according to the missive, which named Evergrande specifically in that regard. “The huge gap between production capacity and market value shows there is hype in the NEV market,” it said.Still, Evergrande NEV’s stock has gained 18% since then, buoyed by the outlook for China’s electric-car market. EVs currently account for about 5% of China’s annual car sales, BloombergNEF data show, with demand forecast to soar as the market matures and electric-car prices fall. EV sales in China may climb more than 50% this year alone, research firm Canalys said in a February report.With competition also on the rise, some outside Evergrande NEV’s loyal shareholder base remain skeptical.“The market is getting crowded but unless you have a preferred lane, there’s not much chance to win,” Automobility’s Russo said. “Maybe there’s some synergy with the property businesses but right now it’s an EV story, and a pretty expensive one.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.



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HVS: Hotel transactions set for recovery after 2020 slump | News


Total European hotel transaction volume fell by 69 per cent in the year of the pandemic following a record high the previous year when €27 billion-worth of hotel deals were struck.

According to the annual European Hotel Transactions 2020, published this week by HVS and its brokerage and investment services division HVS Hodges Ward Elliott, hotel transaction volume reached €8.5 billion last year.

Single-asset transactions accounted for 65 per cent of all deals,  totalling €5.5 billion, while portfolio deals represented 35 per cent at €3 billion.

Before the pandemic, 2020 was set for record transaction levels.

The year started strongly with transactions in January and February up 2.5 per cent on 2019 with volumes of €2.7 billion and a 1.8 per cent rise in the average sale prices per room to €170,000.

Subsequent lockdowns across Europe coupled with limited availability of debt financing pushed transaction levels down by 66 per cent with only one type of buyer, high-net-worth individuals, investing in larger volumes of hotels than in the previous year.

A total of 201 European hotels and more than 44,000 rooms exchanged owners in 2020.

The UK retained its position at the top of the transaction table, posting the highest level of investment volume across Europe with a total of €2.1 billion (£1.8 billion).

Some €1.6 billion-worth (£1.4 billion) of UK transactions were London-based.

Germany maintained second place in the transaction rankings, with total hotel investment volume for the year reaching €1.7 billion.

Munich was its most favoured city with €501 million-worth of transactions.

Looking ahead, HVS expects that the second half of 2021 will begin to show signs of transaction volume recovery as economic support programmes fall away and loans come up for refinancing, but the bulk of the recovery is likely to happen in 2022 in parallel with rising hotel revenue streams.

“The full impact of the pandemic is expected to affect the transaction market later this year with an increase in distressed debt and opportunistic investment ahead of a gradual market recovery.

“However, the majority of volume recovery is expected in 2022 as immunisation programmes are completed and the leisure and corporate travel sectors start to recover,” commented report author Shaffer Patrick, associate, HVS Hodges Ward Elliott, London.

More Information

Take a look at the full report here.





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Expo 2020 hails Sustainability Pavilion showcase a success | News


Expo 2020 Dubai has sought to prove it is ready to fully open its doors to the world later this year, after safely and successfully welcoming more than 100,000 visitors to experience Terra – the Sustainability Pavilion.

Running from late January until last weekend, the limited-time showcase was an opportunity for the UAE community to preview one of the signature visitor experiences of Expo 2020.

The attraction also offered a glimpse of what is to come when the first World Expo to be held in the Middle East, Africa and South Asia (MEASA) region welcomes visitors from around the world from October 1st.

In total, Expo 2020 Dubai is still seeking to welcome 25 million visitors over its six-month run.

Marjan Faraidooni, chief experience officer, Expo 2020 Dubai, said: “As we continue to navigate this period of unprecedented change, we are delighted to have offered the UAE community the chance to preview the Sustainability Pavilion, demonstrating our unwavering commitment to bringing the world together and finding answers to our most pressing challenges.

“Supported by our world-class partners, we have showcased our readiness to safely welcome the world and host a global event that not only excites and inspires, but also serves as a unique opportunity for humanity to come together in a spirit of optimism, hope and shared purpose.”

Terra – the Sustainability Pavilion offers an emotive visitor experience and uncovers the hidden harmful impacts of our personal choices.

It seeks to empower all who visit to become agents of change, consider how their behaviour impacts the environment and break the cycle of consumerism.

During the preview, a number of health and safety best practices – from social distancing and capacity controls to on-site rapid testing for staff and vendors – were incorporated across the site.





