Condor Energies starts drilling program in Uzbekistan

Executive Summary

• Condor Energies Inc. has commenced a multi-well drilling program in Uzbekistan, starting with a vertical well to evaluate carbonate and clastic reservoirs, with completion expected in October 2025.
• The company is planning a 12-well horizontal drilling program with estimated costs of $3.3 million per well (after learning curve) and initial production estimates of 13–20 MMscf/day per well, potentially leading to material reserves growth.
• In Kazakhstan, the first modular LNG facility is on schedule for completion by Q4 2025, with production expected to begin in Q2 2026 at 48,000 gallons/day; two additional units are planned to bring total capacity to ~150,000 gallons/day at a total EPC cost of $70.4 million.

Key Details

• Uzbekistan Drilling Program:
  • First Well: Vertical drilling to ~3,000 meters to evaluate producing carbonate reservoirs and deeper underexploited clastic/basement formations. Completion expected October 2025.
  • Horizontal Wells: Data from the first well will optimize subsequent horizontal wells.
  • Horizontal Well Economics: Estimated initial production of 13–20 MMscf/day per well; cost of $4.2 million (U.S.) to drill and complete; duration of 40–45 days.
  • 12-Well Program: Average estimated cost of $3.3 million (U.S.) per well due to drilling learning curve.
  • Lateral Section: First horizontal well planned with a 1,000-meter lateral section, extendable based on reservoir parameters.
  • Reserves Impact: Horizontal well performance was not included in the 2024 reserves report by McDaniel & Associates; material proved and proved plus probable reserves growth is possible upon obtaining production history.
• Seismic and Target Inventory:
  • Integration of 1,462 sq km of reprocessed 3-D seismic data and 142 sq km of 3-D seismic inversion attributes.
  • Portfolio increased to 18 targets (undrilled attic gas accumulations or newly identified structures), potentially extending the drilling program beyond 2026.
  • Investigating availability of a second drilling rig to accelerate gas production.
• Uzbekistan Compression Project:
  • Engineering study underway for field compression to mitigate increasing sales gas pipeline pressures.
  • Installation expected in 2026.
  • Estimated base production increase of 25–55%.
  • Preliminary cost range: $12 million to $20 million (U.S.).
• Uzbekistan Production:
  • Q3 2025 (through Sept 7) average production: 10,284 boepd.
  • Q2 2025 average production: 10,258 boepd.
  • Near-term growth impacted by pipeline pressures and workovers focused on data collection; growth expected to resume with new drilling and compression.
• Kazakhstan LNG Project:
  • First Facility: Fabrication on schedule for completion by end of Q4 2025; shipping to Saryozek for assembly/commissioning. Construction of storage tanks and transport trailers commenced.
  • Production Start: Q2 2026 at 48,000 gallons of LNG per day.
  • Financing: Finalizing offtaker agreements and advancing financing solutions.
  • Expansion: Two additional liquefaction units planned to increase Saryozek production to ~150,000 gallons per day.
  • Total EPC Cost: $70.4 million (U.S.) for the additional units.
  • Future Planning: Planning for additional LNG facilities at Kuryk and Aktobe continuing.
• PEC Project Structure:
  • Condor operates under a production enhancement services contract for an integrated cluster of eight natural gas-condensate fields.
  • Condor recognizes 100% of volumes/revenues/expenses in financial statements, allocating 49% of comprehensive income/loss to non-controlling interest.
  • Metrics disclosed (production, wells, costs) represent 100% of PEC project amounts, with 51% attributable to Condor.