Condor Announces 2025 Second Quarter Results and USD $5.0 Million Bridge Loan
CALGARY, Alberta, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Condor Energies Inc. ("Condor" or the "Company") (TSX:CDR), a Canadian based, internationally focused energy transition company focused on Central Asia is pleased to announce the release of its unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2025 (the "Financial Statements"), together with the related management's discussion and analysis. These documents will be made available under Condor's profile on SEDAR+ at www.sedarplus.ca and on the Condor website at www.condorenergies.ca. Readers are invited to review the latest corporate presentation available on the Condor website. All financial amounts in this news release are presented in Canadian dollars, unless otherwise stated.
HIGHLIGHTS
Production in Uzbekistan for the second quarter of 2025 averaged 10,258 boe/d comprised of 10,004 boe/d (60,027 Mcf/d) of natural gas and 254 bopd of condensate.
Uzbekistan natural gas and condensate sales for the second quarter of 2025 was $19.29 million.
Rigging up operations are underway to commence a multi-well drilling program by early September 2025.
Detailed engineering for the design and installation of field compression is ongoing, which is intended to mitigate increasing sales gas pipeline pressures that have started impacting production rates.
On April 15, 2025, the Company secured its third natural gas allocation in Kazakhstan to be used for LNG production
On May 6, 2025, the Company purchased a modular LNG facility (the "First LNG Facility") capable of producing 48,000 gallons (80 MT) of LNG per day with LNG production planned to commence in the second quarter of 2026.
On August 12, 2025, the Company executed a USD $5.0 million-dollar bridge loan facility (the "Bridge Loan") for the First LNG Facility which is on schedule to produce Kazakhstan's first LNG in the second quarter of 2026.
MESSAGE FROM CONDOR'S CEO
Don Streu, President and CEO of Condor commented: "We are generating multiple near-term catalysts from our diverse portfolio of first-mover energy security initiatives. In Uzbekistan, a multi-well drilling program is expected to begin by early September 2025. The first well will be drilled vertically and collect modern data to optimize subsequent horizontal wells that we estimate could initially produce at between 13 and 20 MMscf/day each. The first well will also penetrate deeper, under-exploited stacked clastic reservoirs and basement rock formations, where the potential exists to discover a fractured gas opportunity. We will then begin drilling up to twelve horizontal wells and one additional vertical well in this initial campaign.
Concurrently, a detailed engineering study is underway for the design and installation of field compression to mitigate increasing sales gas pipeline pressures. Field compression is expected to be installed in 2026 and should provide strong production gains for our Uzbekistan operations.
In Kazakhstan, fabrication of our first modular LNG facility is on schedule and will enable us to initiate Central Asia's first LNG production by the second quarter of 2026. We recently executed a USD $5.0 million-dollar bridge loan from a long-standing and significant shareholder, demonstrating their belief and commitment to this initiative. The bridge loan terms are very attractive and provide funding for long lead equipment to maintain the project timeline while third-party project financing is being finalized.
Also in Kazakhstan, the three LNG feed gas allocations that we've now secured will allow us to fabricate and operate several additional LNG facilities to ensure sustainable cash flow growth. These facilities are critical to supporting the fuel needs of Kazakhstan's rapidly expanding transportation networks.
The Condor team continues to advance our diverse portfolio with a strong foundation for cashflow growth that is being actively developed to realize material value".
Production in Uzbekistan
The Company operates under a production enhancement services contract with JSC Uzbekneftegaz in Uzbekistan to increase the production, recovery and overall system efficiency from an integrated cluster of eight conventional natural gas-condensate fields (the "PEC Project"). Production for the second quarter of 2025 averaged 10,258 boe/d comprised of 10,004 boe/d (60,027 Mcf/d) of natural gas and 254 bopd of condensate. Production rates in the second quarter of 2025 were partially restricted due to unplanned downstream infrastructure maintenance and plant upsets at non-Company operated facilities that increased the sales gas pipeline pressure which curtailed production. Also, recent workovers were more focused on modern data collection to enhance geologic and reservoir modelling in preparation for the upcoming drilling campaign instead of production gains. More than 50 workover operations have been performed since the Company assumed operations in March 2024, which has proven to be a very capital efficient method to mitigate the natural production decline rate of 20 percent per year and has grown production rates and recoveries. However, material near term production growth initiatives are now expected to come from executing a multi-well drilling program and the design and installation of field compression to help mitigate increasing sales gas pipeline pressures.
