CND completes fieldwork on oil and gas targets
Our 2023 Energy Pick of the Year Condor Energy (ASX: CND) just put out an update on its large Peruvian oil & gas project.
CND holds a massive 4,858km2 of ground offshore in Peru - right next door to ground that $250BN oil supermajor Total Energies recently picked up.
Inside CND’s project area there are already multiple existing discoveries including the Piedra Redonda discovery where CND has a 404 Bcf contingent and 2.2 trillion cubic feet prospective resource.
CND is operating the project under a Technical Evaluation Agreement (TEA) which means TEA do 24 months of low cost desktop studies before having to think about a drill program.
As part of that TEA, CND has been working on firming up targets inside three key areas of its project:
Today, CND completed fieldwork across two of its primary reservoir targets - Zorritos and Mancora.
The whole purpose of the field mapping and sampling program is for CND to plug the data into its existing seismic data and update its model geological models.
At a very high level, it's CND’s way of getting a better grip on the type of geology in and around its project.
Below is those models look like:
How today’s news relates to our CND Investment Memo:
Why we Invested in CND:
Reason why we Invested: Low-cost work program
CND’s Technical Evaluation Agreement (TEA) means it will be doing mostly desktop work (identifying and ranking drill targets) for an initial two year period.
There is no large capital commitment for any exploration wells which gives CND two years to rank its highest priority drill targets and put together big prospective resource numbers.
Source: “Reasons We Invested” Section - CND Investment Memo Dec 2023
Today’s announcement shows CND doing more high value/relatively low cost work under its TEA.
CND is able to get a better understanding of its project area and the primary targets the company is working with without having to drill any hugely expensive well.
Below is what CND’s TEA looks like:
What’s next for CND?
Today’s news was the “prospect mapping” item on the image below.
If the timeline is anything to go by, we should be getting some news from CND’s Piedra Redonda project soon:
