CALGARY, Alberta, March 20, 2025 (GLOBE NEWSWIRE) -- Condor Energies Inc. ("Condor” or the "Company”) (TSX:CDR), a Canadian based, internationally focused energy transition company focused on Central Asia is pleased to announce the release of its audited consolidated financial statements for the years ended December 31, 2024 and 2023, together with the related management's discussion and analysis. These documents will be made available under Condor's profile on SEDAR+ at www.sedarplus.ca and on the Condor website at www.condorenergies.ca. Readers are invited to review the latest corporate presentation available on the Condor website. All financial amounts in this news release are presented in Canadian dollars, unless otherwise stated.
HIGHLIGHTS
- Production in Uzbekistan for the fourth quarter of 2024 averaged 10,511 boe/d comprised of 61,275 Mcf/d (10,212 boe/d) of natural gas and 299 bopd of condensate from the eight fields the Company operates.
- Production in Uzbekistan for March 2025 month-to-date has averaged 12,019 boe/d due to highly capital efficient workover successes. A recent workover has increased daily production to 12,288 boe/d over the past five days.
- Uzbekistan gas and condensate sales for the fourth quarter of 2024 was $20.93 million.
- In June 2024, the Company initiated a multi-well workover program in Uzbekistan. A second workover rig began operations in late October 2024.
- The Company received two natural gas allocations in Kazakhstan (January 2024 and September 2024) to be used as feed gas for two of the Company's modular liquefied natural gas ("LNG”) production facilities.
- In July 2024, Condor signed its first LNG Framework Agreement for the production and utilization of LNG to fuel Kazakhstan's rail locomotives.
- In December 2024, the Company completed a brokered private placement of 10,198,582 common shares of the Company at a price of $1.90 per common share for gross proceeds of $19.4 million and incurred share issue costs of $1.3 million resulting in net proceeds of $18.1 million.
- As of December 31, 2024, total gross company proved plus probable reserves for the eight Uzbekistan fields determined by independent reserves evaluator McDaniel & Associates Consultants Ltd are 18.5 million boe.
- On February 24, 2025, Condor was awarded a second critical minerals mining license in Kazakhstan for a 100% working interest in the exploration rights for mining solid minerals for a six-year term within a 6800-hectare area (the "Kolkuduk” license).
- In March 2025, the Company signed a non-binding letter of intent outlining the basic terms and conditions for the purchase of a modular LNG facility capable of producing 48,000 gallons (80 MT) per day.
Don Streu, President and CEO of Condor commented: "As demonstrated by the Company's numerous 'Highlights' successes, 2024 was a transformational year. Our strategy to implement multiple proven Western technologies in Uzbekistan on eight existing gas fields has not only mitigated a twenty percent annual natural decline but yielded material production gains from the ongoing workover program and facilities upgrades. As a result, production volumes and revenues continue to increase quarter-on-quarter which are generating positive operating netbacks. In parallel with our production enhancement activities, we've implemented a strong safety culture through ongoing employee and contractor training which has resulted in zero lost time incidents since the start of the project.
2025 has started out equally as strong with our workover inventory delivering repeatable, capital efficient production gains as demonstrated by March 2025 production increasing to over 12,000 boepd. Results from our recently reprocessed 3D seismic data are providing higher resolutions that should assist with more accurately characterizing the reservoirs and identifying new targets in preparation for a 2025 infill vertical and horizontal drilling program.
Concurrently, we are rapidly advancing the development of Central Asia's first LNG production and sales to commence in the first half of 2026 in Kazakhstan. Construction of this facility is ongoing, and fabrication works are expected to be completed in the fourth quarter of 2025. The Company is in the process of securing LNG off-taker agreements and advancing funding alternatives for this project.
The Company also continues to grow its critical minerals land holdings in Kazakhstan and was recently awarded a second mining exploration license. Critical minerals have become a key focus for many countries' national security and economic prosperity. Condor's expanding critical minerals initiatives complement our existing Uzbekistan natural gas production enhancement project and our developing Kazakhstan LNG transportation fuel business to position the company to be a valuable supplier of secure, stable and sustainable energy and mineral needs in the geo-politically strategic Central Asia region. It also positions the Company to realize multiple revenue streams that should remain robust across varying economic conditions and geo-political priorities”.
