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- Approval enables Condor to progress to final licence contract negotiations
- Qualification demonstrates company’s legal, financial and technical capabilities
- Qualification relates to exercising first option of the Technical Evaluation Agreement
- Condor will now progress to direct negotiations with Perupetro on licence terms
Australian oil and gas junior Condor Energy (ASX: CND) has received formal qualification from Peru’s state-owned agency Perupetro – completing a key step towards securing a full exploration and exploitation licence in Peru.
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The qualification confirms Condor’s eligibility to assume the obligations associated with a 100% interest in a licence contract for the exploration and exploitation of hydrocarbons in offshore Block Z-72 – a required step in the process to formal licence award.
Block Z-72 is the offshore designation, used by Perupetro, for the proposed licence contract covered by this qualification.
The approval follows assessment of Condor’s legal, financial and technical capabilities under Peru’s qualification process. Alongside community consultation, Condor will now progress direct negotiations on the licence contract terms with Perupetro, with execution remaining subject to agreement on final terms and the required government approvals.
“We thank Perupetro for its engagement throughout the qualification process and look forward to progressing negotiations on the licence contract terms for Block Z-72,” MD, Serge Hayon, said.
“Anadarko’s planned exploration well offshore northern Peru in 2027 highlights continued industry investment in the region. With energy security and reliable domestic supply remaining national priorities, we believe Condor’s gas commercialisation and oil exploration strategy has a clear role to play.
“Progressing towards a full licence contract is central to establishing the long-term contractual basis for investment and development. This qualification advances that process, as we continue discussions with potential strategic partners and gas customers.”
A Technical Evaluation Agreement (TEA) is an oil and gas contract in Peru that provides the holder with the exclusive right to negotiate a licence contract over the TEA area.
In August 2023, Conso, with its partner Jaguar Exploration, entered into the 4,858 sq. km TEA LXXXVI with Perupetro. The TEA area covers almost all of the Peruvian offshore Tumbes Basin in shallow to moderate water depths of between 50m and 1,500m.
The under-explored block is surrounded by multiple historic and currently producing oil and gas fields and contains the undeveloped shallow water Piedra Redonda gas field which contains ‘best estimate’ contingent resources of one trillion cubic feet of natural gas.
CND was up 5.56% to 1.9¢. Mkt cap $15.54M.
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