Condor Energy Expands Offshore Peru Portfolio Beyond 3.3 Billion Barrels and Secures Full TEA 86 Ownership

Greater Raya Prospect Surpasses 900 Million Barrels

Condor Energy Ltd (ASX:CND) has significantly expanded its offshore Peru exploration footprint with the identification of the Raya West prospect, adding 341 million barrels (2U) gross unrisked prospective resources to the existing Raya area. This extension pushes the Greater Raya Prospect to over 900 million barrels (2U) gross unrisked, marking it as a major exploration target within the TEA 86 acreage in the Tumbes Basin.

The combined unrisked prospective resources across six high-graded prospects within TEA 86 now exceed 3.3 billion barrels (2U) gross, underpinning Condor’s position as a key player in this underexplored basin. The Raya West prospect was delineated through detailed seismic interpretation and volumetric analysis, revealing multiple stacked AVO anomalies consistent with thick hydrocarbon-bearing reservoir sands. This technical maturity bolsters the prospect’s potential and attractiveness to partners ahead of drilling campaigns.

These findings build on earlier resource assessments and technical work, including 1D basin modelling, which confirmed hydrocarbon generation and timing consistent with mapped prospects. The accelerated completion of the Technical Evaluation Agreement (TEA) work programme ahead of schedule further supports Condor’s progression toward Exploration Licence Contract conversion and strategic partnering opportunities. This progress was highlighted in the company’s recent update, which detailed the multi-billion barrel potential and technical confidence across the portfolio TEA work programme completed early.

Deepwater Reservoir Systems Reduce Exploration Risk

Importantly, Condor has identified large-scale deepwater fan reservoir systems across TEA 86, significantly mitigating a key exploration risk related to reservoir presence and distribution. These basin-scale sand-rich turbidite systems, interpreted from seismic attribute analysis and AVO interpretation, are comparable to major discoveries in analogous basins offshore Namibia, Guyana, Suriname, and Angola.

The interpreted depositional fairways directly overlie mature source rocks and extend across key prospect areas, supporting the potential for large hydrocarbon accumulations. The geological framework now mirrors that of the Orange Basin in Namibia, where similar basin floor fan reservoirs host the Venus discovery, reinforcing the significance of Condor’s findings. This reservoir confirmation strengthens the case for advancing to exploration drilling and licence conversion Large-scale deepwater sand-rich reservoirs.

Condor Moves to 100% Ownership of TEA 86

Following the quarter, Condor executed a binding agreement to acquire the remaining 20% interest in TEA 86 from Jaguar Exploration Inc., elevating its ownership to 100%. The deal is structured through performance shares that convert upon successful licence conversion, aligning vendor consideration with project milestones and shareholder value creation. No upfront cash payment is required.

This consolidation simplifies the asset’s ownership structure, granting Condor full control and greater flexibility in future farm-in, exploration, and development arrangements. It also strengthens Condor’s position across both the multi-billion barrel exploration portfolio and the Piedra Redonda gas discovery, enhancing competitiveness in upcoming partnering processes. Regulatory and shareholder approvals are pending to finalise the acquisition Condor to hold 100% interest.

Advancing Piedra Redonda Gas Commercialisation

Alongside its oil exploration efforts, Condor continues to progress commercialisation pathways for the Piedra Redonda gas discovery, which contains a best estimate contingent resource of 1 trillion cubic feet (Tcf) of natural gas. The company is actively engaging with potential offtake partners to negotiate Gas Sales and Purchase Agreements (GSPAs), aiming to establish a near-term cash flow opportunity that complements its balanced strategy of exploration and development.

The gas resource offers a low-capex development pathway, supporting Condor’s broader value creation plan as it advances toward exploration drilling and licence contract conversion.

Financial Position and Next Steps

Condor reported operating and investing cash outflows during the quarter, with a closing cash balance of AUD 1.656 million and estimated funding to cover just over six quarters at current expenditure levels. The company’s focus remains on completing the licence conversion application, progressing strategic partnerships, and preparing for exploration drilling within TEA 86.

As Condor moves from technical evaluation to active exploration, the market will be watching closely how regulatory approvals unfold and whether farm-in or joint venture agreements materialise to share the risks and costs of drilling. The expanded resource base and reservoir confirmation provide a compelling foundation, but the ultimate test will come with the drilling results that can validate the multi-billion barrel potential.