Production in Uzbekistan
On January 30, 2024, the Company executed a production enhancement services contract with JSC Uzbekneftegaz to increase the production, ultimate recovery and overall system efficiency from an integrated cluster of eight conventional natural gas-condensate fields in Uzbekistan.
Production for the fourth quarter of 2024 averaged 10,511 boe/d, comprised of 61,275 Mcf/d (10,212 boe/d) of natural gas and 299 bopd of condensate. Since assuming operations on March 1, 2024, the Company has flattened the natural production decline rates, which previously exceeded twenty percent annually.
In late June 2024, the Company initiated a multi-well workover campaign for the eight fields including installing proven artificial lift equipment, perforating newly identified pay intervals, performing downhole stimulation treatments, and installing new production tubing. Based on early successes, a second workover rig was contracted and began operating in late October 2024. The workover campaign is proving to be highly capital efficient.
In early November 2024, the Company commissioned Uzbekistan's first in-field flowline water separation system which separates water from the gas streams at the field gathering network rather than at the production facility. This reduces pipeline flow pressure that can lead to higher reservoir flow rates. Additional separation units have been ordered and will be installed in the coming months. The existing pipeline and facilities infrastructure are also being evaluated to optimize water-handling, determine long term field compression requirements, and to enhance in-field gathering networks. Production in Uzbekistan for March 2025 month-to-date has averaged 12,019 boe/d due to continued capital efficient workover successes. A recent workover has increased daily production to 12,288 boe/d over the past five days. At least six additional well candidates have been identified with similar geologic characteristics using a combination of legacy data and reprocessed 3-D seismic data. Over the coming weeks, these wells will be evaluated to identify potential pay intervals and perforated accordingly.
By leveraging the geological similarities to Western Canada, the Company is maturing a horizontal and multi-lateral drilling campaign to commence in 2025. The Company is reprocessing existing 3-D seismic data which is providing higher vertical and lateral resolution and has significantly improved imaging to more accurately map gas reservoirs. This enhanced data is being applied to both the ongoing workover program and the upcoming infill drilling and well deepening programs. Proven Western drilling equipment and techniques will be implemented for this multi-well campaign, long lead items including tubulars and wellheads have been ordered and drilling rig contracting activities are underway.
LNG in Kazakhstan
Condor is planning to construct Kazakhstan's first LNG facilities and produce, distribute, and sell LNG to offset industrial diesel usage in the country. LNG applications include rail locomotives, long-haul truck fleets, marine vessels, mining equipment, municipal bus fleets, and other heavy equipment and machinery with high-horsepower engines. These applications have all successfully used LNG fuel in other countries.
In March 2025, the Company signed a non-binding letter of intent outlining the basic terms and conditions for the purchase of a modular LNG facility capable of producing 48,000 gallons (80 MT) per day. Construction of this facility is ongoing, and fabrication works are expected to be completed in the fourth quarter of 2025. The facility and supporting equipment will then be shipped to Kazakhstan for assembly and commissioning with LNG production expected in the first half of 2026. The Company is finalizing certain technical specifications for the facility prior to signing definitive purchase agreements with the manufacturer. Concurrently, the Company is in the process of securing LNG off-taker agreements for the initial LNG production and advancing funding alternatives for this project.
In August 2024, the Company received a second natural gas allocation in Kazakhstan to be used as feed gas for the Company's second modular LNG production facility that will be located near the Kuryk Port on the Caspian Sea. When combined with the first gas allocation disclosed in January 2024 for the Alga LNG facility, the total LNG fuel produced will have an energy-equivalent volume of over one million litres of diesel daily, while also reducing CO2 emissions equivalent to removing more than 38,000 cars from the road annually.
