HIGHLIGHTS
- The Company executed a production enhancement services contract in
January 2024 to increase natural gas production and overall recovery rates from eight conventional natural gas-condensate fields inUzbekistan and the Company commenced operations onMarch 1, 2024 . March 2024 production fromUzbekistan was 11,167 boe/d comprised of 65,416 Mcf/d (10,903 boe/d) of natural gas and 264 bopd of condensate.March 2024 sales fromUzbekistan production was$7.2 million .- The Company received a natural gas allocation in
January 2024 inKazakhstan to be used as feed gas for the Company’s first modular liquefied natural gas (“LNG”) production facility. - On
March 22, 2024 , the Company issued three-year term convertible debentures bearing 9% interest per annum and convertible into 2,950,336 common shares for gross proceeds of USD$4.8 million (CAD$6.5 million ).
Production Enhancement Contract in
On
The Company, through its local subsidiary, commenced operations of the
To enhance production, the Company plans to introduce proven modern technologies and operating techniques that include artificial lift, workover programs, infill and extension drilling programs along with investigating deeper horizons which are productive in other fields and regions of the country. Reservoir and production data is being collected and analyzed to confirm near-term capital efficient enhancement opportunities. Seismic reprocessing and a 3-D seismic program are also planned to support these efforts and a reserve report compliant with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities will be completed for 2024 year-end reporting purposes. The existing pipeline and facilities infrastructure is also under evaluation for optimization of water handling, field compression and the field gathering network. Production guidance will be provided once the baseline production, decline rates and field operating parameters are confirmed.
LNG in
In
The Company’s LNG initiative fully supports the strategy of the Government of
Lithium License in
The Company holds a 100% working interest in the contiguous 37,300-hectare area which provides the subsurface exploration rights for solid minerals for a six-year term (the “Lithium License”). Given its strategic access to Asian and European lithium markets, this region is ideally suited for the rapid deployment of emerging Direct Lithium Extraction (“DLE”) technologies to generate lithium for EV batteries and other electricity storage applications.
Since the Lithium License is not associated with legacy oil wells nor any reported presence of hydrogen sulphide, a less complex and less capital intensive modular DLE technology is envisioned for the separation of lithium from the brine when compared with lithium extraction projects targeting oilfield brines, as are being advanced in
The Company’s initial development plan for the Lithium License includes drilling and testing two wells to verify deliverability rates, confirm the lateral extension and concentrations of lithium in the tested and untested intervals, conduct preliminary engineering for the production facilities, and prepare a mineral resources or mineral reserves report compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Convertible Debentures issued in
On
RESULTS OF OPERATIONS
For the three months ended | 2024 | 2023 | Increase | ||||||
Uzbekistan Production | |||||||||
Natural gas (Mcf) | 2,027,905 | - | 2,027,905 | ||||||
Condensate (barrels) | 8,190 | - | 8,190 | ||||||
Total (boe/d) | 11,167 | - | 11,167 | ||||||
Uzbekistan Sales | |||||||||
Natural gas ( | 6,566 | - | 6,566 | ||||||
Condensate ( | 646 | - | 646 | ||||||
Total ($000’s) | 7,212 | - | 7,212 |
MESSAGE FROM CONDOR’S CEO
- Artificial lift equipment to remove water from the gas wells is now in-country and installation will commence in the early part of the second half of 2024. These systems have yielded gas production increases in North American wells but are not commonly utilized in
Central Asia . - Design work of Field “in-line” water separation units is underway with installation planned in the second half of 2024. These systems have removed up to 99% of the liquids in gas pipelines in
North America but are not commonly utilized inCentral Asia . - A workover program is scheduled to begin in the third quarter of 2024 that targets shut-in and poor performing wells.
- An extensive Field well metering and pressure data gathering program is also underway to mature redevelopment opportunities.
- Proven surfactants have been introduced that allow wells to be produced without surface venting, thereby increasing gas production and reducing GHG emissions.
In addition, we have increased the size of the national staff by 22%, established offices in both
Strong progress is also being made on our LNG initiative in
BARRELS OF OIL EQUIVALENT ADVISORY
References herein to barrels of oil equivalent (“boe”) are derived by converting gas to oil in the ratio of six thousand standard cubic feet (“Mcf”) of gas to one barrel of oil based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf to 1 barrel, utilizing a conversion ratio at 6 Mcf to 1 barrel may be misleading as an indication of value, particularly if used in isolation.
FORWARD-LOOKING STATEMENTS
Certain statements in this MD&A constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as “expect”, “plan”, “estimate”, “may”, “will”, “should”, “could”, “would”, “increase”, “introduce”, “provide”, “generate”, “envision”, “apply”, “include”, “conduct”, “prepare”, “require”, “continue”, “reduce”, or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning: the timing and ability to execute the Company’s growth and sustainability strategies; the timing and ability to operate and increase production and overall recovery rates at eight gas fields in
This news release also includes forward-looking information regarding health risk management including, but not limited to: travel restrictions including shelter in place orders, curfews and lockdowns which may impact the timing and ability of Company personnel, suppliers and contractors to travel internationally, travel domestically and to access or deliver services, goods and equipment to the fields of operation; the risk of shutting in or reducing production due to travel restrictions, Government orders, crew illness, and the availability of goods, works and essential services for the fields of operations; decreases in the demand for oil and gas; decreases in natural gas, condensate and crude oil prices; potential for gas pipeline or sales market interruptions; the risk of changes to foreign currency controls, availability of foreign currencies, availability of hard currency, and currency controls or banking restrictions which restrict or prevent the repatriation of funds from or to foreign jurisdiction in which the Company operates; the Company’s financial condition, results of operations and cash flows; access to capital and borrowings to fund operations and new business projects; the timing and ability to meet financial and other reporting deadlines; and the inherent increased risk of information technology failures and cyber-attacks.
By its very nature, such forward-looking information requires Condor to make assumptions that may not materialize or that may not be accurate. Forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such risks and uncertainties include, but are not limited to: regulatory changes; the timing of regulatory approvals; the risk that actual minimum work programs will exceed the initially estimated amounts; the results of exploration and development drilling and related activities; prior lithium testing results may not be indicative of future testing results or actual results; imprecision of reserves estimates and ultimate recovery of reserves; the effectiveness of lithium mining and production methods including DLE technology; historical production and testing rates may not be indicative of future production rates, capabilities or ultimate recovery; the historical composition and quality of oil and gas may not be indicative of future composition and quality; general economic, market and business conditions; industry capacity; uncertainty related to marketing and transportation; competitive action by other companies; fluctuations in oil and natural gas prices; the effects of weather and climate conditions; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals and the possibility that government policies or laws may change or government approvals may be delayed or withheld; changes in environmental and other regulations; risks associated with oil and gas operations, both domestic and international; international political events; and other factors, many of which are beyond the control of Condor. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs.
These risk factors are discussed in greater detail in filings made by Condor with Canadian securities regulatory authorities including the Company’s Annual Information Form, which may be accessed through the SEDAR+ website (www.sedarplus.ca).
Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. The forward-looking information contained in this news release are made as of the date of this news release and, except as required by applicable law, Condor does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
ABBREVIATIONS
The following is a summary of abbreviations used in this news release:
Mcf | Thousands of standard cubic feet | |
Mcf/D | Thousands of standard cubic feet per day | |
boe | Barrels of oil equivalent | |
boe/d | Barrels of oil equivalent per day | |
bopd | Barrels of oil per day | |
CEO | Chief Executive Officer | |
CFO | Chief Financial Officer | |
3-D | Three dimensional | |
CAD | Canadian Dollars | |
USD | United States Dollars | |
LNG | ||
DLE | Direct Lithium Extraction | |
EV | Electric Vehicle | |
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
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Source:
2024 GlobeNewswire, Inc., source