Condor Confirms Multi-Billion Barrel Potential with TEA Work Completion Offshore Peru

TEA Work Programme Delivers Key Technical Milestone

Condor Energy Ltd (ASX:CND) has completed its Technical Evaluation Agreement (TEA-86) work programme offshore Peru ahead of schedule, with the final 1D basin modelling confirming a robust hydrocarbon generation and migration story beneath the Tumbes Basin. This milestone underpins the company's confidence in the multi-billion barrel exploration potential across its acreage and paves the way for the next phase: applying for licence conversion and advancing strategic partnerships.

Managing Director Serge Hayon highlighted that the integrated technical dataset now provides a strong foundation, noting that hydrocarbon generation from the Heath Formation began about 20 million years ago and peaked in alignment with the formation of Condor's mapped prospects. This timing is critical, supporting the effective charge and fill of the identified structures.

Basin Modelling Validates Hydrocarbon Potential

The basin modelling results reinforce that the offshore Tumbes Basin hosts proven and active hydrocarbon sources consistent with known oil and gas fields such as Corvina and Albacora, as well as Condor’s own Piedra Redonda gas discovery. The Heath Formation is identified as the primary oil source rock, having reached maturity in the basin’s deeper parts and generating significant volumes of hydrocarbons over time.

Importantly, the modelling aligns with Condor’s previous interpretation of deepwater depositional systems, which are typically associated with sand-rich reservoirs. This combination of reservoir potential, trap definition, and charge timing significantly strengthens the case for hydrocarbon accumulation within high-quality reservoirs.

Strategic Positioning for Licence Conversion and Partnerships

With the TEA work now complete, Condor is positioned to progress its licence conversion application and advance farm-out discussions. The company’s acreage, covering nearly 4,858 square kilometres offshore Peru, includes multiple prospects with a combined best estimate unrisked 2U prospective resource exceeding 3.3 billion barrels of oil net to Condor, alongside the 1 trillion cubic feet Piedra Redonda gas discovery.

This recent technical milestone follows Condor’s move to secure full ownership of the TEA-86 area, streamlining equity and development efforts, as well as its identification of extensive deepwater reservoirs that reduce exploration risk and support imminent drilling plans. These developments collectively enhance Condor’s strategic position in a basin attracting growing industry interest.

As Condor advances, the market will be watching how quickly licence conversion is granted and how farm-out negotiations unfold, particularly given the scale of prospective resources and the basin’s proven hydrocarbon system. The interplay between near-term gas development at Piedra Redonda and the longer-term oil exploration upside presents an intriguing dynamic for investors and partners alike.