Condor Energy Raises A$2.25M to Propel Offshore Peru Licence Conversion and Drilling Prep

Capital Injection Targets Licence Conversion and Development

Condor Energy Ltd (ASX:CND) has secured firm commitments to raise A$2.25 million through a placement priced at 1.7 cents per share, representing a roughly 19% discount to recent trading. This capital injection is earmarked to accelerate the conversion of its TEA-86 offshore Peru Technical Evaluation Agreement into a full Exploration/Exploitation Licence Contract, a critical step toward unlocking the asset's commercial potential.

The placement includes attaching options exercisable at 3 cents, expiring in three years, with a shareholder meeting scheduled around 30 June 2026 to approve the second tranche of options. Alpine Capital acted as sole lead manager. Settlement of the first tranche is expected imminently, positioning Condor to transition from technical evaluation to active execution across its portfolio.

Gas Commercialisation and Oil Exploration Advance in Tandem

At the heart of Condor’s portfolio lies the Piedra Redonda Gas Field, containing an independently verified 1 trillion cubic feet (Tcf) of contingent natural gas resources. This discovery offers a near-term development opportunity and complements the broader exploration ambitions offshore Peru. Condor is progressing development planning and commercialisation efforts for Piedra Redonda while simultaneously advancing multiple high-impact oil prospects.

These oil targets have been independently assessed to contain over 3 billion barrels of gross prospective resources, with Condor’s net share exceeding 2.7 billion barrels. The exploration portfolio includes prospects such as Bonito, Raya, Salmon, Caballa, Tiburon, and the internally estimated Raya West. Recent technical work has matured these prospects toward drilling readiness, reflecting a shift from evaluation to execution.

Consolidating Ownership and Streamlining Development

Condor currently holds an 80% interest in TEA-86, with Jaguar Exploration owning the remaining 20%. The company has executed a binding term sheet to acquire Jaguar’s stake, aiming for 100% ownership to simplify equity arrangements and facilitate licence conversion and future partnerships. This consolidation is expected to streamline decision-making and enhance value extraction from the portfolio.

Managing Director Serge Hayon emphasised the significance of the capital raise in supporting multiple value pathways, stating that the company is moving toward the next phase of activity with a focus on execution. Hayon highlighted the dual approach of advancing both the gas field development and the high-impact oil exploration targets, which together underpin Condor’s growth strategy in the Tumbes Basin offshore Peru.

Investor Engagement and Upcoming Catalysts

To discuss these developments and upcoming programs, Serge Hayon will host a live investor webinar on 6 May 2026. This event will provide an opportunity for shareholders and market participants to engage directly with management on the company’s progress and strategic outlook.

With the technical evaluation phase largely complete, Condor’s immediate focus turns to licence conversion, drilling preparation, and commercialisation activities. The upcoming shareholder meeting to approve tranche two options will be a key milestone, alongside ongoing efforts to secure offtake agreements and advance development planning for Piedra Redonda.

Condor’s offshore Peru portfolio, with its substantial resource base and advancing commercialisation plans, exemplifies a company transitioning from exploration to execution, navigating the complexities of licence conversion and development in a competitive energy landscape.

These moves build on recent milestones including the company’s full TEA 86 ownership and completion of the TEA work programme, which collectively underpin the confidence behind this capital raise.

Meanwhile, the identification of deepwater reservoir systems analogous to major global discoveries adds further dimension to the portfolio’s potential as Condor moves toward drilling readiness.