Join our daily newsletter At The Bell to receive exclusive market insights
Condor Energy (ASX:CND) has signed a deal with Peruvian natgas distributor Promigas to evaluate gas supply from the Piedra Redonda gas field and “evaluate midstream and downstream opportunities” in the country.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The Condor-Promigas agreement, signed this week, will give the Australian gas producer key access to Promigas Peru’s established infrastructure and market access as it works towards actually selling gas from Piedra Redonda.
The field in question, which lies in the Tumbes Basin offshore from Peru, hosts an estimated one trillion cubic feet of contingent gas resources (2C gross).
Condor will now work with Promigas on several technical and commercial studies, with the aim of figuring out gas supply profiles and how the partnership can actually distribute the wealth of gas across Peru.
Everything from setting up dedicated pipeline connections to finding power options and CNG and LNG solutions and building integration into existing regional networks will be explored, Condor explained today.
“By formalising our collaboration, we are providing a clear pathway toward defining and delivering a gas sales solution and potential offtake for the underserved northern Peru gas market,” Condor’s managing director, Serge Hayon, said.
“Promigas brings extensive infrastructure, investment, and distribution expertise in Peru, and together we’re well positioned to unlock the value of our strong resource.”
Most importantly for shareholders, Mr Hayon pointed out, the studies will “provide the foundation for future commercial arrangements” that could then let Condor progress the Piedra Redonda field toward monetisation.
The whole Peru deal was largely well-received on the HotCopper forums, with some users (and likely investors) declaring “the pieces are fitting together.”
The wider Oz market didn’t like the deal as much, though; by 11am Thursday, CND shares had dropped by -4.76% and were struggling to recover.
The gas explorer is still up +5% YTD, but has lost -13% value this last month.
Join the discussion. See what HotCopper users are saying about Condor Energy Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
