Condor Announces Kumli Field Extension With Successful K-42 Pilot Well

• K-42 vertical pilot well successfully reached 2,462 metres, confirming a 2.3 km northeast extension of prolific carbonate reservoirs.
• Wireline logs validated geological models, showing 26.5 metres of net reservoir across six intervals with 15% average porosity and a 22% thicker net pay interval compared to prior horizontal wells.
• Second drilling rig spudded K-44 horizontal well on the same pad, initiating the company's first pad-drilling operation in Uzbekistan to capture operational synergies.
• Production hit a new record of 15,283 boepd, representing a 41% year-to-date increase despite a 20% natural decline rate in legacy fields.
• Company reaffirmed 2026 exit production guidance of 18,000 to 20,000 boepd.
• Future program includes four additional horizontal wells (K-48 to K-51) targeting a deeper nine-meter net gas pay section.
• Accounting structure remains 100% PEC Project recognition with 49% non-controlling interest and 51% attributable to Condor.

• The news is operationally positive but largely telegraphed. The K-42 pilot success, pad-drilling initiation, and reaffirmation of the 18,000-20,000 boepd exit guidance confirm the company's geological model and execution pace. However, the stock's +46.6% run-up into the print implies these milestones were already priced in. The material impact is limited to maintaining momentum rather than re-rating the business. Asymmetric risk is skewed to the downside if drilling slows, compression/LNG timelines slip, or commodity prices compress, given the high valuation and negative FCF.

Condor Energies Inc. is a small-cap exploration and production company focused on Central Asia, specifically natural gas and condensate development in Uzbekistan (PEC Project, 51% working interest) and an energy transition portfolio in Kazakhstan (modular LNG liquefaction facility and critical minerals licenses for lithium and copper). The company recently divested Turkish assets to concentrate capital on its core Central Asian operations and is executing a multi-rig drilling campaign aimed at materially increasing near-term production and reserves.