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Where to travel in 2020


Where to travel in 2020

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CDC guidelines for Thanksgiving 2020 amid COVID-`19


The Centers for Disease Control and Prevention, which has been urging Americans to stay close to home for months, updated its advice Thursday to an even blunter message: Stay home for Thanksgiving.

“Postponing travel and staying home is the best way to protect yourself and others this year,” the CDC said in new rules posted Thursday.

The agency posed several questions to ask yourself and your loved ones. If the answer to any of them is “yes,” the agency said, “you should consider making other plans, such as hosting a virtual gathering or delaying your travel.”

The questions are:

  • During the 14 days before your travel, have you or those you are visiting had close contact with people they don’t live with?
  • Do your plans include traveling by bus, train or air, which might make staying six feet apart difficult?
  • Are you traveling with people who don’t live with you?

If you choose to travel or hold a gathering for Thanksgiving, the CDC offers this advice: Check local and state travel restrictions first, get a flu shot before departing, always wear a mask in public, stay at least six feet from anyone who does not live with you, and wash your hands and use hand sanitizer often. Avoid touching your mask and face as much as possible. Bring extra face coverings and hand sanitizer and be prepared to delay your travel.

If you will be a Thanksgiving guest, the CDC recommends, bring your own food, drinks, plates, cups and utensils, stay away from food preparation areas and employ single-use options, like salad dressing and condiment packets and disposable food containers, plates and utensils.

If you’re hosting for the holiday, the CDC said, you’re increasing risk with every person you bring in from outside your household. If you’re not willing to celebrate virtually with other households, the agency said, make the occasion “a small outdoor meal with family and friends who live in your community.”

Besides keeping the guest list as short as possible, the CDC said, hosts should talk in advance with guests “to set expectations for celebrating together.”

In addition: clean and disinfect frequently touched surfaces and items between uses. If you insist on celebrating indoors, “bring in fresh air by opening windows and doors, if possible. You can use a window fan in one of the open windows to blow air out of the window. This will pull fresh air in through the other open windows.”

Other tactics: Have guests bring their own food, drink and utensils or use single-use options, like plastic utensils.

With COVID-19 infection, hospitalization and death numbers rising dramatically nationwide, many individuals and families are rethinking travel plans that seemed reasonable a week or two ago. Others seem to be sticking with their travel itineraries, resulting in widely disparate estimates about how many people will be taking to the road for the holiday.

If you’re still thinking of traveling, consider ways you can lower your risk of infection, whether you fly, take a train or bus, or drive.

The CDC underscores how you might contract the virus if you’re flying by coming in contact with people while queuing up in TSA security lines and waiting in airport terminals. Here are our tips on how to navigate LAX during the COVID-19 pandemic. One easy takeaway: Go nuts with hand sanitizer. Hundreds of stations have been installed throughout terminals.

How are you going to get to the airport? Here’s what you need to know if you plan to take Uber or Lyft, and here’s what to consider if you are taking public transit.

If you’re traveling with children, there are extra precautions to take, like bringing plenty of electronic games to keep them occupied. Teach them how to properly wear a mask. Here are more tips for traveling with kids.

Car travel might lower your risk of exposure. You still have to stop for gas and bathroom breaks, but you can pack a cooler with drinks and snacks to keep rest stops to a minimum. Here are more tips on keeping yourself safe while hitting the road.

If your destination involves staying at a vacation rental, check out our guide to best practices when you get there.

Need to stay at a hotel or motel? Try these pandemic tactics.

What Airbnb and VRBO’s “flexible cancellation policies” actually mean.

The American Automobile Assn., drawing upon forecasts made in mid-October, predicted up to 50 million Americans would travel for this Thanksgiving, mostly by car — a relatively modest drop from 55 million in 2019.

However, the association said in a release last week: “As the holiday approaches and Americans monitor the public health landscape, including rising COVID-19 positive case numbers, renewed quarantine restrictions and the Centers for Disease Control and Prevention’s travel health notices, AAA expects the actual number of holiday travelers will be even lower.”

The AAA is also forecasting that those who travel “are likely to drive shorter distances and reduce the number of days they are away.” Travel by automobile, the AAA said, “is projected to fall 4.3%, to 47.8 million travelers and account for 95% of all holiday travel.”





