Condor Energies, a Canadian based, internationally focused energy transition company focused on Central Asia, has announced the release of its audited consolidated financial statements for the years ended December 31, 2025 and 2024 (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 fourth quarter of 2025 averaged 10,534 boe/d comprised of 10,218 boe/d (61,310 Mcf/d) of natural gas and 316 bopd of condensate or a total production increase of 5.6% from the third quarter of 2025. Uzbekistan natural gas and condensate sales for the fourth quarter of 2025 was $20.38 million or an 8.8% increase from the third quarter of 2025.
- Production in Uzbekistan for the year ended December 31, 2025 averaged 10,484 boe/d comprised of 10,202 boe/d (61,213 Mcf/d) of natural gas and 282 bopd of condensate. Uzbekistan natural gas and condensate sales for 2025 was $80.66 million.
- A multi-well drilling program commenced in Uzbekistan in September 2025 with two horizontal and one vertical well drilled to date. Two of the wells (one horizontal and one vertical) have been completed and were tested at a combined rate of 2,096 boe/d (12.6 MMcf/d) with completion activities underway for the other horizontal well. Drilling of the next horizontal well is ongoing and currently at 2,335 meters with the well estimated to be completed and tested by mid-April 2026.
- March 2026 month-to-date production has averaged 12,622 boe/d comprised of 12,274 boe/d (73.6 MMcf/d) of natural gas and 348 bopd of condensate and is primarily due to the completion of the newly drilled wells.
- A tendering process is underway to install the first phase of a field booster compression program in Uzbekistan, and the contract is expected to be awarded in the second quarter of 2026. Field booster compression is expected to increase gas production rates by lowering the gathering system pressure.
- The Company completed fabrication of its first LNG liquefaction facility in March 2026 (the “First LNG Facility”) and is undergoing function and acceptance testing prior to shipment to Kazakhstan, which is expected in the second quarter of 2026.
- On April 15, 2025, the Company secured its third natural gas allocation in Kazakhstan for LNG feed gas, a portion of which will be allocated to the First LNG Facility.
- On August 12, 2025, the Company established a USD $5.0 million bridge loan facility (the “Bridge Loan”) for the First LNG Facility which was originally set to mature on the earlier of March 30, 2026, and ten business days following the receipt of third-party project financing for the First LNG Facility. In March 2026, the Bridge Loan maturity date was extended to July 15, 2026, with all other terms remaining unchanged.
- On December 24, 2025, the Company completed a brokered private placement of convertible debentures for aggregate gross proceeds of $13.65 million, less cash issue costs of $1.06 million, which will be used to accelerate development activities and in-field compression facilities in Uzbekistan.
- The Company entered into a share purchase agreement on January 21, 2026, with a third-party buyer to sell the shares of the Company’s wholly owned subsidiary which holds the Poyraz Ridge and Destan operating licenses and gas fields in Türkiye for a ten-year gross overriding royalty and a nominal cash payment.
MESSAGE FROM CONDOR’S CEO
Don Streu, President and CEO of Condor commented: 'It’s been a transformational year for Condor as indicated by the numerous performance accomplishments noted above. Our current activities in Uzbekistan are providing sustainable growth for reserves, production, and cashflow while we concurrently advance our LNG fuel substitution project and our early-stage copper and lithium critical minerals opportunities in Kazakhstan. The divestiture of our Turkish holdings is consistent with management’s focus on higher-return growth initiatives.
We’ve demonstrated the successful application of proven Western technologies in Uzbekistan, including drilling horizontal wells, and are continuing to create material value as confirmed by this month’s to-date average daily production rate, which has already increased by 20% from 2025’s average daily production rate. This increase is despite the reservoir’s natural decline rate of more than 20% per year. Not only has the team drilled Uzbekistan’s longest horizontal well, but we’re also realizing a continual reduction in cost and drilling days with each successive well. Our reprocessed 3-D seismic has already identified numerous undrilled structures with multiple infill, undrained attic closures that has generated a new drilling inventory of over 50 wells.
A major LNG milestone was also recently achieved by completing fabrication of the First LNG Facility, and we look forward to shipping it next quarter for assembly in Kazakhstan. Due diligence work is ongoing with multiple third-party finance groups to finalize definitive agreements for the First LNG Facility. Having already secured three LNG feed gas allocations, Condor is uniquely positioned to benefit as the LNG industry evolves in Kazakhstan. The recent surge in activity related to Kazakhstan’s critical minerals, including copper and lithium, also bodes well for potential growth in that market, especially given the strategic location of Condor’s two critical minerals licenses to neighboring China.
We are very excited and well positioned to continue building strong, near-term shareholder value from our diverse energy transition portfolio'.
Production in Uzbekistan
The Company operates under a production enhancement services contract with JSC Uzbekneftegaz ('UNG') 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'). The cumulative license area is 282 km2 or the equivalent of 109 sections, with 71 active gas wells that produce mainly from a Jurassic Carbonate reservoir. Production in the fourth quarter of 2025 averaged 10,534 boe/d comprised of 10,218 boe/d (61,310 Mcf/d) of natural gas and 316 bopd of condensate or a total production increase of 5.6% compared to the third quarter of 2025 due mainly to successful workovers. March 2026 month-to-date production has averaged 12,622 boe/d comprised of 12,274 boe/d (73.6 MMcf/d) of natural gas and 348 bopd of condensate and is primarily due to the completion of the newly drilled wells.
