Condor Energy Advances Offshore Peru Licence Contract with Full TEA 86 Ownership

Licence Contract Application Marks Major Milestone

Condor Energy Ltd (ASX:CND) has taken a decisive step toward unlocking the potential of its offshore Peru acreage by submitting an application to convert its Technical Evaluation Agreement (TEA) 86 in the Tumbes Basin into a formal Licence Contract. This move, pending approval by Perupetro S.A., the Peruvian oil and gas regulator, will establish a regulatory framework for exploration drilling, development, and commercialisation activities, notably around the Piedra Redonda gas field.

The transition to a Licence Contract is not only a regulatory milestone but also a strategic one. Condor now holds 100% interest in TEA 86 following the transfer of Jaguar Exploration Inc.’s 20% stake, a consolidation that amplifies its net prospective resources to over 3.3 billion barrels of oil (2U) and contingent gas resources of 1 trillion cubic feet (2C). This full ownership enhances Condor’s leverage in advancing exploration and commercial discussions.

Expanded Resource Base and Technical Work Completed

The company’s technical evaluation programme under the TEA was completed ahead of schedule, integrating advanced seismic interpretation, geological modelling, and basin evaluation. This comprehensive work has sharpened understanding of reservoir distribution and petroleum systems across the basin, resulting in the identification of more than 20 leads and prospects. High-graded prospects now boast a combined best estimate unrisked prospective resource exceeding 3.3 billion barrels of oil, including the newly internalised Raya West prospect.

Alongside the oil potential, the shallow water Piedra Redonda gas discovery stands out with a best estimate contingent resource of 1 Tcf of natural gas, offering a tangible pathway toward future development and cash flow generation. The proximity of this gas field to shore and strong regional demand underpin its commercial appeal.

Strategic Consolidation and Shareholder Approvals Pending

The acquisition of Jaguar’s 20% interest was structured through performance shares, contingent on shareholder approval and successful conversion of TEA 86 into a Licence Contract. Condor is seeking shareholder endorsement at a General Meeting scheduled for 19 June 2026, a crucial step for formalising full ownership and simplifying the equity structure ahead of future partnerships and project financing.

Consolidating to 100% ownership streamlines decision-making and positions Condor to better negotiate strategic partnerships. The company is actively advancing discussions with industry participants to leverage the multi-billion barrel exploration portfolio and the commercial potential of the Piedra Redonda gas field.

Pathway to Exploration Drilling and Development

With the Licence Contract application underway, Condor is poised to transition from technical evaluation to execution. The Licence Contract phase will provide the long-term tenure and regulatory certainty necessary to support exploration drilling, appraisal, and development planning. Future exploration wells within TEA 86 are anticipated, subject to regulatory approvals and further technical and commercial assessments.

This progression aligns with the company’s recent successful capital raise of A$2.25 million, which is earmarked to support licence conversion and drilling preparations, reinforcing Condor’s commitment to advancing its offshore Peru assets A$2.25 million placement. Meanwhile, the addition of the Raya West prospect has helped push the unrisked prospective resources beyond 3.3 billion barrels, underscoring the scale of the opportunity offshore Peru portfolio expansion.