Condor Energy Ltd Confirms Major Deepwater Reservoir Discovery Offshore Peru

Condor Energy Unlocks Major Deepwater Reservoir Discovery in Peru

Condor Energy Ltd (ASX: CND) has achieved a significant breakthrough in its Technical Evaluation Agreement (TEA-86) area offshore Peru, identifying large-scale deepwater reservoir systems comparable to those hosting world-class discoveries in Namibia, Guyana, and Angola. The deepwater reservoir discovery by Condor Energy Ltd represents a pivotal moment in the company's exploration strategy, establishing a clear pathway toward drilling exploration wells.

The integrated technical studies have addressed a key exploration uncertainty whilst providing strong evidence for turbidite reservoirs across the company's acreage. Furthermore, this achievement marks a transformational development for Condor's position in Peru's underexplored offshore basins.

Managing Director Serge Hayon emphasised the significance of these results, stating that "the latest phase of our work programme has addressed a key exploration uncertainty relating to the presence and distribution of deepwater reservoir systems, with results providing strong evidence for turbidite reservoirs across our acreage."

Key Technical Breakthrough Reduces Exploration Risk

The company's accelerated technical work programme has delivered exceptional results through integrated subsurface studies. These comprehensive analyses combine multiple advanced methodologies to provide robust geological interpretation across the TEA-86 area.

The technical programme incorporated several critical components:

• Advanced seismic attribute analysis
• Geological and geophysical studies
• Regional well calibration using data from more than 60 wells
• Seismic facies interpretation

These studies have identified basin-scale sediment transport systems and deepwater fan-style depositional geometries across TEA-86, interpreted as turbidite reservoir systems. Moreover, the depositional fairways extend across areas containing Condor's existing exploration prospects, supporting the presence of sand-rich reservoirs directly overlying mature source rocks.

World-Class Analogues Support Massive Potential

The identified deepwater systems are directly analogous to those hosting major offshore discoveries globally. These comparable systems have delivered some of the most significant hydrocarbon discoveries in recent decades.

Key analogous discoveries include:

• Venus discovery offshore Namibia
• Major discoveries in Guyana and Suriname
• Significant finds in Angola's deepwater basins

These turbidite reservoir systems represent the primary target for world-class offshore discoveries worldwide. Additionally, basin floor fan reservoirs developed above mature source rocks form the foundation of billion-barrel accumulations.

The deepwater reservoir discovery by Condor Energy Ltd demonstrates how these geological formations can host significant hydrocarbon accumulations in underexplored basins. As Serge Hayon noted, "These systems underpin many of the world's most significant offshore discoveries, including those in Namibia, Guyana, Suriname and Angola, and materially enhance the potential of our exploration portfolio."

What Are Turbidite Reservoir Systems?

Turbidite reservoirs are formed when sediment-rich underwater currents flow down continental slopes, depositing sand-rich layers in deep ocean basins. These systems represent some of the most prolific hydrocarbon reservoirs globally.

The formation process creates several advantageous characteristics:

• Laterally extensive reservoir bodies with enhanced characteristics
• High-quality sand reservoirs through winnowing and reworking processes
• Direct hydrocarbon migration pathways from underlying source rocks

For investors, turbidite systems offer the potential for large-scale discoveries with excellent reservoir quality and commercial viability. However, their identification requires sophisticated geological analysis and advanced seismic interpretation techniques.

How Does This Discovery Position Condor Energy?

The technical breakthrough supports Condor's progression toward exploration Licence Contract conversion application, representing a critical regulatory milestone. This progression establishes several important foundations for future development.

The conversion process will establish:

• Defined work programme for exploration activities
• Regulatory framework for drilling operations
• Clear pathway toward exploration well drilling

Furthermore, the final component of the TEA work programme – 1D basin modelling – is currently underway. This modelling will complete the technical foundation required for licence conversion.

Strategic Portfolio Enhancement

Current Asset Base

Resource Portfolio

The identification of extensive reservoir systems materially enhances the potential of Condor's multi-billion barrel exploration portfolio. In addition, this provides stronger geological confidence for the five major prospects: Bonito, Raya, Salmon, Caballa, and Tiburon.

The deepwater reservoir discovery by Condor Energy Ltd validates the company's systematic approach to basin-scale geological evaluation. This comprehensive methodology has proven effective in identifying world-class reservoir systems in underexplored regions.

Investment Thesis Strengthened

This technical breakthrough fundamentally strengthens Condor's investment proposition through multiple value drivers. The confirmation of extensive reservoir systems addresses key geological uncertainties whilst establishing a foundation for future exploration success.

Risk Reduction

• Key exploration uncertainty regarding reservoir presence addressed
• Geological confidence significantly enhanced across prospect portfolio
• Technical foundation established for drilling progression

World-Class Potential

• Analogous systems to major global discoveries confirmed
• Basin-scale depositional systems supporting large accumulation potential
• Enhanced prospectivity across existing multi-billion barrel resource base

Balanced Strategy

• Near-term commercialisation pathway via Piedra Redonda gas discovery
• Long-term exploration upside through confirmed deepwater reservoir systems
• Strategic positioning in underexplored basin with established petroleum system

Technical Analysis Reveals Scale of Discovery

The integrated seismic and geological studies utilised multiple advanced techniques to map reservoir distribution across the TEA-86 area. The analysis focussed primarily on the Miocene Zorritos Formation, the principal exploration target, whilst evaluating secondary reservoir intervals.

Key Analytical Methods

• Seismic attribute mapping delineated feeder channels and basin floor fan systems
• Amplitude versus offset (AVO) analysis identified hydrocarbon indicators
• Depositional environment modelling reconstructed sediment transport pathways
• Geological calibration integrated data from over 60 regional wells

The analysis confirms that sediment transport pathways delivered sand-rich material from coastal environments into deeper basin areas. These pathways formed laterally extensive depositional systems across the exploration area.

These fan-shaped geological structures appear as sand-rich bodies deposited by gravity-driven sediment flows along the continental slope and basin floor. Consequently, these formations provide ideal conditions for hydrocarbon accumulation and preservation.

Why Should Investors Monitor Condor Energy?

Condor Energy has positioned itself as a compelling investment opportunity in the offshore exploration sector. The company combines near-term development potential with world-class exploration upside, creating a balanced risk-reward profile.

The deepwater reservoir discovery by Condor Energy Ltd addresses fundamental geological risks whilst maintaining exceptional upside potential. Moreover, the confirmation of extensive reservoir systems establishes a clear pathway toward high-impact drilling operations.

Key Tracking Points

1. Licence Contract Conversion – Critical regulatory milestone enabling drilling
2. 1D Basin Modelling Completion – Final technical component supporting conversion application
3. Exploration Well Planning – Progression toward high-impact drilling programme
4. Piedra Redonda Development – Near-term commercialisation providing cash flow foundation

The identification of large-scale deepwater reservoir systems comparable to world-class discoveries represents a transformational development for Condor's exploration strategy. This breakthrough significantly de-risks the geological framework whilst maintaining exceptional upside potential across its multi-billion barrel prospect portfolio.

The combination of established petroleum systems, proven reservoir presence, and analogous geological settings to major global discoveries positions Condor Energy as a compelling exploration story. Furthermore, Peru's underexplored offshore basins provide significant potential for additional discoveries using similar geological concepts.

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