Condor Energy has agreed to acquire Jaguar Exploration’s 20% stake in the TEA 86 offshore Peru project, moving to full ownership. The deal, structured through performance shares, aims to simplify equity and support licence conversion and future partnerships.
- Condor to hold 100% interest in TEA 86 offshore Peru
- Acquisition consideration via performance shares contingent on licence conversion
- Simplifies equity structure for partnering and development
- Strengthens control over Piedra Redonda gas field and multi-billion barrel oil prospects
- Completion subject to Perupetro and shareholder approvals
Condor Moves to Full Ownership of TEA 86 Offshore Peru
Condor Energy Limited (ASX:CND) has executed a binding term sheet to acquire the remaining 20% interest in the Technical Evaluation Agreement (TEA 86) offshore Peru from Jaguar Exploration Inc. This transaction will increase Condor’s stake from 80% to 100%, consolidating its control over the entire Tumbes Basin offshore acreage, subject to regulatory approvals from Perupetro and shareholder approval for the issue of performance shares.
The consideration for the acquisition is structured as 140,127,490 performance shares, which will convert into ordinary shares on a one-for-one basis only upon successful conversion of TEA 86 into a Licence Contract. This arrangement aligns vendor remuneration with project progression and regulatory milestones, with no upfront cash payment involved.
Strategic Benefits and Simplified Equity Structure
Condor’s Managing Director Serge Hayon described the acquisition as a key step to simplify the company’s ownership structure and provide full control as it advances licence conversion, partner engagement, and exploration and development activities. The consolidation is expected to streamline equity allocation for future farm-in partners and enhance flexibility in commercial negotiations.
By holding 100% of TEA 86, Condor strengthens its position across the Tumbes Basin, which includes the shallow water Piedra Redonda gas field with contingent resources estimated at 1 trillion cubic feet of natural gas, alongside a multi-billion barrel oil prospect portfolio. This portfolio includes key prospects such as Bonito, Raya, Salmon, Caballa, Tiburon, and the recently added Raya West prospect, which has increased the company’s total best estimate prospective oil resources to over 3.3 billion barrels gross.
Regulatory Approvals and Next Steps
Following the agreement, Condor has submitted applications to Perupetro for approval of the assignment and necessary addenda to reflect its full ownership of TEA 86. The company will also prepare a Notice of Meeting to seek shareholder approval for the issue of performance shares. Completion of the acquisition is expected before the end of 2026, contingent on these approvals.
The conversion of TEA 86 into a Licence Contract requires Condor to meet technical and financial criteria set by Perupetro, either independently or with partners. This milestone is critical for unlocking the full commercial potential of the asset and triggering the conversion of performance shares into ordinary shares.
Positioning for Growth in Peru’s Underexplored Offshore Basin
The Tumbes Basin remains one of South America’s less explored offshore regions, with Condor’s portfolio showing significant resource potential. Recent independent assessments and internal evaluations have highlighted the basin’s prospective resources, supporting the company’s strategy to advance exploration and commercialisation. This acquisition follows Condor’s recent identification of extensive deepwater reservoirs across TEA 86, which has helped reduce exploration risk and accelerate plans for drilling and licence conversion.
Condor’s consolidation of TEA 86 ownership aligns with its broader growth strategy in Peru, enhancing its ability to negotiate with potential farm-in and gas commercialisation partners. The company’s focus on low-capex, offtake-led development strategies aims to deliver near-term cash flow from its gas discoveries while progressing its multi-billion barrel oil prospects.
This transaction builds on Condor’s ongoing efforts to advance its Peru assets, including the recent identification of vast deepwater reservoirs and the expansion of its prospective oil resource base with the Raya West prospect addition.
Bottom Line?
Condor’s full ownership of TEA 86 simplifies its offshore Peru portfolio, but successful licence conversion and regulatory approvals remain critical milestones to watch.
Questions in the middle?
- How will Condor’s full ownership impact its ability to attract farm-in partners for TEA 86?
- What are the key technical and financial hurdles for converting TEA 86 into a Licence Contract?
- How might recent resource upgrades influence Condor’s exploration and development timelines?