Condor Energy confirms significant gas upside at Piedra Redonda offshore Peru project

Condor Energy (ASX: CND) has received an independent assessment which has confirmed the significant upside potential of the Piedra Redonda gas field off the coast of Peru.

The company came out of a trading halt to announce that studies by leading international independent resource auditing firm RISC Advisory had identified a 147% increase in the field’s best estimate (2C) contingent resource of 1 trillion cubic feet (tcf) of gas.

RISC’s studies also revealed a 513% increase on the high estimate (3C) of 2.65 tcf of gas in Piedra Redonda, which is located within Condor’s Tumbes Technical Evaluation Agreement (TEA) where it holds an 80% interest.

Game changing results

Managing director, Serge Hayon, said the results are significant for Condor and South America.

“Piedra Redonda now ranks as one of the largest undeveloped offshore gas discoveries on the west coast of South America and dramatically increases the value and strengthens our position in the Tumbes basin,” he said.

“Piedra Redonda is located in shallow water and proximal to potential markets and following the positive results of this independent assessment and substantial increase to the resource base the commercialisation and field development options have expanded considerably.”

Researching exploration upside

Mr Hayon said Condor and joint venture partner Jaguar Exploration are now assessing the potential for additional Piedra Redonda look-alike prospects along strike.

“Our focused initial work program and high-quality technical work to mature the Tumbes TEA through integrating the newly reprocessed and interpreted seismic data and petrophysical, geological and basin modelling studies has delivered an excellent result,” he said.

“The material discovered resource along with our inventory of over 20 prospects and leads in a proven but underexplored basin, underscores the substantial existing value and high potential within the TEA.”

He said interpretation of Miocene oil play exploration prospects are well advanced with prospective resource estimates for high-graded prospects in progress.

Resources review complete

Condor has completed a resources review following the reprocessing of 3D seismic over the Piedra Redonda discovery, the updated mapping, petrophysical review and integrated geological interpretation.

It is also planning to engage an independent auditor to review and certify resources for selected high graded oil prospects.

The company and Jaguar entered the 4,858 sq km TEA LXXXVI licence offshore Peru with the government’s oil and gas entity, Perupetro, in August 2023.

The TEA covers almost all of the Peruvian offshore Tumbes Basin in shallow to moderate water depths of between 50m and 1,500m.

The lightly explored block is surrounded by multiple historic and currently producing oil and gas fields.