Condor Energies provides Uzbekistan update, announces Turkish asset sale

Condor Energies (CNPRF) provided an update on its Uzbekistan and Turkiye projects. The Company’s second well of its multi-well campaign, Andakli-21, has reached TD at 3456 meters which includes 1279 meters of open hole lateral section, setting a record for the longest horizontal drilled in Uzbekistan. The A-21 well was successfully geo-steered to intersect over 960 meters of carbonate reservoir as defined by drill cuttings and containing greater than 6% visible porosity. Reservoir quality exceeded pre-drill expectations with 223 meters of the lateral section containing up to 12% visible porosity observed in cuttings. These reservoir intervals were accompanied by significant gas shows, many ranging from 20% up to 31%, which represents the gas volume entrained in the drilling fluid from the drill cuttings. Preparations are underway to perform an acid stimulation in the entire A-21 lateral section designed to remove any near wellbore drilling fluid invasion and further enhance productivity, as was done on the same carbonate zone in the vertical pilot wellbore of the previously drilled Andakli A-23, where production rates increased eight to ten fold post-acid stimulation. Once acid stimulation is complete, the A-21 well will be flow tested and brought onto production, which is expected to occur in the second half of February 2026. Afterwards, the 1007-meter lateral section of the A-23 well will also be acid stimulated, tested and brought online. Both acid stimulations will be conducted using small diameter tubulars while a larger diameter coil tubing unit is mobilized to site later in the first quarter of 2026. The Company is concurrently operating a second drilling rig to drill its third well in Uzbekistan in an underdeveloped portion of the Kumli gas field. Kumli-45 is a vertical well with a planned TD of 2400 meters and targets multiple reservoirs. An 18-meter core has been recovered from one of the target zones at 2150 meters and will be exported to Canada for special core analysis. The core is expected to provide valuable information on reservoir parameters, and the K-45 logging will calibrate regional wireline log data to assist with development planning and prioritize a subsequent drilling campaign of up to six horizontal wells from this pad. K-45 is planned to be tested in February 2006 after logging and casing operations are completed. In addition, the Company plans to construct a second drilling pad in another undeveloped portion of the Kumli field in the first quarter of 2026 for drilling one additional vertical and up to six additional horizontal wells. The Company entered into a share purchase agreement on January 21, 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 Turkiye for a ten-year gross overriding royalty and a nominal cash payment. The transaction is subject to customary Turkish government approvals for a transaction of this nature and completion shall occur within ten business days of receiving the Government Approvals. The SPA includes a gross overriding royalty at rates ranging from zero to 15% depending on average daily production volumes and calculated as sales revenues less government royalties and less transportation costs for a period of ten years subject to an aggregate cap of $10M and a cash consideration of 18,000 Euros due on the Closing Date. There was no cash payment due on the Signing Date. Subject to certain considerations, the Buyer is required to perform a minimum work commitment which includes conducting various workover activities and drilling one new well on the Turkish Properties. Commencing sixty days following the Signing Date, the Buyer is also responsible for all operating expenditures until the Completion Date including production costs, general and administrative expenses and taxes.