Condor Energies Inc. (TSX: CDR): Accelerating drilling following C$13.65 mm financing
• Following the closing of the C$13.65 mm convertible financing, Condor plans to accelerate its Uzbekistan drilling programme by deploying a second rig, enabling the drilling of 12 new wells in 2026. This programme has the potential to lift gross production to 18–20 mboe/d by year‑end 2026 and materially increase reserves.• The C$13.65 mm convertible debentures carry a 12.0% annual coupon and a conversion price of C$2.00 per share, with maturity in December 2028.
• We expect imminent flow‑test results from the A‑23 horizontal well at the Andakli field. We are also expecting an update on the offtake agreement and financing for its modular LNG project in Kazakhstan.
• Our target price of C$5.60 per share incorporates the impact of the C$13.65 mm financing.
Improving investment conditions across Central Asia
• Following the US–Central Asia (C5+1) Summit in November—where agreements totalling approximately US$17 bn were signed—the Trump administration has increased its focus on Central Asia, contributing to a rising wave of investment in the region. Kazakhstan and Uzbekistan have both been invited to the US‑hosted G20 Summit in 2026, underscoring their growing strategic importance.
• In November, Japan also announced plans to invest roughly US$19 bn in Central Asia over the next five years to develop a transport corridor to Europe that bypasses Russia. Uzbekistan alone has attracted around €30 bn of foreign investment into its energy sector over the past five years, supporting new power generation, storage and infrastructure projects.
• UzNIF—Uzbekistan’s national investment fund, established in May 2025 and managed by Franklin Templeton— oversees more than US$1.5 bn in assets and holds minority stakes in 18 state‑owned enterprises. The fund is a potential candidate for an IPO in London as early as 2026.
Valuation
Our ReNAV for Condor is C$5.56 per share. The total unrisked value of Condor’s broader LNG portfolio is ~C$6.80 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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