HIGHLIGHTS
Production in Uzbekistan for the fourth quarter of 2025 averaged 10,534 boe/d comprised of 10,218 boe/d (61,310 Mcf/d) of natural gas and 316 bopd of condensate or a total production increase of 5.6% from the third quarter of 2025. Uzbekistan natural gas and condensate sales for the fourth quarter of 2025 was $20.38 million or an 8.8% increase from the third quarter of 2025.
Production in Uzbekistan for the year ended December 31, 2025 averaged 10,484 boe/d comprised of 10,202 boe/d (61,213 Mcf/d) of natural gas and 282 bopd of condensate. Uzbekistan natural gas and condensate sales for 2025 was $80.66 million.
A multi-well drilling program commenced in Uzbekistan in September 2025 with two horizontal and one vertical well drilled to date. Two of the wells (one horizontal and one vertical) have been completed and were tested at a combined rate of 2,096 boe/d (12.6 MMcf/d) with completion activities underway for the other horizontal well. Drilling of the next horizontal well is ongoing and currently at 2,335 meters with the well estimated to be completed and tested by mid-April 2026.
March 2026 month-to-date production has averaged 12,622 boe/d comprised of 12,274 boe/d (73.6 MMcf/d) of natural gas and 348 bopd of condensate and is primarily due to the completion of the newly drilled wells.
A tendering process is underway to install the first phase of a field booster compression program in Uzbekistan, and the contract is expected to be awarded in the second quarter of 2026. Field booster compression is expected to increase gas production rates by lowering the gathering system pressure.
The Company completed fabrication of its first LNG liquefaction facility in March 2026 (the "First LNG Facility") and is undergoing function and acceptance testing prior to shipment to Kazakhstan, which is expected in the second quarter of 2026.
On April 15, 2025, the Company secured its third natural gas allocation in Kazakhstan for LNG feed gas, a portion of which will be allocated to the First LNG Facility.
On August 12, 2025, the Company established a USD $5.0 million bridge loan facility (the "Bridge Loan") for the First LNG Facility which was originally set to mature on the earlier of March 30, 2026, and ten business days following the receipt of third-party project financing for the First LNG Facility. In March 2026, the Bridge Loan maturity date was extended to July 15, 2026, with all other terms remaining unchanged.
On December 24, 2025, the Company completed a brokered private placement of convertible debentures for aggregate gross proceeds of $13.65 million, less cash issue costs of $1.06 million, which will be used to accelerate development activities and in-field compression facilities in Uzbekistan.
The Company entered into a share purchase agreement on January 21, 2026, with a third-party buyer to sell the shares of the Company's wholly owned subsidiary which holds the Poyraz Ridge and Destan operating licenses and gas fields in Türkiye for a ten-year gross overriding royalty and a nominal cash payment.
MESSAGE FROM CONDOR'S CEO
Don Streu, President and CEO of Condor commented: "It's been a transformational year for Condor as indicated by the numerous performance accomplishments noted above. Our current activities in Uzbekistan are providing sustainable growth for reserves, production, and cashflow while we concurrently advance our LNG fuel substitution project and our early-stage copper and lithium critical minerals opportunities in Kazakhstan. The divestiture of our Turkish holdings is consistent with management's focus on higher-return growth initiatives.
We've demonstrated the successful application of proven Western technologies in Uzbekistan, including drilling horizontal wells, and are continuing to create material value as confirmed by this month's to-date average daily production rate, which has already increased by 20% from 2025's average daily production rate. This increase is despite the reservoir's natural decline rate of more than 20% per year. Not only has the team drilled Uzbekistan's longest horizontal well, but we're also realizing a continual reduction in cost and drilling days with each successive well. Our reprocessed 3-D seismic has already identified numerous undrilled structures with multiple infill, undrained attic closures that has generated a new drilling inventory of over 50 wells.
A major LNG milestone was also recently achieved by completing fabrication of the First LNG Facility, and we look forward to shipping it next quarter for assembly in Kazakhstan. Due diligence work is ongoing with multiple third-party finance groups to finalize definitive agreements for the First LNG Facility. Having already secured three LNG feed gas allocations, Condor is uniquely positioned to benefit as the LNG industry evolves in Kazakhstan. The recent surge in activity related to Kazakhstan's critical minerals, including copper and lithium, also bodes well for potential growth in that market, especially given the strategic location of Condor's two critical minerals licenses to neighboring China.
We are very excited and well positioned to continue building strong, near-term shareholder value from our diverse energy transition portfolio".
