Piedra Redonda Gas Field Contingent Resources Surge to 1 Tcf in Independent Assessment

Significant Resource Upgrade at Piedra Redonda

Condor Energy Limited (ASX: CND) has revealed a major upgrade to its Piedra Redonda gas field contingent resources, with an independently assessed Best Estimate (2C) of 1 trillion cubic feet (Tcf) of gas gross, representing a 147% increase from the previous 404 billion cubic feet (Bcf) estimate. This substantial revision, certified by RISC Advisory, a respected international resource auditor, underscores the growing significance of the Tumbes Basin offshore Peru as a promising hydrocarbon province.

The High Estimate (3C) resource has also surged to 2.65 Tcf gross, a remarkable 513% increase, highlighting considerable upside potential that Condor intends to pursue through future appraisal drilling campaigns. The updated resource figures are based on newly reprocessed 3D seismic data integrated with detailed geological, petrophysical, and geophysical analyses, reflecting a more comprehensive understanding of the reservoir.

Strategic Importance and Market Proximity

Located in shallow waters within Condor's 4,858 km² Tumbes Technical Evaluation Agreement (TEA) offshore Peru, Piedra Redonda is now positioned as one of the largest undeveloped offshore gas discoveries on the west coast of South America. The field's proximity to potential markets enhances its commercial attractiveness, especially as regional energy demand grows.

Managing Director Serge Hayon emphasized the transformative impact of the resource upgrade, noting that it "dramatically increases the value and strengthens our position in the Tumbes basin." He highlighted that the expanded resource base broadens commercialisation and development options, setting the stage for accelerated project maturation.

Technical Insights and Exploration Upside

The revised interpretation of the Piedra Redonda trap reveals a stratigraphic onlap and pinch-out mechanism rather than a purely structural fault-bound trap, opening new exploration avenues. This dual trapping style suggests the potential for additional gas accumulations along strike, with similar geological settings identified in the Mancora gas play.

Importantly, faults in the shallow section appear to detach into over-pressured shales without breaching the reservoir, indicating good trap integrity and reservoir continuity. These geological insights provide a robust foundation for Condor's planned appraisal activities aimed at refining reservoir parameters and unlocking further resource upside.

Broader Portfolio and Future Prospects

Beyond Piedra Redonda, Condor is advancing the maturation of over 20 prospects and leads within the TEA, including high-graded Miocene oil plays. The company is progressing detailed mapping and resource estimation for these prospects, with plans to engage independent auditors for certification. This diversified portfolio enhances Condor's growth potential and underscores the underexplored nature of the Tumbes Basin.

The TEA, held 80% by Condor with Jaguar Exploration holding 20%, covers a strategically significant area offshore Peru, surrounded by historic and producing fields. The recent resource upgrade at Piedra Redonda not only elevates Condor's asset base but also signals the basin's broader hydrocarbon potential.

Looking Ahead

While the contingent resources are not yet classified as commercially mature, the independent certification and geological insights provide a strong platform for Condor to advance appraisal drilling and commercial negotiations. The company’s next steps will be critical in translating these resource estimates into development plans and ultimately production.