In 2025, the Company reprocessed and interpreted 1,462 km2 of existing 3-D seismic data which has already identified more than 40 potential drilling locations. Drilling operations commenced in September 2025, and three wells have been drilled to date: two horizontal wells in the Andakli field (A-23 and A-21) and one vertical in the previously unidentified Kumli NW structure (K-45). The A-21 well was drilled with a 1,279-meter lateral section and a well test was conducted at a stabilized flowing rate of 7.3 MMscf/d (or 1,213 boe/d) through a 5/8” choke at a flowing tubing pressure of 722 psi for a two-hour period. The K-45 vertical well was drilled to a total depth of 2,410 meters and a well test was conducted at a stabilized flowing rate of 5.3 MMscf/d (or 883 boe/d) through a 1/2” choke at a flowing tubing pressure of 1,053 psi for seven hours. Both wells were tied into the production facilities immediately after testing. The A-23 horizontal well was drilled with a 1,007-meter lateral section and was recently completed with gas volumes flowing to surface. A faulty piece of completion equipment is being replaced before the well is tested and put into service.
Drilling of a fourth well, K-46 horizontal, started in late February 2026 on the same pad as K-45 and targets up to a 1,000-meter lateral section in the same reservoir. Based on K-45 results, the K-46 target pay section should also be dolomitized, which enhances the reservoir porosities and permeabilities and should contain an even higher reservoir quality compared to A-21 and A-23. Given the strong K-45 flow test results, the near virgin reservoir pressures observed, higher reservoir porosities than previously encountered, and the fact that horizontal wells often produce at two to four times the rate of vertical wells, the K-46 well could materially grow near term production rates. To date, K-46 has been drilled to 2,335 meters and intermediate casing set with completion and testing targeted for mid-April 2026.
Beyond the development of the Kumli NW structure, similar lightly developed structures have been identified from the Company’s reprocessed 3-D seismic survey including the Kushimcha, Sharkiy Khatar, North Syuzma, and Kumli Central structures. Technical work is ongoing to estimate recoverable gas volumes and optimize well placements. These fields will be developed using a combination of vertical and horizontal wells later in 2026 and beyond. Of note is that the vertical wells will penetrate the deeper Jurassic clastics play, which is very lightly developed with promising upside. Two of the Company’s highest daily gas rate wells are producing from this play at North Syuzma, and the Company plans to further delineate this play with the 2026 drilling program.
As noted above, the Company contracted the first drilling rig in September 2025 and drilled the A-23 and A-21 horizontal wells. A second drilling rig was contracted in December 2025, which drilled the K-45 vertical well and is now drilling the K-46 horizontal well. Multiple mechanical failures and significant nonproductive time were encountered by the first rig while drilling the A-23 and A-21 wells and this contract was recently terminated. The Company is actively sourcing a replacement rig with plans to drill up to twelve wells in 2026 to accelerate gas production volumes.
Installation of field booster compression remains a top priority for the Company in 2026. The tendering process is underway for the first phase with the contract expected to be awarded in the second quarter of 2026. Booster compression is expected to increase gas production by lowering the gathering system pressure, mitigating liquid loading effects in wellbores, and helping to manage the impact of fluctuating and increasing gas sales line pressures. Simulation work conducted by an independent third-party engineering company indicates compression could yield over 20 MMscf/d of incremental gas production and extend end-of-field life. The field compression facility is scheduled to be commissioned in the first quarter of 2027.
LNG in Kazakhstan
The Company has completed fabrication works on its First LNG Facility for the Saryozek plant site (the “Saryozek Site”) and it is currently undergoing function and acceptance testing prior to its shipment to Kazakhstan in the second quarter of 2026. The Company expects to produce, distribute, and sell LNG to offset industrial diesel usage in Kazakhstan and end-user applications include rail locomotives, long-haul truck fleets, marine vessels, mining equipment, municipal bus fleets, and high-horsepower heavy equipment and machinery. All these LNG applications have successfully been implemented in other countries. LNG production is expected to commence late in the fourth quarter of 2026.
The First LNG Facility is expected to have an initial production capacity of 48,000 gallons (80 MT) of LNG per day, and due to its modular design, production at the Saryozek Site will subsequently be expanded by two additional 48,000 gallon per day facilities to fully utilize the gas allocation awarded for this site. The Saryozek Site is one of the three natural gas allocations awarded to the Company in Kazakhstan. The Company has secured 20 hectares of land at the Saryozek Site until July 2059 under an agreement which requires the Company to construct an LNG facility at the site prior to August 2030. The Company is also finalizing LNG off-taker agreements.
The Company is advancing third-party financing discussions to complete the First LNG Facility, and the Company may enter into one or more partnerships (or other joint venture structures) at its sites in Kazakhstan where it has already secured feed gas allocations (including the First LNG Facility).
As of December 31, 2025, the Company has incurred CAD $8.5 million of costs for the First LNG Facility, including $7.8 million for 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 $22.7 million (CAD $31.1 million) which includes various ancillary equipment, feed gas hookup and piping, power generation, electrical infrastructure, distribution equipment and storage tanks, LNG loading facilities and rolling stock.
Condor has received three natural gas allocations at three different locations within Kazakhstan, and the Company plans to construct modular LNG facilities at all three locations. Based on the natural gas allocations of 21,798 m3/hour, 29,110 m3/hour and 20,500 m3/hour, respectively, the total potential LNG fuel produced would 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 MD&A for further discussion on the risks and uncertainties related to the natural gas allocations and the Company’s LNG initiatives.
Click here for full announcement
Source: Condor Energies
