Condor Energies, a Canadian-based, internationally-focused energy transition company, has released its unaudited interim condensed consolidated financial statements for the three months ended March 31.
Condor executed a production enhancement services contract in January 2024 aimed at boosting natural gas production and recovery rates from eight conventional natural gas-condensate fields in Uzbekistan. Operations under this contract commenced on March 1, with impressive results.
March 2024 production from Uzbekistan reached 11,167 barrels of oil equivalent per day (boe/d), comprising 65,416 cubic feet per day (Mcf/d) (10,903 boe/d) of natural gas and 264 barrels of oil per day (bopd) of condensate. The sales from this production amounted to $7.2mn for the month.
The contract with a national holding company of Uzbekistan covers a 279 km² license area with 77 active wells and 39 shut-in or suspended wells poised for reactivation. Condor plans to employ advanced technologies and techniques to enhance production further, including artificial lift and infill drilling programs. Data collection and seismic studies are underway to identify additional enhancement opportunities, with a reserve report to be completed by year-end 2024.
Condor is also making strides in Kazakhstan, having secured a natural gas allocation from the government in January 2024 for its first modular liquefied natural gas (LNG) production facility. This facility is expected to produce up to 350 tonnes per day (210,000 gallons per day) of LNG, which will replace diesel fuel for rail locomotives and mine haul trucks, thereby reducing carbon emissions. Engineering and land acquisition for the project is complete, and detailed engineering will begin this year.
This LNG initiative aligns with Kazakhstan's strategy to expand the Trans-Caspian International Transport Route, offering a low-carbon fuel alternative for increased rail and truck traffic between China and the Caspian Sea.
Further diversifying its portfolio, Condor holds a 100% working interest in a 37,300-hectare area in Kazakhstan for lithium exploration. The company plans to employ Direct Lithium Extraction (DLE) technologies, which have a smaller environmental footprint compared to traditional methods. Initial development includes drilling and testing to confirm lithium concentrations and preparing a resource report compliant with National Instrument 43-101 standards. Condor is also considering renewable energy projects to support a net-zero emissions goal for its lithium operations.
On March 22, 2024, Condor issued three-year term convertible debentures worth $4.8mn (CAD $6.5mn). These debentures, which bear 9% interest per annum, are convertible into 2,950,336 common shares. The net proceeds of CAD $6.3mn will be used for general corporate purposes. The debentures are convertible at a price of $1.6 per share, and the company may force conversion if its share price exceeds CAD $3.00 for a specified period.
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