Production in Uzbekistan
The Company operates under a production enhancement services contract with JSC Uzbekneftegaz ("UNG") in Uzbekistan to increase the production, recovery, and overall system efficiency from an integrated cluster of eight conventional natural gas-condensate fields (the "PEC Project"). The cumulative license area is 282 km2 or the equivalent of 109 sections, with 71 active gas wells that produce mainly from a Jurassic Carbonate reservoir. Production in the fourth quarter of 2025 averaged 10,534 boe/d comprised of 10,218 boe/d (61,310 Mcf/d) of natural gas and 316 bopd of condensate or a total production increase of 5.6% compared to the third quarter of 2025 due mainly to successful workovers. March 2026 month-to-date production has averaged 12,622 boe/d comprised of 12,274 boe/d (73.6 MMcf/d) of natural gas and 348 bopd of condensate and is primarily due to the completion of the newly drilled wells.
In 2025, the Company reprocessed and interpreted 1,462 km2 of existing 3-D seismic data which has already identified more than 40 potential drilling locations. Drilling operations commenced in September 2025, and three wells have been drilled to date: two horizontal wells in the Andakli field (A-23 and A-21) and one vertical in the previously unidentified Kumli NW structure (K-45). The A-21 well was drilled with a 1,279-meter lateral section and a well test was conducted at a stabilized flowing rate of 7.3 MMscf/d (or 1,213 boe/d) through a 5/8" choke at a flowing tubing pressure of 722 psi for a two-hour period. The K-45 vertical well was drilled to a total depth of 2,410 meters and a well test was conducted at a stabilized flowing rate of 5.3 MMscf/d (or 883 boe/d) through a 1/2" choke at a flowing tubing pressure of 1,053 psi for seven hours. Both wells were tied into the production facilities immediately after testing. The A-23 horizontal well was drilled with a 1,007-meter lateral section and was recently completed with gas volumes flowing to surface. A faulty piece of completion equipment is being replaced before the well is tested and put into service.
Drilling of a fourth well, K-46 horizontal, started in late February 2026 on the same pad as K-45 and targets up to a 1,000-meter lateral section in the same reservoir. Based on K-45 results, the K-46 target pay section should also be dolomitized, which enhances the reservoir porosities and permeabilities and should contain an even higher reservoir quality compared to A-21 and A-23. Given the strong K-45 flow test results, the near virgin reservoir pressures observed, higher reservoir porosities than previously encountered, and the fact that horizontal wells often produce at two to four times the rate of vertical wells, the K-46 well could materially grow near term production rates. To date, K-46 has been drilled to 2,335 meters and intermediate casing set with completion and testing targeted for mid-April 2026.
Beyond the development of the Kumli NW structure, similar lightly developed structures have been identified from the Company's reprocessed 3-D seismic survey including the Kushimcha, Sharkiy Khatar, North Syuzma, and Kumli Central structures. Technical work is ongoing to estimate recoverable gas volumes and optimize well placements. These fields will be developed using a combination of vertical and horizontal wells later in 2026 and beyond. Of note is that the vertical wells will penetrate the deeper Jurassic clastics play, which is very lightly developed with promising upside. Two of the Company's highest daily gas rate wells are producing from this play at North Syuzma, and the Company plans to further delineate this play with the 2026 drilling program.
As noted above, the Company contracted the first drilling rig in September 2025 and drilled the A-23 and A-21 horizontal wells. A second drilling rig was contracted in December 2025, which drilled the K-45 vertical well and is now drilling the K-46 horizontal well. Multiple mechanical failures and significant nonproductive time were encountered by the first rig while drilling the A-23 and A-21 wells and this contract was recently terminated. The Company is actively sourcing a replacement rig with plans to drill up to twelve wells in 2026 to accelerate gas production volumes.
Installation of field booster compression remains a top priority for the Company in 2026. The tendering process is underway for the first phase with the contract expected to be awarded in the second quarter of 2026. Booster compression is expected to increase gas production by lowering the gathering system pressure, mitigating liquid loading effects in wellbores, and helping to manage the impact of fluctuating and increasing gas sales line pressures. Simulation work conducted by an independent third-party engineering company indicates compression could yield over 20 MMscf/d of incremental gas production and extend end-of-field life. The field compression facility is scheduled to be commissioned in the first quarter of 2027.
LNG in Kazakhstan
The Company has completed fabrication works on its First LNG Facility for the Saryozek plant site (the "Saryozek Site") and it is currently undergoing function and acceptance testing prior to its shipment to Kazakhstan in the second quarter of 2026. The Company expects to produce, distribute, and sell LNG to offset industrial diesel usage in Kazakhstan and end-user applications include rail locomotives, long-haul truck fleets, marine vessels, mining equipment, municipal bus fleets, and high-horsepower heavy equipment and machinery. All these LNG applications have successfully been implemented in other countries. LNG production is expected to commence late in the fourth quarter of 2026.
