Condor Energies Inc. (TSX: CDR): Very high flow rate at latest hz well boosts reserves, production and exploration upside.

• The K‑46 horizontal well has delivered an excellent result, flowing at rates of up to 18.3 mmcf/d. It has been choked back to a stable 15.5 mmcf/d to mitigate the risk of gas‑hydrate formation.
• The flowing pressure of 1,235 psi is very high. With an initial reservoir pressure of 2,695 psi—only 9% below virgin conditions—the data confirms that the pool remains largely undrained. The well’s absolute open‑flow potential is estimated at 67 mmcf/d.
• The well is expected to be brought onstream next week. With at least three additional horizontal wells planned from the same pad in the same reservoir (drilling at K‑47 begins next week), achieving 20 mboe/d of production by YE26 is well within reach. Notably, K‑46 was drilled in 35 days, down from 55 days for the previous horizontal well, and further efficiency gains are likely.
• This strong test result should support a material increase in 2P reserves at YE26, as horizontal wells were not incorporated into the auditor’s prior reserves estimates.
• The result also underscores the quality and scale of Condor’s Uzbekistan assets, and highlights the effectiveness of the company’s strategy of applying Canadian drilling technologies and operating practices to unlock production and reserves in Uzbekistan.
• We have increased our target price from C$5.60 to C$5.80 per share in line with our updated ReNAV.

Unlocking the upside
The very high flow rate at K-46 is consistent with dolomitisation of the Kumli NW’s upper reservoir, which has resulted in better‑than‑expected reservoir quality. Condor believes this dolomitisation trend could extend across the broader Kumli area, where 17 additional structures have already been mapped. If confirmed, the success seen at K‑46 could be repeated across multiple structures. Importantly, the dolomitised intervals appear to be identifiable on seismic, providing a valuable predictive tool for future drilling.

Valuation
In light of this result, we have increased our 2027 production forecast from 17.5 mboe/d to 19 mboe/d. Overall, we carry a 100% potential reserves upside, supported by a high degree of confidence, with a combined 360 bcf of gross 2P reserves and recoverable resources. Given the additional upside associated with the 17 mapped Kumli structures, we have incorporated into our valuation two structures with a combined recovery of 16 mmboe (assuming 4 wells per structure, each recovering 2 mmboe). As a result, we have increased our ReNAV from C$5.55/sh to C$5.80/sh. The total unrisked value of the LNG portfolio stands at ~ C$7.30/sh.