Condor Energies Inc. (TSX: CDR): Imminent flow rate results for first horizontal well. LNG facility construction 90% complete.
• 3Q25 production averaged 9,978 mboe/d, broadly in line with expectations.• In Uzbekistan, drilling of a 1,000‑meter lateral section at the first horizontal well is underway, with numerous mud gas shows recorded. The lateral may be extended, and the well is expected to be brought onstream in December, potentially adding more than 10 mmcf/d of production. A second horizontal well will follow immediately from the same pad, targeting a shallower carbonate reservoir
• A second rig is scheduled to arrive in 1Q26, enabling Condor to accelerate horizontal drilling. Up to 12 horizontal wells are planned for 2026.
• Overall 18 undrilled structures have been identified on 3D seismic. The company intends to begin by drilling vertical wells to validate the subsurface structures, before advancing to horizontal development from a limited number of pad locations.
• The procurement process of the first phase of a field compression project has commenced. The project could deliver more than 20 mmcf/d of incremental production in 2026, with total capex estimated at US$13 mm.
• Our FY26 forecast remains unchanged at approximately 17 mboe/d.
• Condor reported C$22.7 mm in cash at the end of September. Accounts receivable declined from C$27 mm at end‑2Q25 to C$15 mm at end‑3Q25.
• Our target price remains unchanged at C$5.90/share.
LNG
Construction of the main equipment for the first LNG plant (capacity 48,000 gallons/day) is ~90% complete. The unit will be shipped to Kazakhstan for assembly, with first LNG production targeted for 3Q26. The unrisked NAV for the initial Saryozek 48,000 gallons/day LNG module remains at ~C$1.15 per share. Debt financing to cover remaining costs through first LNG production is expected imminently.
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.
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