The First LNG Facility is expected to have an initial production capacity of 48,000 gallons (80 MT) of LNG per day, and due to its modular design, production at the Saryozek Site will subsequently be expanded by two additional 48,000 gallon per day facilities to fully utilize the gas allocation awarded for this site. The Saryozek Site is one of the three natural gas allocations awarded to the Company in Kazakhstan. The Company has secured 20 hectares of land at the Saryozek Site until July 2059 under an agreement which requires the Company to construct an LNG facility at the site prior to August 2030. The Company is also finalizing LNG off-taker agreements.
The Company is advancing third-party financing discussions to complete the First LNG Facility, and the Company may enter into one or more partnerships (or other joint venture structures) at its sites in Kazakhstan where it has already secured feed gas allocations (including the First LNG Facility).
As of December 31, 2025, the Company has incurred CAD $8.5 million of costs for the First LNG Facility, including $7.8 million for property, plant and equipment and $0.7 million for the third natural gas allocation. The estimated additional costs to complete the First LNG Facility construction and commissioning is USD $22.7 million (CAD $31.1 million) which includes various ancillary equipment, feed gas hookup and piping, power generation, electrical infrastructure, distribution equipment and storage tanks, LNG loading facilities and rolling stock.
Condor has received three natural gas allocations at three different locations within Kazakhstan, and the Company plans to construct modular LNG facilities at all three locations. Based on the natural gas allocations of 21,798 m3/hour, 29,110 m3/hour and 20,500 m3/hour, respectively, the total potential LNG fuel produced would have an energy-equivalent volume of 1.5 million litres of diesel daily, while also reducing CO2 emissions by 390,000 MT per year, which is equivalent to removing 85,000 cars from the road annually. See "Forward-Looking Statements" in this MD&A for further discussion on the risks and uncertainties related to the natural gas allocations and the Company's LNG initiatives.
USD $5.0 Million LNG Bridge Loan Financing
On August 12, 2025, the Company, through a subsidiary, established a USD denominated $5.0 million Bridge Loan for the First LNG Facility which is on schedule to produce Kazakhstan's first LNG in the fourth quarter of 2026. The Bridge Loan was provided by EurAsia Resource Value SE, an existing significant shareholder of the Company, and provides funding to continue purchasing long lead equipment for the First LNG Facility while third-party project financing is being finalized. The Bridge Loan is unsecured, bears interest at 9.0% per annum, has no loan covenants, requires no repayment of principal or accrued interest until maturity, permits early repayment with no penalties or limitations, and was originally set to mature on the earlier of March 30, 2026, and ten business days following the receipt of third-party project financing for the First LNG Facility. In March 2026, the Bridge Loan was amended and the maturity date was extended to July 15, 2026, with all other terms remaining unchanged. The Bridge Loan's use of proceeds is for capital expenditures and general and administrative costs related to the construction and implementation of the First LNG Facility.
$13.65 Million Private Placement of Convertible Debentures
On December 24, 2025, the Company completed a brokered private placement of convertible debentures convertible into 6,825,000 common shares for aggregate gross proceeds of $13.65 million less cash debt issue costs of $1.06 million comprised of agent's fees, commissions, legal, advisory and regulatory fees and non-cash debt issue costs of $0.14 million related to broker and advisory warrants. The 2025 Debentures, as defined herein, are unsecured, bear interest at 12.0% per annum payable in cash semi-annually in arrears, have no loan covenants, mature on December 24, 2028, and the principal amount is convertible at any time at the option of the holder on or before the maturity date at a conversion price of $2.00 per common share. Any common shares issued upon conversion of the 2025 Debentures cannot be traded before April 25, 2026. The net cash proceeds of $12.59 million are expected to be used for development activities and in-field compression facilities in Uzbekistan, working capital and general corporate purposes.
Critical Minerals Licenses in Kazakhstan
The Company holds a 100% working interest in two contiguous critical minerals mining licenses which provide subsurface exploration rights for solid minerals, including lithium and copper, for respective six-year terms. The 37,300-hectare Sayakbay license was awarded in July 2023 and the nearby 6,800-hectare Kolkuduk license was awarded in February 2025. There has been a significant increase in the number of mining licenses awarded in the areas adjacent to the Company's license areas and active copper exploration activities are underway by major mining companies, including Rio Tinto.
A prior well drilled in the Kolkuduk license territory for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of up to 130 milligrams per litre as reported by the Ministry of Geology of the Republic of Kazakhstan. A 1,000-meter column of tested and untested brine reservoir has been identified from historical wireline log and core data. At Sayakbay, a prior legacy well drilled for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of 67 milligrams per litre in Carboniferous-aged intervals as reported by the Ministry of Geology of the Republic of Kazakhstan. A 670-meter column of tested and untested brine reservoir has been identified from historical wireline log and core data. Other critical minerals identified at the Kolkuduk and Sayakbay licenses include rubidium, strontium and cesium. Given the heavily faulted systems the Company has mapped in this geothermally active region, it appears that mineralized brines have migrated into the basin's reservoirs, as is evident by the lithium concentrations on Condor's blocks, as previously reported by the Ministry of Geology of the Republic of Kazakhstan.
