Condor Energies Inc. (TSX: CDR): Two bypassed pay zones add ~2 mboe/d. Flow rate at 1st Hz well by mid-December
• The A-23 horizontal well at the Andakli field has reached total depth, completing a ~1,000 m open-hole section which is Uzbekistan’s longest on record. Initial gas flowback has already been observed at surface. A service rig will conduct flow testing, with the well scheduled to enter production in December. Meanwhile, the drilling rig will spud an even longer lateral second horizontal well from the same pad, targeting a separate carbonate reservoir currently produced via vertical wells in the Andakli field.• At A-23, the vertical pilot well discovered a fair-to-good quality reservoir within the deep Jurassic Clastics. This horizon lies beneath the Jurassic Carbonates, which currently account for the majority of Condor’s production and reserves. While reserves in the deep Jurassic Clastics are presently minimal, Condor has highlighted the horizon’s potential to host material resource volumes.
• Two earlier wells drilled by the prior operator, NS-01 and NS-12, intersected the same horizon which was not placed on production at the time. Condor has now perforated 3.1 m of net reservoir at NS-01 and 2.1 m at NS-12. These intervals delivered strong flow rates 7.6–11.4 mmcf/d plus 58–66 bbl/d of condensates for NS-01 and 4.0–6.6 mmcf/d plus 12–20 bbl/d of condensates for NS-12. Both wells exhibited very high flowing pressures, reaching up to 1,735 psi.
• The results carry three key implications. (1) Production has risen ~20%, from 9,878 boe/d in 3Q25 to 11,844 boe/d. (2) Additional reserves are likely to be booked for NS-01 and NS-12. (3) The performance underscores the significant upside potential of the deep Jurassic Clastics. With netbacks of ~US$6/boe, the total US$0.5 mm investment for both workovers achieves payback in just 20 days at 2 mboe/d.
• Our target price remains unchanged at C$5.90 per share.
Valuation
Our core NAV for Condor based on Uzbekistan alone is ~C$1.00 per share. This excludes any contribution from the new prospects identified on 3D seismic nor the Clastic resources. The total unrisked value of Condor’s broader LNG portfolio exceeds C$8.00 per share, while our ReNAV remains broadly unchanged at ~C$5.80 per share.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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