Overview
Condor Energy (ASX:CND) is an Australia-based oil and gas exploration company focused on developing its recently acquired Tea LXXXVI oil and gas block in Peru, located in the Tumbes basin and near the prolific Talara basin. The project’s hydrocarbon exploration potential leverages Peru’s long history as an oil and gas producer dating back to the late 19th century when the country drilled its first well more than 150 years ago.
Hydrocarbon fields in the Tumbes and Talara basins have contributed over 1.4 billion barrels of domestic oil production and 1.7 trillion cubic feet (TCF) of natural gas production. The Talara basin itself has cumulatively produced more than 1.6 billion barrels of oil and is surrounded by multiple historic and currently producing oil and gas fields.
Condor Energy’s Tea LXXXVI project is the result of a technical evaluation agreement (TEA) with the Peruvian National Agency of Hydrocarbons (Perupetro), which provides Condor Energy and its partner, US-based oil and gas exploration company Jaguar Exploration, the exclusive right for greenfield exploration activities over the TEA area. Condor Energy holds an 80-percent interest in the asset with the remaining 20 percent held by Jaguar.
The project comprises a 4,858-square-kilometer oil and gas block in proven offshore hydrocarbon-bearing basins in Peru, including the prolific Talara basin. Offshore, Peru remains dramatically underexplored and has immense potential for hydrocarbon plays.
Considering the block’s potential, Condor Energy has appointed a world-class technical team with more than 200 years of collective experience to develop the TEA LXXXVI asset. Several of the newly appointed team members have previously worked on the area covered by Condor Energy, which should help in fast-tracking the development of the block. The team comprises proven oil finders with collective discoveries of more than 480 million barrels of oil equivalent of 2P reserves and more than 400 million barrels of oil equivalent in contingent resources in Peru and Colombia.
The experience of working in the TEA LXXXVI property and surrounding fields will be vital for Condor Energy to expedite the understanding and evaluation of the asset.
Company Highlights
- Condor Energy is an Australia-based oil and gas exploration company focused on developing its recently acquired oil and gas block in Peru, TEA LXXXVI
- The TEA LXXXVI project comprises a 4,858 square-kilometer oil and gas block in the proven Tumbes hydrocarbon-bearing basin offshore Peru. Condor Energy holds an 80 percent interest in the asset with the remaining 20 percent held by US-based oil and gas exploration company, Jaguar Exploration.
- The block is in proximity to multiple historic and current producing oil and gas fields. This includes the Corvina oil field, which has produced at rates of up to 4,000 barrels of oil per day, and the Alto-Pena Negra oil field which is currently producing around 3,000 barrels of oil per day, along with a total historical production of more than 143 million barrels of oil. This increases confidence regarding the hydrocarbon exploration potential of TEA LXXXVI.
- The company is undertaking a detailed work program on the project, including 3D seismic data processing, and geological and geophysical studies.
- A world-class technical team with more than 200 years of collective experience was appointed by Condor Energy to develop and advance the TEA LXXXVI offshore block.
- The company’s other projects include the Georgina Basin project (EP-127) and the Sasanof Prospect (WA-519-P).
Key Project
TEA LXXXVI Project
This oil and gas block is located on the northwest coast of Peru in the Tumbes basin, in water depths that range from 100 meters to 1,500 meters. The project spans 4,858 square kilometers and is surrounded by historical and current producing oil and gas fields. The block includes the Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day. In the south is the Talara basin, which is one of the most productive basins in Peru having produced more than 1.6 billion barrels of oil. To the southeast is the Alto-Pena Negra oil field, one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day and with a total historical production of more than 143 million barrels of oil.
The project benefits from excellent infrastructure, including a refinery only 70 kilometers away.
Project Highlights:
- Undrilled Area in a Proven Hydrocarbon Basin System: Exploration in the early 1970s showed the presence of oil. Historical data from 2D seismic surveys and more than 3,800 square kilometers of 3D seismic surveys are available for processing.
- Seismic Reprocessing Targeting Underway: Seismic reprocessing targeting has commenced at the extensive Bonito and Volador prospects in the southern portion of the company’s 4,585-square-kilometer offshore Peru oil and gas block.
- Piedra Redonda Contains ‘Best Estimate’ Contingent and Prospective Resources: Covered by the company’s license area is the Piedra Redonda that contains ‘best estimate’ contingent resources of 404 billion cubic feet plus best estimate prospective resources of 2.2 trillion cubic feet of gas audited by Netherland, Sewell & Associates.
- High Potential Bonito, Volador and Raya Prospects:
- Exploration activities showed additional deeper stacked targets identified in the proven oil-bearing Zorritos Formation at Bonito.
- The company also identified the large-scale stratigraphic and structural trap potential (up to 59 square kilometers of the Raya prospect and selected an area of 400 square kilometers as the second reprocessing area.
- The 40 square-kilometer Volador prospect was identified by anomalously bright amplitudes within the Cardalitos Formation, which unconformably overlies the Zorritos Formation.
Management Team
Matt Ireland – Non-executive Chairman
Matt Ireland, a partner at Steinepreis Paganin, is a highly experienced corporate and commercial lawyer with extensive experience in corporate governance and compliance matters as well as in mining and oil & gas transactions including joint venture agreements, M&A transactions, capital raisings and asset acquisitions/disposals. Ireland graduated from Murdoch University with a Bachelor of Laws and a Bachelor of Commerce in 2002 and was admitted to the Supreme Court of New South Wales in 2003 and the Supreme Court of Western Australia in 2004.
Scott Macmillan – Non-executive Director
Scott Macmillan is the managing director and founder of Invictus Energy Limited (ASX:IVZ) which, since listing on the ASX in 2018, has seen Invictus grow substantially in value from a microcap frontier explorer to an emerging oil and gas developer. Invictus Energy is an oil and gas company opening one of the last untested large fronter rift basins in onshore Africa. Macmillan is a reservoir engineer with more than 15 years of experience in oil and gas exploration, field development planning, reserves and resources assessment, reservoir simulation, commercial valuations and business development. Before founding Invictus, Macmillan worked as a senior reservoir engineer at Woodside Energy and AWE, during which time he participated in large offshore oil and gas field operations and the development of the Waitsia Gas Field.
Ricardo Garzon Rangel – Non-executive Director
Ricardo Garzon Rangel is an industrial engineer and energy economist with over 15 years international experience in oil and gas and mineral exploration projects. As a dual Australian and Colombian citizen, Garzon Rangel has a depth of experience in Latin America and has a proven ability to establish relationships with governments and other industry participants.
Garzon Rangel has a Bachelor degree of Industrial Engineering from Universidad Distrital Francisco Jose de Caldas in Bogotá Colombia, an MSc in Energy Economics and Management from Curtin University and is a member of the Society of Petroleum Engineers (SPE).
Lloyd Flint – Company Secretary
Lloyd Flint, BAcc, FINSIA and MBA is a chartered accountant with over 25 years’ experience in the corporate and financial services arena. He has held a number of management and senior administrative positions as well as providing corporate advisory services as a consultant to corporate clients.
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