In July 2024, the Company signed its first LNG Framework Agreement (the "Framework Agreement”) for the production and utilization of LNG to fuel Kazakhstan's rail locomotives. The Framework Agreement was also signed by Kazakhstan Temir Zholy National Company JSC ("KTZ”), the national railway operator of Kazakhstan and Wabtec Corporation ("Wabtec”) (NYSE: WAB), a U.S. based locomotive manufacturer with existing facilities in Kazakhstan. KTZ and Wabtec previously signed a memorandum of understanding which includes modernization work to retrofit KTZ's mainline locomotive fleet for LNG usage and incorporate LNG into new-build locomotives. The Framework Agreement introduces Condor into this locomotive fleet modernization strategy as the supplier and distributor of the LNG.
The Framework Agreement is critical to supplying a stable, economic and more environmentally friendly fuel source for the Transcaspian International Transport Route ("TITR”) expansion, which is currently the shortest, fastest and most geopolitically secure transit corridor for moving freight between Asia and Europe. The Government of Kazakhstan and KTZ are making significant investments in TITR infrastructure, including expanding the rail network, constructing a new dry port at the Kazakhstan - China border, and increasing the container-handling capacities at various Caspian Sea ports.
Critical Minerals Licenses in Kazakhstan
The Company holds a 100% working interest in two contiguous critical minerals mining licenses which provide subsurface exploration rights for solid minerals including lithium, for respective six-year terms. The 37,300- hectare Sayakbay license was awarded in July 2023 and the nearby 6,800-hectare Kolkuduk license was awarded in February 2025.
A prior well drilled in the Kolkuduk license territory for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of up to 130 milligrams per litre as reported by the Ministry of Geology of the Republic of Kazakhstan. A 1,000-meter column of tested and untested brine reservoir has been identified from historical wireline log and core data. At Sayakbay, a prior legacy well drilled for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of 67 milligrams per litre in Carboniferous-aged intervals as reported by the Ministry of Geology of the Republic of Kazakhstan. A 670-meter column of tested and untested brine reservoir has been identified from historical wireline log and core data. Other critical minerals identified at the Kolkuduk and Sayakbay licenses include rubidium, strontium and cesium.
The Company is not treating these historical estimates as current mineral resources or mineral reserves as additional drilling and testing is necessary, and a qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. It is uncertain if further drilling will result in either area being delineated as a mineral resource or reserve. The historical lithium concentration estimates should not be relied upon as indicative of the actual lithium concentration or the likelihood that the Company will be able to achieve similar production results.
The initial development plan for Sayakbay includes drilling and testing two wells to verify deliverability rates, confirm the lateral extension and concentrations of lithium in the tested and untested intervals, conduct preliminary engineering for the production facilities, and prepare a mineral resource or mineral reserves report compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The initial development plan for the Kolkuduk license acquired in February 2025 has yet to be determined.
Private Placement of common shares in December 2024
On December 9, 2024, the Company completed a brokered private placement (the "2024 Private Placement”) and issued 10,198,582 common shares at a price of $1.90 per share for gross proceeds of $19.4 million and incurred share issue costs comprising broker and advisory fees, legal costs and listing fees of $1.3 million resulting in net proceeds of $18.1 million. Of the shares issued, 4,935,432 have a hold period of four months and one day which expires on April 10, 2025.
In connection with the 2024 Private Placement, the Company issued 221,163 broker warrants exercisable into 221,163 common shares of the Company at $2.20 per common share on or before December 9, 2026.