Rigging up operations are underway to commence a multi-well drilling program in early September 2025. The first well will be drilled vertically to penetrate and evaluate the currently producing carbonate reservoir sections as well as the deeper, under-exploited stacked clastic reservoirs before reaching its total depth at the top of the basement rock formations, where potential exists for a fractured reservoir play. The stacked clastic reservoirs hold exciting upside potential throughout the region as indicated by previously drilled deep wells that have consistently observed strong gas shows from this interval.
Data from the first vertical well will play a critical role in optimizing the subsequent horizontal well target intervals. Two horizontal wells are expected to be drilled in the fourth quarter of 2025 and will utilize Western MWD and LWD technologies and personnel to geo-steer the drill bit within the mapped porous intervals to drill lateral distances of up to 1,500 meters initially. The horizontal wells will be oriented to intersect open, natural fractures and will be completed as open holes, stimulated using a proprietary acid blend assisted by nitrogen. This integration of ‘surgical geo-steering' over long lateral distances to maximize reservoir contact will be the first ever application within Uzbekistan. Based on analogous Western Canadian reservoirs, an internally developed ‘type curve' for these horizontal wells has indicated that initial production rates are expected to be within a range of 13 MMscf/day to 20 MMscf/day per well, although actual results may differ due to geological or operational conditions as described below in the Forward-Looking Statements section. The Company currently plans to drill up to eleven new wells in 2026.
The Company continues to mature and expand its well prospect inventory by interpreting and integrating 1,462 km2 of recently reprocessed 3D seismic data and 142 km2 of 3D seismic inversion attributes. These efforts have already identified eight targets that can be classified as either large, undrilled attic accumulations of gas or undrilled exploratory structures near the Company's producing gas fields. Based on successful initial drilling results, the Company plans to contract a second drilling rig to further accelerate overall gas production.
Detailed engineering for the design and installation of field compression is ongoing with the intent of mitigating the increasing sales gas pipeline pressures that have started curtailing production rates. Field compression is expected to be installed in 2026 and should provide material production gains. Based on internal calculations, existing production could increase by 25 to 55 percent due to field compression, although actual results may differ as described below in the Forward-Looking Statements section. More details will be provided once the detailed engineering study is completed.
In the fourth quarter of 2024, the Company commissioned Uzbekistan's first in-field flowline water separation system which separates water from the gas streams at the field gathering network rather than at the production facility. This reduces pipeline flow pressure and allows the reservoir to flow at higher rates due to reduced back pressure. Four additional separation units have since been installed and commissioned through May 2025.
LNG in Kazakhstan
Condor is constructing Kazakhstan's first LNG facilities to produce, distribute, and sell LNG to offset industrial diesel usage in the country. LNG applications include rail locomotives, long-haul truck fleets, marine vessels, mining equipment, municipal bus fleets, and other heavy equipment and machinery with high-horsepower engines. These applications have all successfully used LNG fuel in other countries.
In May 2025, the Company purchased the First LNG Facility for its Saryozek plant site, capable of producing 48,000 gallons (80 MT) of LNG per day. Construction of the First LNG Facility is ongoing, and fabrication works are on-schedule to be completed by the end of the fourth quarter of 2025. The First LNG Facility and supporting equipment will then be shipped to Saryozek, Kazakhstan for assembly and commissioning with LNG production expected in the second quarter of 2026. The Company is finalizing LNG off-taker agreements and advancing several additional third party financing solutions for the First LNG Facility.
As of June 30, 2025, the Company has incurred CAD $2.9 million of costs for the First LNG Facility including $2.2 million of property, plant and equipment and $0.7 million for the third natural gas allocation. The estimated additional costs to complete the First LNG Facility construction and commissioning is USD $24.4 million (CAD $33.3 million) including various ancillary equipment, feed gas hookup and piping, power generation, electrical infrastructure, and distribution equipment including storage tanks, LNG loading facilities and rolling stock.
In April 2025, the Company secured its third natural gas allocation that will provide LNG feed gas for the First LNG Facility. Two additional 48,000 gallon per day modular LNG facilities are planned for the First LNG Facility site to fully utilize the third natural gas allocation.
