Independent Resource Estimate Highlights Massive Oil Exploration Upside

A new independent assessment has confirmed a best estimate of 3 billion barrels of oil across five high-impact exploration prospects offshore northern Peru — putting Condor Energy (ASX:CND) firmly on the radar of investors seeking exposure to large-scale frontier oil opportunities.

“The independent resource estimate … validates our strong belief in the world-class potential of our acreage in the Tumbes Basin,” said Managing Director Serge Hayon. 

Global Consultancy Confirms Scale

International petroleum consultancy Netherland Sewell & Associates Inc. (NSAI) conducted the resource assessment, which covers five key prospects — Bonito, Raya, Salmon, Caballa, and Tiburon — within Condor’s Tumbes Basin Technical Evaluation Area (TEA).

The Bonito prospect alone is estimated to hold 1 billion barrels (best estimate 2U) of prospective oil resources, with the remaining four prospects contributing an additional 2 billion barrels. All figures are 100% gross unrisked.

“With a best estimate of 3 billion barrels of oil across five high-potential prospects, from our 20+ leads/prospects inventory, Condor has built and rapidly matured a high quality and material exploration portfolio with significant scale and running room,” Hayon said.

Targeting a Proven Reservoir

The majority of these prospective resources lie within the Lower Miocene Zorritos Formation, a proven reservoir in the Tumbes Basin. This formation is already known to contain oil and gas in other parts of the basin, increasing confidence in the geological model.

This exploration upside is complementary to Condor’s previously announced 1 Tcf contingent gas resource at Piedra Redonda — an undeveloped shallow-water discovery within the same block. That resource sits in shallower water and may offer near-term monetisation opportunities.

“This marks a major step forward in our exploration efforts and we are now focused on progressing our farmout process to secure a partner for exploration drilling at the earliest opportunity to unlock the full value of this exciting asset,” Hayon said.

Farmout Process Underway

Condor has now opened a data room for potential farm-in partners, seeking to bring in a co-venturer to fund future drilling. With exploration-ready targets and material upside, the company believes the opportunity is already generating interest.

Condor’s TEA covers 4,858 km² of underexplored acreage in offshore northern Peru, in water depths ranging from 50m to 1,500m. The block is surrounded by existing and historic producing fields yet remains largely undrilled in its deeper sections.

Granted in August 2023 in partnership with Jaguar Exploration Inc., the TEA gives Condor exclusive rights to negotiate a future licence over the area with Perupetro, the national oil agency.

Condor will host a shareholder briefing on Thursday 10 April to provide further detail on the resource update and forward plans.