Condor Energy Ltd has raised A$3 million through a well-supported placement to advance its exploration and commercialisation efforts in the Tumbes Basin offshore Peru, focusing on the promising Piedra Redonda gas discovery.
- A$3 million placement backed by institutional and sophisticated investors
- Funds to support technical work and resource assessments in Tumbes Basin TEA
- Focus on commercialising Piedra Redonda gas discovery with 1 Tcf 2C contingent resource
- Placement shares issued at $0.026, a 15.9% discount to VWAP
- Engagement with strategic partners to accelerate drilling and development
Strong Capital Injection to Fuel Exploration
Condor Energy Ltd (ASX:CND) has successfully raised A$3 million through a placement of new fully paid ordinary shares, providing the company with a robust cash position to expedite its high-impact exploration and commercialisation workplan offshore Peru. The placement attracted strong support from both new and existing institutional, professional, and sophisticated investors, underscoring market confidence in Condor's strategic direction.
Targeting the Tumbes Basin’s Untapped Potential
The funds will primarily be directed towards advancing Condor's Technical Evaluation Agreement (TEA) in the Tumbes Basin, a largely under-explored offshore block covering nearly 4,858 square kilometres. This area is notable for its proximity to historic and producing oil and gas fields, as well as the shallow water Piedra Redonda gas field, which holds a recently upgraded Best Estimate (2C) contingent resource of 1 trillion cubic feet (Tcf) of natural gas, with 802 billion cubic feet net to Condor.
Condor plans to leverage its extensive 3D and 2D seismic datasets, spanning over 3,800 square kilometres and 7,000 kilometres respectively, to mature a portfolio of high-priority prospects and leads. This technical work will be complemented by detailed resource assessments to refine the potential of identified oil prospects within the TEA.
Advancing Commercialisation of Piedra Redonda
Beyond exploration, a significant portion of the capital will support the commercialisation pathway for the Piedra Redonda gas discovery. This includes subsurface studies and development concept evaluations aimed at unlocking the field’s value. Condor’s Managing Director, Serge Hayon, highlighted the early-stage nature of the basin’s potential, emphasizing the importance of the recent resource upgrade as a milestone in realising a world-class oil and gas province.
Strategic Partnerships and Market Positioning
Condor is actively engaging with potential strategic partners to showcase the Tumbes Basin’s prospectivity and the advancements at Piedra Redonda. These discussions aim to accelerate exploration drilling and fast-track commercialisation efforts, which could significantly enhance the company’s asset value and market standing.
The placement shares were issued at $0.026 each, representing a 15.9% discount to the 15-day volume-weighted average price, and will be settled by the end of January 2025. Euroz Hartleys Limited acted as sole lead manager, receiving a 6% cash fee and broker options as part of the arrangement.
Looking Ahead
With 80% ownership of the TEA alongside partner Jaguar Exploration’s 20%, Condor is well positioned to capitalise on the Tumbes Basin’s promising geology. The company’s focused investment in seismic interpretation, resource evaluation, and commercialisation planning sets the stage for potentially transformative developments in the coming months.
Bottom Line?
Condor’s fresh capital injection primes it for a pivotal phase in unlocking Peru’s offshore gas potential.
Questions in the middle?
- What timelines are anticipated for drilling activities following the technical evaluations?
- How might strategic partnerships influence the pace and scale of commercialisation efforts?
- What regulatory or market risks could impact the development of the Piedra Redonda gas field?