CND ranks new targets in offshore Peru
Our oil and gas Investment Condor Energy (ASX: CND) just put out an exploration update from its offshore asset in Peru.
CND’s project sits on a massive 4,858km2 of ground offshore in Peru.
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.
Now, CND is working up its project as part of a two year Technical Evaluation Agreement (TEA).
The TEA is a low cost phase of work where CND does a bunch of desktop studies with the eventual goal of ranking high impact drill targets.
By the end of the two year period, CND should have a portfolio of leads with the lowest risk, highest reward targets ranked as priority drill targets.
Today CND put out an update on the seismic interpretation work which keeps ranking new targets for the company.
Here are our key takeaways from today’s announcement:
1. New priority target (Salmon lead) mapped
CND identified a whole new lead right in between its Raya and Bonito prospects.
2. Multiple stacked targets in the Salmon lead
CND has interpreted multiple stacked structural traps which could be a sign there are stacked targets across the lead.
Stacked targets means more shots on goal when the target is drilled.
3. Potential Direct Hydrocarbon Indicators (DHI’s) identified
The bright spots on the image below could potentially be DHI’s.
DHI’s are important because they are usually signals of hydrocarbon bearing reservoirs on seismic data.
How does today’s news impact our CND Investment Memo?
Project has existing 2D & 3D seismic data
7,935km2 2D seismic data and ~3,878km2 of 3D seismic data. As well as ‘well control’ and ‘geological’ data. This data would cost tens of millions of dollars if it were to be done again. CND benefits from all of the old work done on the project.
Source: “Why did we Invest” - CND Investment Memo 5 Dec 2023
The seismic data on hand would cost tens of millions of dollars to get hold of - CND gets access to all of this previous work.
CND’s huge library of seismic data means the project is open to ranking new drill targets (like the Salmon lead).
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: “Why did we Invest” - CND Investment Memo 5 Dec 2023
CND is able to produce newsflow like today’s announcement under its TEA.
Normally getting to this point with an offshore oil and gas asset would take years and millions of dollars.
What’s next for CND?
Below is a timeline of what we expect to see from CND next:
