Condor Announces 2025 Second Quarter Results and USD $5.0 Million Bridge Loan

Executive Summary

• Condor Energies Inc. released its unaudited interim financial statements for the three and six months ended June 30, 2025, alongside a detailed management’s discussion and analysis.
• The company reported Q2 2025 production in Uzbekistan averaging 10,258 boe/d (10,004 boe/d natural gas and 254 bopd condensate), with total sales revenue of $19.29 million for the quarter.
• Significant operational milestones include the securing of a third natural gas allocation in Kazakhstan, the purchase of a modular LNG facility, and the execution of a $5.0 million bridge loan to fund the LNG project, which is scheduled to commence production in Q2 2026.

Key Details

• Uzbekistan Production (Q2 2025):
  • Average daily production: 10,258 boe/d.
  • Natural gas: 10,004 boe/d (60,027 Mcf/d).
  • Condensate: 254 bopd.
  • Total Q2 Sales: $19.29 million.
  • Production was partially restricted by downstream infrastructure maintenance and increased pipeline pressures.
• Uzbekistan Drilling & Compression Plans:
  • Rigging up underway for a multi-well drilling program starting early September 2025.
  • First well will be vertical to evaluate carbonate and deeper stacked clastic reservoirs/basement rock.
  • Two horizontal wells planned for Q4 2025 using Western MWD/LWD; expected initial production 13–20 MMscf/day per well.
  • Up to 11 new wells planned for 2026; potential to add a second rig.
  • Detailed engineering for field compression is ongoing to mitigate pipeline pressure; installation expected in 2026, potentially increasing production by 25–55%.
  • Water separation systems commissioned to reduce back pressure; four additional units installed through May 2025.
• Kazakhstan LNG Project:
  • Secured third natural gas allocation on April 15, 2025.
  • Purchased First LNG Facility in May 2025; capacity of 48,000 gallons (80 MT) per day.
  • Fabrication on schedule for completion by end of Q4 2025; LNG production expected Q2 2026.
  • Costs incurred as of June 30, 2025: CAD $2.9 million ($2.2M PPE, $0.7M for gas allocation).
  • Estimated additional costs to complete: USD $24.4 million (CAD $33.3 million).
  • Two additional modular LNG facilities planned to utilize the third gas allocation.
• Financing:
  • Executed a USD $5.0 million bridge loan on August 12, 2025, provided by Eurasia Resource Value SE (existing shareholder).
  • Loan terms: Unsecured, 9.0% interest per annum, no equity/conversion features, no financial covenants.
  • Repayment: No principal or interest payments until maturity; early repayment permitted without penalty.
  • Maturity: Earlier of March 30, 2026, or 10 business days after receipt of third-party project financing.
  • Use of proceeds: Capital expenditures and G&A for the First LNG Facility.
• Critical Minerals (Kazakhstan):
  • Holds 100% working interest in Sayakbay (37,300 hectares) and Kolkuduk (6,800 hectares) licenses.
  • Historical brine data shows lithium concentrations up to 130 mg/L (Kolkuduk) and 67 mg/L (Sayakbay).
  • Initial development plan for Sayakbay includes drilling two wells to verify deliverability; estimated cost USD $6.7 million (CAD $9.1 million).
  • Drilling at Sayakbay not expected until 2027.

Notable Quotes

• Don Streu, President and CEO: “We are generating multiple near-term catalysts from our diverse portfolio of first-mover energy security initiatives... The first well will also penetrate deeper, under-exploited stacked clastic reservoirs and basement rock formations, where the potential exists to discover a fractured gas opportunity.”
• Don Streu, President and CEO: “In Kazakhstan, fabrication of our first modular LNG facility is on schedule and will enable us to initiate Central Asia’s first LNG production by the second quarter of 2026. We recently executed a USD $5.0 million-dollar bridge loan from a long-standing and significant shareholder, demonstrating their belief and commitment to this initiative.”