Condor jumps over +13% on deal to take full ownership of large Peru exploration permit

• Condor’s price has taken off, up +13.5% on plans to take full ownership of the Peru permit and consolidate control in the Tumbes Basin.
• The move will help Condor simplify future exploration and development plans.
• The Aussie company will control billions of barrels of oil potential.

Condor Energy (ASX: CND) has jumped more than +13% on news it has executed a binding term sheet with Peru’s Jaguar Exploration to allow it to take total control of the giant Technical Evaluation Agreement 86 (TEA 86) permit.

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Subject to regulatory approvals, Condor’s acquisition of Jaguar’s 20% participating interest in TEA 86 will provide it with access to an area with the potential to hold billions of barrels of oil and discovered gas fields.

Condor’s managing director, Serge Hayon, heralded the transaction as a key step in positioning Condor for the next phase of growth.

“Moving to 100% ownership simplifies our structure and provides full control as we progress licence conversion, partner engagement and our exploration and development work programs,” Mr Hayon explained today.

“Importantly, the structure aligns vendor consideration with future value creation while maintaining flexibility across multiple pathways to advance the asset.”

Under a binding term sheet, Condor will acquire the remaining interest in TEA 86 from Jaguar and other minority beneficial holders through the issue of 140,127,490 performance shares, subject to shareholder approval.

The consideration performance shares will convert into fully paid ordinary shares on a one-for-one basis upon the conversion of all or part of TEA 86 into a licence contract following the approval of the Peruvian national oil company, Perupetro.

Mr Hayon said the acquisition represents a deliberate and disciplined consolidation step, providing Condor with full control and flexibility over the future direction of the Peru portfolio as the company advances discussions with potential farm-in and gas commercialisation partners.

Once formalised, Condor will then control the entire equity position across the highly prospective offshore Tumbes Basin and consolidate the company’s interest in the multi-trillion cubic feet Piedra Redonda gas field.

CND is up +13.5% through Thursday, to 2.1¢. Mkt cap $13.26M.

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