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U.S. Travel: More Federal Support Needed as Enormity of 2020 Wreckage Becomes Clear


Spending on U.S. business travel in 2020 totaled $103.2 billion, down 70 percent year over year, according to a new Tourism Economics analysis released Wednesday by the U.S. Travel Association. The devastation wreaked on the travel industry by the Covid-19 pandemic shows the continuing need for U.S. federal government aid to suppliers, according to the association. 

Total U.S. travel spending in 2020, including inbound international travel, dipped 42 percent year over year to $680.3 billion, according to U.S. Travel, and 3 million jobs directly supported by the travel industry were lost last year, a 34 percent decline. 

While the U.S. has ramped up Covid-19 vaccinations and several U.S. carriers have reported an uptick in leisure sales in March, “it is still unclear when travel demand will be able to fully rebound on its own,” said U.S. Travel president and CEO Roger Dow said in a statement. “With the travel industry suffering such a disproportionate share of losses, policymakers need to understand that a nationwide economic recovery effectively hinges on a travel recovery.”

To that end, U.S. Travel said hundreds of travel industry representatives held virtual meetings with members of Congress as part of the group’s “Destination Capitol Hill” event to lobby for more aid and additional legislation to help stabilize the industry and spark recovery.

Specifically, U.S. Travel is pushing for an extension of the deadline for applications for the Paycheck Protection Program from March 31 to May 31, with an additional 30 days after that for the U.S. Small Business Administration to process those applications. “The PPP is set to expire in just two weeks, yet the economic effects of the pandemic will continue to harm the industry far beyond that point,” said U.S. Travel executive vice president of public affairs and policy Tori Emerson Barnes in a statement.

The group also is calling for passage of the Hospitality and Commerce Job Recovery Act, introduced in Congress Feb. 25, which among other offerings would provide a tax credit for the cost of hosting a business meeting.



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Condor Announces 2020 Year End Results Toronto Stock Exchange:CPI


CALGARY, Alberta, March 17, 2021 (GLOBE NEWSWIRE) — Condor Petroleum Inc. (“Condor” or the “Company”) (TSX: CPI), a Canadian based oil and gas company focused on exploration and production activities in Turkey and Kazakhstan, is pleased to announce the release of its Consolidated Financial Statements for the year ended December 31, 2020, together with the related Management’s Discussion and Analysis. These documents will be made available under Condor’s profile on SEDAR at www.sedar.com and on the Condor website at www.condorpetroleum.com. Readers are invited to review the latest corporate presentation available on the Condor website. All financial amounts in this news release are presented in Canadian dollars, unless otherwise stated.

Highlights

  • The sale of the Shoba and Taskuduk production contracts and associated field equipment was completed in the fourth quarter of 2020. Following the receipt of a portion of the sale proceeds in the first quarter of 2020, Condor fully repaid its non-revolving credit facility (“Credit Facility”) and the Company no longer has any debt.
  • Despite the ongoing novel coronavirus (“COVID-19”) pandemic, discussions continue with the Government of Uzbekistan for the Company to secure an agreement to operate five producing gas fields and associated gathering pipelines and gas treatment infrastructure. In parallel, the Company is pursuing a contract for exploration acreage adjacent to existing producing gas fields.
  • In February 2020, the Company received the 630 day extension to the Zharkamys West 1 exploration contract (“Zharkamys Contract”) in Kazakhstan. Due to COVID-19 related operational delays, an additional contract extension period is being pursued.
  • The Company is in discussions with potential farm-in partners to drill at the Company’s wholly owned Zharkamys West 1 territory in Kazakhstan.
  • The Company has taken a number of measures to protect the safety and health of its personnel, contractors and suppliers during the COVID-19 pandemic and is well positioned for the challenges of the current business environment, with a cash position of $12.3 million as of December 31, 2020 and no debt.
  • The Company has matured two new infill drilling locations for a potential 2021 program to increase production rates in Turkey. Additional workover candidates are also being reviewed.
  • For continuing operations, production decreased to an average of 171 boepd for the year ended December 31, 2020 from 266 boepd in 2019, sales decreased to $2.8 million for 2020 from $5.2 million in 2019 and the net loss decreased to $2.1 million for 2020 from $10.1 million in 2019.

