Condor Energies Inc. (TSX: CDR): Uzbekistan production boost: two new wells onstream in February
• The first horizontal well is now onstream. Only the shallower interval has been tested to date, delivering 3.6 mmcf/d. The full ~1 km lateral — including the zones with the strongest gas‑show responses — has not yet been accessed. A larger‑diameter coiled‑tubing unit than is currently available is required to displace the completion fluid; the smaller‑diameter unit used by Condor could not safely reach the end of the open‑hole lateral without risking damaging the open hole section.• Additional equipment is being sourced to enable full access to the lateral section.
• At the second horizontal well, drilling of the lateral section is expected to begin later this week. The lateral will target the same shallow carbonate interval successfully tested in the first well. Completion and testing operations are scheduled to start in early February.
• Drilling has also commenced at a vertical well using the newly mobilized second rig. The well is expected to intersect the target reservoirs by the end of January, with initial test rates anticipated by mid‑February. This well is located in an under‑developed gas field currently producing from a single downdip well, where Condor perforated an 8‑metre carbonate interval that has averaged 5.5 mmcf/d over the past ten months. The field has meaningful upside potential, with up to six horizontal wells planned up‑dip across a large, undeveloped structural closure.
• We reiterate our target price of C$5.60 per share. We expect an update shortly on the financing for the first modular LNG unit in Kazakhstan.
Production growth profile
Uzbekistanan gross production averaged 10,534 boe/d in 4Q25, rising to 11,462 boe/d in December. We believe current output is already higher, reflecting the initial contribution from the first horizontal well. Assuming ~10 mmcf/d for the second well and 5 mmcf/d for the third well, we estimate that total production could reach 13–14 mboe/d by the end of 1Q26. Looking ahead, with up to 12 additional horizontal wells planned by year‑end 2026, we forecast production of 18–20 mboe/d by YE26
Valuation
Our ReNAV for Condor is C$5.55 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.
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