Condor Energy Finalizes Technical Evaluation Early, Secures Full Ownership of Offshore Peru Licence TEA 86

Technical Evaluation Completion and Licence Conversion Application Submitted

Condor Energy has completed all Technical Evaluation Agreement work on TEA 86 ahead of the planned schedule, marking a major milestone. The comprehensive technical programme included seismic reprocessing, prospect mapping, resource evaluation, depositional system analysis, and petroleum systems modelling, significantly enhancing understanding of the offshore Tumbes Basin and establishing a solid technical foundation for future operations.

Following this, Condor submitted an application to PeruPetro S.A. to convert TEA 86 into an Exploration and Exploitation Licence Contract. This transition from evaluation to operatorship provides the contractual framework and extended tenure needed to advance exploration, appraisal, development, and commercialisation activities. Approval will enable Condor to progress strategic partnerships, exploration drilling, and project financing across the licence area, marking a critical step toward operational development of its offshore Peru assets.

Full Ownership Consolidation and Resource Growth

During the quarter, Condor Energy acquired Jaguar Exploration’s participating interest, consolidating its ownership of TEA 86 to 100%. This streamlined ownership structure enhances operational flexibility and strengthens Condor’s position in forthcoming commercial negotiations and strategic partnerships.

With full ownership, Condor’s net attributable prospective oil resources now exceed 3.3 billion barrels (2U), alongside 1 Tcf (2C) of contingent gas resources within the 4,858 square kilometre licence area. The integrated technical work confirmed an active petroleum system, hydrocarbon generation timing aligned with mapped prospects, improved reservoir and depositional system understanding, and identified over 20 exploration leads and prospects. This expanded resource base positions Condor to fully capitalize on exploration and commercial opportunities in offshore Peru.

Discovery of Over 20 Exploration Leads and Prospects in Tumbes Basin

The Technical Evaluation Agreement programme uncovered more than 20 exploration leads and prospects across TEA 86. These opportunities emerged from detailed seismic reprocessing and petroleum systems analysis, supported by enhanced geological insights into reservoir distribution and depositional environments within the confirmed active petroleum system.

This robust portfolio of exploration targets provides multiple drilling options, reducing risk concentration and offering flexibility for future exploration campaigns, contingent on successful licence conversion. The technical work reinforces confidence in key geological factors essential for hydrocarbon accumulation, laying a strong groundwork for upcoming exploration phases.

Active Strategic Partnering with Industry Stakeholders

Throughout the quarter, Condor engaged multiple industry participants progressing technical and commercial due diligence via a virtual data room. These discussions focus on participation in the offshore Peru portfolio post-licence conversion. The virtual data room facilitates access to comprehensive technical data, supporting an organized partnering process alongside licence conversion and commercialisation activities.

Strategic partnerships are central to Condor’s capital and risk management strategy, aiming to secure expertise, operational capacity, and funding for exploration, appraisal, and development in TEA 86. These discussions align with the licence contract application, positioning Condor to finalize partnerships upon PeruPetro approval. Management continues active engagement with potential partners as regulatory processes advance.

Piedra Redonda Gas Discovery Commercialisation Progress

Condor maintained commercialisation talks for the Piedra Redonda gas discovery, a key asset within its offshore Peru portfolio. Management visits to Peru and Ecuador included meetings with PeruPetro, government officials, potential gas customers, and industry players to advance licence conversion, commercial discussions, and strategic partnerships. The engagement with multiple prospective gas buyers highlights the asset’s commercial potential amid rising regional gas demand.

These commercial discussions run in parallel with the licence conversion application and strategic partnering process, allowing Condor to synchronize technical, commercial, and regulatory efforts toward potential development. The company’s direct dialogue with government and industry stakeholders underscores the project’s multi-faceted development pathway. In the context of increasing South American focus on energy security and domestic gas supply, Condor’s Piedra Redonda asset holds strategic regional importance.

Capital Raise to Fuel Licence Conversion and Exploration

In the June 2026 quarter, Condor completed a placement raising approximately A$2.25 million, supported by new and existing institutional, professional, and sophisticated investors. While specific fund allocation was not detailed, proceeds will support licence conversion, exploration, and gas commercialisation activities. This capital injection strengthens Condor’s financial position to advance operational priorities in its offshore Peru portfolio.

The raise coincides with Condor’s transition from the Technical Evaluation Agreement phase to the Exploration and Exploitation Licence Contract phase, providing flexibility to engage with PeruPetro, plan exploration, and continue commercial discussions. Investor confidence reflected in the raise supports timely responses to partnership opportunities and exploration activities as licence approval progresses.

South American Energy Security Drives Market Opportunity

Energy security and domestic gas supply are critical priorities across South America, prompting increased investment from governments and energy companies. This regional focus creates a favorable environment for Condor’s offshore Peru assets, anchored by the Piedra Redonda gas discovery and supported by significant exploration potential. The timing of Condor’s licence conversion, strategic partnerships, and commercialisation efforts aligns with this trend, enhancing the portfolio’s strategic and commercial appeal.

Active government efforts to secure gas supply and improve energy security have attracted major energy companies and prospective customers to Condor’s commercial discussions. The company’s engagement with officials in Peru and Ecuador highlights the importance of government relationships in advancing licence conversion and commercialisation. Holding a substantial offshore Peru asset with exploration upside and a gas discovery positions Condor as a strategically relevant player for both government stakeholders and industry participants.

Regulatory Approval Process and Licence Contract Timeline

Conversion of TEA 86 into an Exploration and Exploitation Licence Contract requires PeruPetro S.A.’s approval. Condor submitted its application after completing all Technical Evaluation Agreement commitments. The company has not disclosed a timeline for PeruPetro’s review and approval. The approval will enable Condor to transition formally to operatorship and execute exploration, appraisal, and development activities under the new licence framework. Investors should monitor updates on the licence contract approval process.

The Technical Evaluation Agreement phase involved specific work commitments, which Condor completed ahead of schedule, demonstrating its technical and operational capabilities. Transitioning to the Exploration and Exploitation Licence Contract phase will grant longer-term tenure and a broader contractual framework. Approval by PeruPetro is a pivotal regulatory milestone unlocking the next stage of Condor’s portfolio development. The company has prepared for this by completing technical work, consolidating ownership, and raising capital.

Upcoming Milestones for Investors

Key developments for investors include PeruPetro’s approval of the Exploration and Exploitation Licence Contract application, which will enable Condor to finalize strategic partnerships, advance exploration plans, and develop the Piedra Redonda gas discovery. The company’s ongoing engagement with multiple prospective partners suggests partnership announcements may follow licence approval. Progress in gas commercialisation would also indicate material advancement toward development and production.

Condor’s broad engagement—with PeruPetro on licence conversion, with partners on strategic participation, with gas customers on commercialisation, and with governments on policy—means developments in any area could impact portfolio value. The identification of over 20 exploration leads offers multiple drilling prospects as exploration strategies and partnerships mature. The company’s early technical completion and strong capital raise reflect operational and investor confidence, supporting potential announcements as regulatory approval advances.