Condor Signs a Production Enhancement Contract for Eight (8) Producing Gas-Condensate Fields in the Republic of Uzbekistan

CALGARY, Alberta, Jan. 31, 2024 (GLOBE NEWSWIRE) -- Condor Energies Inc. (“Condor” or the “Company”) (TSX: CDR), a Canadian based energy transition company is pleased to announce that it has entered into a production enhancement contract (the “Project”) with the Uzbekistan government to increase the production and overall recovery rates from an integrated cluster of eight conventional natural gas-condensate fields in the country (the “Fields”). The Project will increase the country’s domestic supply of natural gas while also contributing to carbon emissions reductions.

Condor, through a local subsidiary, will conduct the production enhancement services under an agreement with the national company, JSC “Uzbekneftegaz (“UNG”). Natural gas will be sold to the authorized state entity responsible for the purchase and sale of natural gas for use in the domestic market. Condor will be responsible for all costs of the Project, and in exchange for performing its services, the Company will receive a percentage of net revenues realized from the Project.

The Fields consist of stacked carbonate and clastic reservoirs that are geologically similar to those in the Western Canadian Sedimentary Basin. The Fields are experiencing high annual decline rates and low recovery factors which the Company intends to mitigate while also reducing carbon emissions by introducing proven modern technologies and operating techniques. Production increases are planned by implementing artificial lift, workover and infill drilling programs and investigating deeper horizons in the Fields that are productive in other regions of the country. Seismic reprocessing and a 3-D seismic program are also planned to support these efforts.

The Company expects to commence operations in the first quarter of 2024 after an environmental baseline audit and technical inspections are completed. There are no local communities or environmentally sensitive areas in proximity to the Fields. Additional reservoir and production data will be collected in the near term and a National Instrument 51-101 compliant reserves report will be completed thereafter.

Don Streu, President and CEO of Condor commented: “We are very excited about this investment opportunity and are honored to be selected as UNG’s first Western strategic operating partner to contribute to increasing Uzbekistan’s natural gas production rates and recoverable reserves. Our plan will introduce proven technologies, mature field optimization practices, reduce carbon emissions, and take advantage of Condor’s long-standing regional presence and experience. In addition to the production fees paid to UNG, it will also benefit from being able to deploy its capital and the Company’s proven technologies to its core projects. The Uzbekistan government will benefit from increased taxes and royalties derived from the increased gas production and additional foreign investment. The local communities will benefit from increased employment and skills-training.