CND completes feasibility study on 1.1TCF gas discovery

Our $16.4M capped oil and gas Investment Condor Energy (ASX: CND) just completed a feasibility study for its EXISTING gas discovery.

CND holds a 100% interest in a Technical Evaluation Agreement (TEA) for an offshore oil and gas exploration block in Peru.

A TEA is basically the step before an exploration license is officially granted and a company gets full exploration rights over a block in Peru.

CND has an application in right now to convert its TEA into an exploration license - we think that could be the next big catalyst for CND.

Inside CND’s block there is:

• 3.3 billion barrels of unrisked prospective oil resources (2U) (the swing for the fences exploration upside), AND
• An existing, previously flow tested 1 trillion cubic feet (TCF) gas DISCOVERY (contingent resource, 2C).

Today, CND completed a feasibility study on developing the gas discovery, showing:

• The gas field can be developed using simple, proven technology - a shallow water platform with a ~15km pipeline back to shore without any complex or expensive deepwater infrastructure.
• The project can start small and scale up as gas customers are signed - one platform delivering 30-80 million cubic feet of gas per day, or two platforms delivering 100-150 million.

Visually, it would look something like this - (the image is from a CND investor presentation from earlier in the year):

(source)

Basically, CND now has an independently verified engineering study to put in front of gas buyers, potential partners and financiers.

Which we think comes into play IF/When CND has its TEA converted into an exploration license…

CND’s block is surrounded by oil and gas supermajors

CND was the earliest entrant into Peru (back in 2023), since then we have seen:

• US$254BN supermajor TotalEnergies come into Peru - surrounding CND’s block and now going for a full licence contract over the blocks.
• US$516BN Chevron come into Peru,
• US$76BN Occidental come into Peru - They have already shot a big 3D marine seismic survey and in 2025 brought in a partner (Westlawn) to help fund drilling. (source)
• The most recent entrant is $43BN Spanish major Repsol which signed agreements with the regulators only a few weeks ago.

There were even rumours back in September 2025 that the Qatari’s were scoping opportunities in Peru.

(source)

Here is where CND’s block sits relative to some of the bigger guys who have come into Peru:

(source)

We think the majors coming into Peru is a precursor for the opening up of the offshore oil and gas industry.

Back in April 2025 CND said it had “multiple parties in the dataroom” and that a “farm out process had commenced”. (source)

We think IF CND’s TEA is converted into an exploration license any warming up done during those discussions can start being converted into deals…

By that we mean IF any other supermajor wanted to come into Peru they could just partner with CND on either:

• The 3.3BN oil unrisked prospective resources - big enough to warrant drilling AND if a discovery is made - plenty of follow up targets to drill.

(source)

• A 1.1TCF gas discovery (contingent resource) that has seen a development scenario considered for it back in 2006.

Someone could hypothetically come in for the gas alone OR come in for the oil alone.

The big appeal will be for someone big enough to come in and develop the gas while going for moonshot exploration on the oil.

We also like that there is a precedent for big deals being done offshore in Peru too.

Back in 2009, KNOC (the South Korean National Oil Corporation) and Ecopetrol (the Colombian National Oil Company) signed a deal worth US$900M for projects to the south of CND's block. (source)

Then there was the farm-out the previous owners of CND’s block ($960M Karoon Energy) did a deal with Tullow Oil back in 2019.

And the most recent one is the one that Occidental did with Westlawn…

(source)(source)(source)

We think there is a very good chance CND is able to attract a farm-in partner for the project again.

What’s next for CND?

License application outcome

The single biggest catalyst for CND right now is the outcome of the licence contract application.

Up until now, CND operated the project under a Technical Evaluation Agreement (TEA).

Reprocessing seismic data, new geological modelling and updating the resource estimates over the project. (source)

Back in May CND made its submission to convert the TEA into a license contract:

Ultimately, the licence contract is what gives CND the right to drill and develop the block.

And we think IF successful - that grant alone could be a major catalyst for a re-rate in CND’s share price…

We think it will also put CND’s block in play and allow for deals to be done over the asset:

(source)