Condor Energies, a Canadian-based energy transition company, announced the signing of a production enhancement contract with the Uzbekistan government on January 31, Condor Energies reported. This strategic initiative aims to boost production and overall recovery rates from an integrated cluster of eight conventional natural gas-condensate fields in Uzbekistan. The project, in collaboration with Uzbekneftegaz ("UNG"), the national oil and gas company, aligns with Uzbekistan's goals of increasing domestic natural gas supply and reducing carbon emissions.
Condor, operating through a local subsidiary, will undertake production enhancement services as per the agreement with UNG. The natural gas extracted will be sold to the authorized state entity responsible for natural gas purchase and sale within the domestic market. Condor assumes responsibility for all project costs and, in return for its services, will receive a percentage of the net revenues generated by the project.
The Fields, characterized by stacked carbonate and clastic reservoirs similar to those in the Western Canadian Sedimentary Basin, face high annual decline rates and low recovery factors. Condor plans to address these challenges by introducing modern technologies and operating techniques to enhance production and decrease carbon emissions. The strategy includes implementing artificial lift, workover, and infill drilling programs, as well as exploring deeper horizons in the Fields. Seismic reprocessing and a 3-D seismic program will support these efforts.
Operations are set to commence in the first quarter of 2024, pending the completion of an environmental baseline audit and technical inspections. The Fields are located away from local communities or environmentally sensitive areas. The company plans to collect additional reservoir and production data, with a National Instrument 51-101 compliant reserves report to follow.
Don Streu, President and CEO of Condor, expressed excitement about the investment opportunity, highlighting Condor's selection as UNG's first Western strategic operating partner. Streu emphasized the plan's focus on proven technologies, mature field optimization practices, and carbon emission reduction. The initiative is expected to contribute not only to increased gas production but also to enhanced taxes and royalties for the Uzbekistan government and added foreign investment. Local communities stand to benefit through increased employment and skills training.
Condor Energies' involvement in Uzbekistan complements its recent milestones in Kazakhstan, including securing feed gas allocation for its first LNG project and the award of its initial lithium brine project. The company's proactive engagement in Uzbekistan positions it as a key player for continued growth, with potential expansions into additional gas revitalization projects, LNG applications, and exploration opportunities.
ABOUT UZBEKISTAN
Uzbekistan stands as a resource-rich nation, ranking 17th globally in natural gas production and holding the title of the world's second-largest gold producer from a single mine. The government's comprehensive reforms have stimulated economic revitalization, attracting a tenfold increase in international investment over the past six years. Despite a growing focus on sustainable energy and rapid growth in renewable power production, natural gas remains a crucial transition fuel for power generation and heating. The government's priority is to increase production and maximize recoveries from existing fields.
ABOUT CONDOR ENERGIES
Condor Energies is a TSX-listed energy transition developer concentrating on diverse initiatives in Central Asia and Turkey. With existing gas assets, an ongoing project for Central Asia's inaugural LNG facility, and a separate venture for lithium brine development, the company aims for reserves, production, and cash flow growth while minimizing its environmental impact.
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