Condor Announces 2025 Year-End Results

Executive Summary

• Condor Energies released its audited consolidated financial statements for 2025 and 2024, showing a 20 % increase in Q4‑2025 production and a $1.23 M net income for 2025 versus a $3.49 M loss in 2024.
• The company completed fabrication of its first LNG liquefaction facility (48,000 gal/day capacity) and is testing it ahead of shipment to Kazakhstan in Q2 2026; third‑party financing negotiations are ongoing.
• A $13.65 M private placement of convertible debentures closed on Dec 24 2025 and a USD 5 M bridge loan was extended to July 15 2026, providing capital for Uzbek drilling, field compression, and LNG development; simultaneously, Condor entered into an SPA to sell its Turkish subsidiary for a royalty stream and nominal cash consideration.

Key Details

• Financial Highlights (CAD):
• 2025 revenue: $69.5 M (up 21 % YoY).
• Net income 2025: $1.23 M (vs. loss of $3.49 M in 2024).
• Net loss attributable to shareholders 2025: $(4.21) M (vs. $(4.07) M in 2024).

• Total assets end‑2025: $98.4 M; non‑current financial liabilities: $19.2 M.

• Uzbekistan Production:

• Q4‑2025 avg. 10,534 boe/d (61,310 Mcf/d gas + 316 bopd condensate), a 5.6 % QoQ increase.
• March 2026 month‑to‑date avg. 12,622 boe/d (73.6 MMcf/d gas + 348 bopd condensate).

• Year‑ended 2025 avg. 10,484 boe/d (61,213 Mcf/d gas + 282 bopd condensate), up 1.9 % YoY.

• Drilling Program (Uzbekistan):

• September 2025 – three wells drilled: horizontals A‑21 & A‑23, vertical K‑45.
• A‑21 test: 7.3 MMscf/d (1,213 boe/d) at 722 psi for 2 h.
• K‑45 test: 5.3 MMscf/d (883 boe/d) at 1,053 psi for 7 h.
• Fourth well K‑46 (horizontal) drilled to 2,335 m; testing targeted mid‑April 2026.

• Plan to drill up to 12 wells in 2026 after replacing first rig.

• Field Booster Compression (Uzbekistan):

• Tender underway; contract award expected Q2 2026.

• Expected incremental production >20 MMscf/d; commissioning Q1 2027.

• LNG Facility (Kazakhstan):

• First LNG Facility fabricated; function & acceptance testing ongoing.
• Capacity: 48,000 gal/day (80 MT/day); two additional modules planned.
• Shipment to Kazakhstan slated for Q2 2026; production start late Q4 2026.

• Capital cost incurred to date: CAD 8.5 M; estimated remaining cost USD 22.7 M (CAD 31.1 M).

• Financing Activities:

• Bridge Loan: USD 5 M from EurAsia Resource Value SE, 9 % interest, maturity extended to July 15 2026; proceeds for LNG capex & G&A.

• Convertible Debentures (2025): Gross proceeds $13.65 M (net $12.59 M after $1.06 M issuance costs); 12 % annual interest, convertible at US$2.00 per share; maturity Dec 24 2028; use of proceeds – Uzbek drilling & compression, working capital, general corporate.

• Divestiture (Turkey):

• SPA signed Jan 21 2026 to sell subsidiary holding Poyraz Ridge & Destan licenses.

• Consideration: ten‑year gross overriding royalty (0–15 % based on production) capped at US$10 M plus €18,000 cash at closing; buyer assumes minimum work commitment and operating expenses until closing.

• Critical Minerals Licenses (Kazakhstan):

• 100 % interest in Sayakbay (37,300 ha) & Kolkuduk (6,800 ha).
• Historical brine lithium assays: up to 130 mg/L (Kolkuduk) and 67 mg/L (Sayakbay).

• Initial development plan for Sayakbay: two wells, engineering studies; cost estimate USD 6.7 M (CAD 9.1 M); drilling not before 2027.

• Reserves (Uzbekistan – 51 % Working Interest):

• Proved: 78,231 MMcf gas, 381 Mbbl condensate → 13,419 mboe; NPV10 $40.0 M.

• Probable: 14,206 MMcf gas, 68 Mbbl condensate → 2,436 mboe; NPV10 $10.5 M.

• Operating Netback (2025):

• Natural gas netback $6.93 M; condensate netback $1.20 M; total $8.13 M.

Notable Quotes

“It’s been a transformational year for Condor… our current activities in Uzbekistan are providing sustainable growth for reserves, production, and cashflow while we concurrently advance our LNG fuel substitution project…” – Don Streu, President & CEO

Materiality Assessment: Material – Positive (the release contains audited financial results, significant operational improvements, major financing closures, and a strategic divestiture that together have a material impact on the company’s valuation and outlook).