Shoba and Taskuduk Sale

The Company entered into a binding agreement to sell its 100% interests in the Shoba production contract, Taskuduk production contract and associated field equipment for total proceeds of USD 24.6 million (“Shoba Sale”) in the third quarter of 2019. The transaction required various consents and confirmations from the Government of Kazakhstan and, although delayed due to various COVID-19 travel restrictions, the Shoba Sale was completed on September 9, 2020 and all proceeds have been received.

Following the execution of the Shoba Sale agreement, as of September 30, 2019 the related Shoba and Taskuduk net assets and liabilities were reclassified to assets and liabilities held for sale and the respective results of operations are presented as discontinued operations for all current and prior periods throughout this news release. For further information relating to discontinued operations, please refer to the Company’s Financial Statements.

Production Contract Negotiations with the Government of Uzbekistan

Despite the COVID-19 pandemic and resulting travel restrictions and meeting delays, discussions continued with various Ministries of the Government of Uzbekistan for the Company to secure an agreement to operate five producing gas fields and associated gathering pipelines and gas treatment infrastructure. The Company submitted and presented a detailed feasibility study and economic analysis for the five producing gas fields to the Government of Uzbekistan and an independent reserves volume evaluation has been completed. An environmental baseline study is currently being prepared by an independent contractor. In parallel, the Company is also pursuing the possibility of acquiring exploration acreage adjacent to existing producing gas fields.

If executed, the production contract is expected to include five producing gas fields, associated gathering pipelines, and gas treatment infrastructure. The fiscal and operating terms expected to be defined in the production contract include royalty rates, cost recovery, allocation of profits, gas marketing and pricing, government participation, governance and steering committee structures, baseline production levels and reimbursement methodology.

Zharkamys Contract

On February 27, 2020, the Company received the 630 day extension to the Zharkamys Contract from the Government of Kazakhstan and holds a 100% working interest in the contract area. Although the work commitments for 2020 included drilling two exploration wells, the Government of Kazakhstan approved the deferral of these work commitments until 2021 due to the impact of COVID-19 on travel and operations. A further contract extension period is also being pursued given the various COVID-19 related delays and restrictions. The contractual work commitments for 2021 are $4.5 million and are comprised mainly of drilling three exploration wells. The Company is also in discussions with potential farm-in partners to drill a multi-well program at Zharkamys.

Turkey operations

The Company produces natural gas and associated condensate in Turkey. Production decreased to an average of 171 boepd for the year ended December 31, 2020 from 266 boepd in 2019 due mainly to a combination of higher than forecast production rate declines and 42 days of restricted production during the second quarter of 2020 due to a compressor failure at the processing facility. Four workovers were performed to partially mitigate the production declines. The Company has matured two new infill drilling locations for a potential 2021 program to increase production rates. Additional workover candidates are also being reviewed.

The Company received an operating netback1 on sales in Turkey of $0.7 million or $11.54 per boe for the year ended December 31, 2020 as compared to $2.9 million or $30.84 per boe in 2019 due mainly to decreased gas production, sales volumes, and realized gas prices. Cash used in continuing operations increased to $6.7 million for the year ended December 31, 2020 versus $3.6 million for the same period in 2019.

Subsurface characterization continued on the Yakamoz sub-thrust fold prospect that included reprocessing seismic data and incorporating additional 2D seismic information into a revised geological model. These efforts identified up-dip targets in both the proven Miocene and Upper Eocene reservoirs, in addition to the deeper Middle to lower Eocene reservoirs, which have not yet been tested. The Company previously drilled Yakamoz 1 and encountered numerous gas shows while drilling. A successful Yakamoz 1 side-track well would be tied 2km into the existing Poyraz Ridge gas plant for processing and onward sales. The Company is pursuing a farm-in partner for this prospect.

Proved reserves decreased 21% to 272 Mboe as of December 31, 2020 from 344 Mboe as of December 31, 2019 and Proved plus Probable reserves decreased 54% to 335 Mboe as of December 31, 2020 compared to 732 Mboe as of December 31, 2019. The decrease in reserves is due mainly to: higher than forecast production rate declines at Poyraz Ridge resulting from the highly compartmentalized nature of this field; the existing well inventory is unable to drain the reservoir effectively despite workover efforts intended to increase production rates; the currently planned infill and workover programs are not sufficient to produce the gas volumes of prior year reserve estimates; the lower realized gas prices; and the devaluation of the Turkish Lira compared to USD and Canadian dollar.