Condor's modular LNG facilities will be instrumental to supplying a stable, economic and more environmentally friendly fuel source for the Transcaspian International Transport Route ("TITR") expansion, which is currently the shortest, fastest and most geopolitically secure transit corridor for moving freight between Asia and Europe. The Government of Kazakhstan and Kazakhstan's national railroad are making significant investments in TITR infrastructure, including expanding the rail network, constructing a new dry port at the Kazakhstan, China border, and increasing the container-handling capacities at various Caspian Sea ports. Based on the Company's three natural gas allocations of 21,798 m3/hour, 29,110 m3/hour and 20,500 m3/hour, respectively, the total LNG fuel produced will have an energy-equivalent volume of 1.5 million litres of diesel daily, while also reducing CO2 emissions by 390,000 MT per year, which is equivalent to removing 85,000 cars from the road annually. See "Forward Looking Statements" in this news release for further discussion on the risks and uncertainties related to the natural gas allocations and the Company's LNG initiatives.
USD $5.0 Million Bridge Loan Financing
On August 12, 2025, the Company, through its subsidiary, entered a USD $5.0 million-dollar Bridge Loan for the First LNG Facility which is on schedule to produce Kazakhstan's first LNG in the second quarter of 2026. The Bridge Loan was provided by Eurasia Resource Value SE, an existing significant shareholder of the Company, and provides funding to continue purchasing long lead equipment for the First LNG Facility while third party project financing is being finalized. The Bridge Loan is unsecured, bears interest at 9.0% per annum, has no equity components or conversion features, has no financial covenants, requires no repayment of principal or interest payments until maturity, permits early repayment with no penalties or limitations, and matures on the earlier of March 30, 2026 and ten business days following the receipt of project financing for the First LNG Facility. The Bridge Loan's use of proceeds is for capital expenditures and general and administrative costs related to the construction and implementation of the First LNG Facility.
Critical Minerals Licenses in Kazakhstan
The Company holds a 100% working interest in two contiguous critical minerals mining licenses which provide subsurface exploration rights for solid minerals, including lithium and copper, for respective six-year terms. The 37,300- hectare Sayakbay license was awarded in July 2023 and the nearby 6,800-hectare Kolkuduk license was awarded in February 2025.
A prior well drilled in the Kolkuduk license territory for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of up to 130 milligrams per litre as reported by the Ministry of Geology of the Republic of Kazakhstan. A 1,000-meter column of tested and untested brine reservoir has been identified from historical wireline log and core data. At Sayakbay, a prior legacy well drilled for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of 67 milligrams per litre in Carboniferous-aged intervals as reported by the Ministry of Geology of the Republic of Kazakhstan. A 670-meter column of tested and untested brine reservoir has been identified from historical wireline log and core data. Other critical minerals identified at the Kolkuduk and Sayakbay licenses include rubidium, strontium and cesium.
The Company is not treating these historical estimates as current mineral resources or mineral reserves as additional drilling and testing is necessary, and a qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. It is uncertain if further drilling will result in either area being delineated as a mineral resource or reserve. The historical lithium concentration estimates should not be relied upon as indicative of the actual lithium concentration or the likelihood that the Company will be able to achieve similar production results.
The initial development plan for Sayakbay includes drilling and testing two wells to verify deliverability rates, confirming the lateral extension and concentrations of lithium in the tested and untested intervals, conducting preliminary engineering for the production facilities, and preparing a mineral resource or mineral reserves report compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Drilling at Sayakbay is not expected to commence until 2027 and the estimated costs for the initial development plan are USD $6.7 million (CAD $9.1 million). The initial development plan for the Kolkuduk license acquired in February 2025 has not as yet been determined.
RESULTS OF OPERATIONS
Production, Uzbekistan
Total Production
Three months ended June 30, 2025
Three months ended June 30, 2024
ChangeVolume
Natural gas (Mcf)
5,462,413
5,372,044
90,369
Natural gas (boe)
910,402
895,341
15,061
Condensate (barrels)
23,143
19,395
3,748
Total (boe)
933,545
914,736
18,809
Total Production
Six months ended June 30, 2025
Four months ended June 30, 2024*
ChangeVolume
Natural gas (Mcf)
11,304,929
7,399,949
3,904,980
Natural gas (boe)
1,884,155
1,233,325
650,830
Condensate (barrels)
55,586
27,585
28,001
Total (boe)
1,939,741
1,260,910
678,831
Daily Production
Three months ended June 30, 2025
Three months ended June 30, 2024
Change %
Natural gas (Mcf/d)
60,027
59,033
1.7
%
Natural gas (boe/d)
10,004
9,839
1.7
%
Condensate (bopd)
254
213
19.2
%
Total (boe/d)
10,258
10,052
2.0
%
Daily Production
Six months ended June 30, 2025
Four months ended June 30, 2024*