SELECTED FINANCIAL INFORMATION
| As at, and for the years ended December 31, ($000's except for share amounts) | 2024 | 2023 | 2022 | |||||
| Natural gas and condensate sales | 66,626 | 643 | 3,607 | |||||
| Total revenue (sales less royalties) | 54,323 | 552 | 3,119 | |||||
| Net income (loss) | 3,493 | (11,392 | ) | (3,064 | ) | |||
| Net loss attributable to common shareholders | (4,072 | ) | (11,392 | ) | (3,064 | ) | ||
| Net loss per share (basic and diluted) | (0.07 | ) | (0.20 | ) | (0.07 | ) | ||
| Total assets | 66,607 | 6,769 | 10,062 | |||||
| Non-current financial liabilities | 9,364 | 5,504 | 99 | |||||
RESULTS OF OPERATIONS
Reserves
The Company's 2024 reserves, all in Uzbekistan, were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (see "Reserves Advisory”). The gross Company reserves as of December 31, 2024 are summarized by volume and net present value (after tax) discounted at 10% ("NPV10”) in USD as follows:
Gross Company Reserves as of December 31, 2024 | Gas (MMcf) | Condensate (Mbbl) | Boe* Reserves (Mboe) | NPV 10 Before Tax (in USD 000's) | ||||
| Proved | 89,161 | 366 | 15,227 | 34,828 | ||||
| Probable | 18,591 | 120 | 3,278 | 15,547 | ||||
| Proved plus Probable | 108,112 | 486 | 18,505 | 50,375 |
(* based on gas/boe conversion of 6 to 1)
During the fourth quarter of 2023, the recoverable amount of the Company's properties in Türkiye were deemed to be $Nil and there are no economic reserves attributed to the Poyraz Ridge or Destan properties as of December 31, 2023.
Production
| For the three months ended December 31 | 2024 | 2023 | Change | |||
| Natural gas (Mcf) | ||||||
| Uzbekistan | 5,637,255 | - | 5,637,255 | |||
| Türkiye | 2,154 | 4,533 | (2,379 | ) | ||
| 5,639,409 | 4,533 | 5,634,876 | ||||
| Condensate (barrels) | ||||||
| Uzbekistan | 27,541 | - | 27,541 | |||
| Türkiye | - | - | - | |||
| 27,541 | - | 27,541 | ||||
| For the years ended December 31 | 2024 | 2023 | Change | |||
| Natural gas (Mcf) | ||||||
| Uzbekistan | 18,431,933 | - | 18,431,933 | |||
| Türkiye | 29,478 | 38,097 | (8,619 | ) | ||
| 18,461,411 | 38,097 | 18,423,314 | ||||
| Condensate (barrels) | ||||||
| Uzbekistan | 77,386 | - | 77,386 | |||
| Türkiye | - | 9 | (9 | ) | ||
| 77,386 | 9 | 77,377 | ||||
Operating Netback - Uzbekistan
| 2024 Operating netback1,2 | Uzbekistan Natural Gas | |||
| Q4 2024 | YTD 2024 | |||
| Natural gas sales ($000's) | 18,731 | 60,135 | ||
| Royalties ($000's) | (3,435 | ) | (11,039 | ) |
| Production costs ($000's) | (7,988 | ) | (25,064 | ) |
| Transportation and selling ($000's) | (657 | ) | (2,129 | ) |
| Operating netback ($000's)1,2 | 6,651 | 21,903 | ||
| Natural gas sales (Mcf) | 5,255,725 | 17,149,079 | ||
| Natural gas sales ($/Mcf) | 3.56 | 3.51 | ||
| Royalties ($/Mcf) | (0.65 | ) | (0.64 | ) |
| Production costs ($/Mcf) | (1.52 | ) | (1.46 | ) |
| Transportation and selling ($/Mcf) | (0.13 | ) | (0.12 | ) |
| Operating netback ($/Mcf)1,2 | 1.26 | 1.29 | ||
| 2024 Operating netback1,2 | Uzbekistan Condensate | |||
| Q4 2024 | YTD 2024 | |||
| Condensate sales ($000's) | 2,199 | 6,097 | ||
| Royalties ($000's) | (440 | ) | (1,211 | ) |
| Production costs ($000's) | (184 | ) | (508 | ) |
| Transportation and selling ($000's) | (10 | ) | (29 | ) |
| Operating netback ($000's)1,2 | 1,565 | 4,349 | ||
| Condensate sales (bbl) | 26,823 | 76,544 | ||
| Condensate sales ($/bbl) | 81.98 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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