Selected Financial Results of Continuing Operations

As at, and for the year ended December 31 ($000’s except per share amounts) 2020   2019   2018  
Natural gas and condensate sales 2,780   5,169   11,675  
Total revenue 2,429   4,522   10,268  
Cash from (used in) continuing operations (6,666 ) (3,570 ) 3,638  
Net loss from continuing operations (14,936 ) (13,870 ) (11,658 )
Net loss from continuing operations per share (basic and diluted) (0.34 ) (0.31 ) (0.26 )
Total assets 21,503   45,485   55,455  
Total non-current financial liabilities     7,675  
             

Sales and operating netback1

For the year ended December 31

  2020 2019
($000’s) Gas   Condensate   Total   Gas   Condensate   Total  
Sales 2,707   73   2,780   5,006   163   5,169  
Royalties (342 ) (9 ) (351 ) (625 ) (22 ) (647 )
Production costs (1,193 ) (14 ) (1,207 ) (1,204 ) (21 ) (1,225 )
Transportation and selling (527 ) (16 ) (543 ) (410 ) (35 ) (445 )
Operating netback1 645   34   679   2,767   85   2,852  
                         
($/boe)            
Sales 46.79   74.04   47.25   55.16   93.46   55.88  
Royalties (5.91 ) (9.13 ) (5.97 ) (6.89 ) (12.61 ) (6.99 )
Production costs (20.62 ) (14.20 ) (20.51 ) (13.27 ) (12.04 ) (13.24 )
Transportation and selling (9.11 ) (16.23 ) (9.23 ) (4.52 ) (20.07 ) (4.81 )
Operating netback1 11.15   34.48   11.54   30.48   48.74   30.84  
             
Sales volume (boe) 57,851   986   58,837   90,751   1,744   92,495  
                         
  1. Operating netback is a non-GAAP measure and is a term with no standardized meaning as prescribed by GAAP and may not be comparable with similar measures presented by other issuers. See “Non-GAAP Financial Measures” in this news release. The calculation of operating netback is aligned with the definition found in the Canadian Oil and Gas Evaluation Handbook.

COVID-19 Pandemic

In March 2020, the World Health Organization declared the COVID-19 outbreak to be a pandemic. Responses to the spread of COVID-19 have resulted in various disruptions to business operations and an increase in economic uncertainty, with more volatile commodity prices and currency exchange rates. The Company is well positioned for the challenges of the current business environment, with a cash position of $12.3 million as of December 31, 2020 and no debt.

Non-GAAP Financial Measures

The Company refers to “operating netback” in this news release, a term with no standardized meaning as prescribed by GAAP and which may not be comparable with similar measures presented by other issuers. This additional information should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. Operating netback is calculated as sales less royalties, production costs and transportation and selling on a dollar basis and divided by the sales volume for the period on a per barrel of oil equivalent basis. The reconciliation of this non-GAAP measure is presented in the “Financial Results” section of this news release. This non-GAAP measure is commonly used in the oil and gas industry to assist in measuring operating performance against prior periods on a comparable basis and has been presented in order to provide an additional measure to analyze the Company’s sales on a per barrel of oil equivalent basis and ability to generate funds.

Reserves Advisory

This news release includes information pertaining to the Evaluation of Crude Oil and Natural Gas Reserves as of December 31, 2020 and as of December 31, 2019 prepared by independent reserves evaluator McDaniel & Associates Consultants Ltd. (“McDaniel”). The reports were prepared by qualified reserves evaluators in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and is based on McDaniel pricing effective December 31, 2020 and 2019, respectively. Additional reserve information as required under NI 51-101 is included in the Company’s Annual Information Form filed on SEDAR.

Statements relating to reserves are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated. The reserve estimates described herein are estimates only. The actual reserves may be greater or less than those calculated. Estimates with respect to reserves that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and analogy to similar types of reserves, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result in variations, which may be material, in the estimated reserves.

References herein to barrels of oil equivalent (“boe”) are derived by converting gas to oil in the ratio of six thousand standard cubic feet (“Mscf”) of gas to one barrel of oil based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mscf to 1 barrel, utilizing a conversion ratio at 6 Mscf to 1 barrel may be misleading as an indication of value, particularly if used in isolation.

“Proved” reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.

“Probable” reserves are those additional reserves that are less certain to be recovered than Proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable reserves.

