Condor Energy has launched a comprehensive market and commercialisation study for its 1 trillion cubic feet Piedra Redonda gas discovery offshore Peru, aiming to chart a clear path toward development and partnerships.
- Initiation of market and commercialisation study for Piedra Redonda gas field
- Appointment of OPC consultancy to evaluate development and market options
- Study covers infrastructure, regulatory framework, and economic feasibility
- 1 Tcf contingent gas resource confirmed by independent assessment
- Study results to guide development strategy and partner engagement
A Strategic Step Forward
Condor Energy Limited (ASX, CND) has taken a significant stride in advancing its Piedra Redonda gas discovery located offshore in Peru’s Tumbes Basin. The company has initiated a detailed market and commercialisation study, appointing OPC, a respected international energy consultancy, to assess the best pathways to develop and monetise the field’s substantial gas resources.
This move follows an independent resource assessment earlier this year by RISC Advisory, which confirmed a contingent resource estimate of approximately 1 trillion cubic feet (Tcf) of recoverable gas. The study aims to evaluate a range of development concepts, from gas-to-shore and power generation to LNG and compressed natural gas options, reflecting the complexity and opportunity inherent in the project.
Comprehensive Scope to Unlock Value
The study’s first phase is already underway and focuses on multiple critical areas, assessing domestic and export market demand, reviewing existing infrastructure and investment needs, and navigating the regulatory landscape in Peru. This holistic approach is designed to identify the most commercially viable routes to bring Piedra Redonda’s gas to market, whether through local power generation or regional exports to countries like Ecuador.
Phase two, contingent on the initial findings, will delve into commercial feasibility, economic modelling, risk analysis, and strategic recommendations. These insights will be crucial for Condor as it refines its development plans and engages with potential partners to share the risks and rewards of bringing this resource into production.
Positioning for Growth in a Promising Basin
The Piedra Redonda discovery sits within the under-explored Tumbes Basin, where Condor holds an 80% stake under a Technical Evaluation Agreement with Perupetro. The basin’s proximity to existing infrastructure and high-value markets enhances the project’s attractiveness. Moreover, the broader area holds significant prospective oil resources, underscoring the basin’s potential as a future energy hub.
Condor’s Managing Director, Serge Hayon, highlighted the importance of this study as a milestone in transitioning Piedra Redonda from a promising discovery to a commercially viable development. The company’s strategy hinges on leveraging OPC’s expertise to prioritise development options and strengthen its position in ongoing partner discussions.
With a current market capitalisation of around $15.4 million and a cash position of $3.2 million as of March 2025, Condor is navigating the early but critical phases of project maturation. The outcomes of this study will likely influence investor sentiment and the company’s ability to attract strategic partners.
Bottom Line?
The study’s findings will be pivotal in shaping Piedra Redonda’s future, potentially unlocking value for Condor and its stakeholders.
Questions in the middle?
- What development option will OPC recommend as the most commercially viable for Piedra Redonda?
- How will regional market dynamics, especially in Peru and Ecuador, influence export opportunities?
- What timeline and investment scale will Condor envisage following the study’s completion?