Forward-Looking Statements

Certain statements in this news release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as “anticipate”, “appear”, “believe”, “intend”, “expect”, “plan”, “estimate”, “budget”, “outlook”, “scheduled”, “may”, “will”, “should”, “could”, “would”, “in the process of” or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning: the timing and ability to increase natural gas production and realize commercial gas flow rates for the lower permeability reservoirs; the timing and ability to execute a production contract with the Government of Uzbekistan under favorable terms, or at all, the fields and exploration areas to be included and the terms and conditions including but not limited to royalty rates, cost recovery, profit allocation, gas marketing and pricing, government participation, governance, baseline production levels and reimbursement methodology; the timing and ability to drill new wells and the ability of the drilled wells to become producing wells; projections and timing with respect to oil, natural gas and condensate production; expected markets, prices costs and operating netbacks for future oil, gas and condensate sales; the timing and ability to obtain various approvals and conduct the Company’s planned exploration and development activities; the timing and ability to access oil and gas pipelines; the timing and ability to access domestic and export sales markets; anticipated capital expenditures; forecasted capital and operating budgets and cash flows; anticipated working capital; sources and availability of financing for potential budgeting shortfalls; the timing and ability to obtain future funding on favorable terms, if at all; general business strategies and objectives; the timing and ability to obtain exploration contract, production contract and operating license extensions; the timing and ability to obtain an extension to the Zharkamys Contract due to COVID-19 restrictions; the timing and ability to obtain a farm-in partner for the Zharkamys Contract; the timing and ability to obtain a farm-in partner for the Yakamoz prospect; the timing and ability to tie the Yakamoz field into the Company’s existing gas plant; the potential for additional contractual work commitments; the ability to meet and fund the contractual work commitments; the satisfaction of the work commitments; and treatment under governmental regulatory regimes and tax laws.

This news release also includes forward-looking information regarding COVID-19 including, but not limited to: travel restrictions including shelter in place orders, curfews and lockdowns which may impact the timing and ability of Company personnel, suppliers and contractors to travel internationally, travel domestically and to access or deliver services, goods and equipment to the fields of operation; the risk of shutting in or reducing production due to travel restrictions, Government orders, crew illness, and the availability of goods, works and essential services for the fields of operations; and decreases in the demand for oil and gas; decreases in natural gas, condensate and crude oil prices.

By its very nature, such forward-looking information requires Condor to make assumptions that may not materialize or that may not be accurate. Forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such risks and uncertainties include, but are not limited to: regulatory changes; the timing of regulatory approvals; the risk that actual minimum work programs will exceed the initially estimated amounts; the results of exploration and development drilling and related activities; imprecision of reserves estimates and ultimate recovery of reserves; historical production and testing rates may not be indicative of future production rates, capabilities or ultimate recovery; the historical composition and quality of oil and gas may not be indicative of future composition and quality; general economic, market and business conditions; industry capacity; uncertainty related to marketing and transportation; competitive action by other companies; fluctuations in oil and natural gas prices; the effects of weather and climate conditions; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals and the possibility that government policies or laws may change or government approvals may be delayed or withheld; changes in environmental and other regulations; risks associated with oil and gas operations, both domestic and international; international political events; and other factors, many of which are beyond the control of Condor. Capital expenditures may be affected by cost pressures associated with new capital projects, including labor and material supply, project management, drilling rig rates and availability, and seismic costs.

These risk factors are discussed in greater detail in filings made by Condor with Canadian securities regulatory authorities including the Company’s Annual Information Form, which may be accessed through the SEDAR website (www.sedar.com).

Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. The forward-looking information contained in this news release are made as of the date of this news release and, except as required by applicable law, Condor does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

Abbreviations

The following is a summary of abbreviations used in this news release:

USD
boe
boepd
Mscf
      United States dollars
Barrels of oil equivalent *
Barrels of oil equivalent per day
Thousand standard cubic feet
     

* Barrels of oil equivalent (“boe”) are derived by converting gas to oil in the ratio of six thousand standard cubic feet (“Mscf”) of gas to one barrel of oil based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mscf to 1 barrel, utilizing a conversion ratio at 6 Mscf to 1 barrel may be misleading as an indication of value, particularly if used in isolation.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

For further information, please contact Don Streu, President and CEO or Sandy Quilty, Vice President of Finance and CFO at 403-201-9694.



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Now’s the Time to Start Planning That Summer Escape to the Great Outdoors, March 2020


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