The Company is not treating these historical estimates as current mineral resources or mineral reserves as additional drilling and testing is necessary, and a qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. It is uncertain if further drilling will result in either area being delineated as a mineral resource or reserve. The historical lithium concentration estimates should not be relied upon as indicative of the actual lithium concentration or the likelihood that the Company will be able to achieve similar production results.
The initial development plan for Sayakbay includes drilling and testing two wells to verify deliverability rates, confirming the lateral extension and concentrations of lithium in the tested and untested intervals, conducting preliminary engineering for the production facilities, and preparing a mineral resource or mineral reserves report compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Drilling at Sayakbay is not expected to commence before 2027 and the estimated costs for the initial development plan are USD $6.7 million (CAD $9.1 million). The initial development plan for the Kolkuduk license acquired in February 2025 has not yet been determined.
Sale of Turkish Properties
The Company entered into a share purchase agreement (the "SPA") on January 21, 2026 (the "Signing Date") with a third-party buyer (the "Buyer") to sell the shares of the Company's wholly owned subsidiary which holds the Poyraz Ridge and Destan operating licenses and gas fields in Türkiye (the "Turkish Properties") for a ten-year gross overriding royalty and a nominal cash payment. The matter is subject to customary Turkish government approvals for a transaction of this nature (the "Government Approvals") and completion shall occur within ten business days of receiving the Government Approvals (the "Closing Date").
The SPA includes a gross overriding royalty at rates ranging from zero to 15% depending on average daily production volumes and calculated as sales revenues less government royalties and less transportation costs for a period of ten years subject to an aggregate cap of USD $10.0 million and a cash consideration of 18,000 Euros due on the Closing Date. There was no cash payment due on the Signing Date. Subject to certain considerations, the Buyer is required to perform a minimum work commitment (the "Minimum Work Commitment") which includes conducting various workover activities and drilling one new well on the Turkish Properties.
Commencing sixty days following the Signing Date, the Buyer is responsible for all operating expenditures until the Closing Date including production costs, general and administrative expenses and taxes.
The Buyer has the option during the period between the Signing Date and the Closing Date (the "Interim Period") to request the Company, as operator, to perform activities that will be credited towards the Minimum Work Commitment, and the Buyer shall be responsible for any related expenditures.
Either party may terminate the SPA if the Government Approvals are not received within one year of the Signing Date and the Company would be required to repay the capital expenditures incurred for the Minimum Work Commitment activities performed during the Interim Period from ninety percent of the free cashflow (revenues less operating costs and taxes) from future natural gas production and sales from the Turkish Properties, if any.
SELECTED FINANCIAL INFORMATION
As at, and for the years ended December 31
($000's except for share amounts)
2025
2024
2023
Natural gas and condensate sales
80,690
66,626
643
Total revenue (sales less royalties)
69,538
57,408
552
Net income (loss)
1,232
3,493
(11,392
)
Net loss attributable to common shareholders
(4,212
)
(4,072
)
(11,392
)
Net loss per share (basic and diluted)
(0.06
)
(0.07
)
(0.20
)
Total assets
98,419
66,607
6,769
Non-current financial liabilities
19,208
9,364
5,504
RESULTS OF OPERATIONS
Reserves, Uzbekistan
The Company's 2025 reserves in Uzbekistan were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (see "Reserves Advisory"). The following reserves data as of December 31, 2025 is summarized by volume and net present value (before tax) discounted at 10% ("NPV10") in USD for: (i) the 100% property interest before deduction royalties ("100% Property Interest"); and (ii) Condor's 51% working interest share before deducting royalties ("51% Working Interest"). See "Non-Controlling Interest in PEC Project" in this news release which describes these interests in reserves and future net revenue.
100% Property Interestas of December 31, 2025
Natural Gas(MMcf)
Condensate(Mbbl)
Boe Reserves(Mboe)*
NPV 10Before Tax(in USD 000's)
Proved
153,394
746
26,312
78,489
Probable
27,856
134
4,777
20,555
Proved plus Probable
181,250
880
31,089
99,044
51% Working Interestas of December 31, 2025
Proved
78,231
381
13,419
40,029
Probable
14,206
68
2,436
10,483
Proved plus Probable
92,437
449
15,855
50,512
(* based on gas/boe conversion of 6 Mcf to 1 boe, see Reserves Advisory)
Non-Controlling Interest in the PEC Project
The Company recognizes 100% of the production volumes, sales volumes, sales revenues, royalties and expenses related to the PEC Project in Uzbekistan and then allocates 49% of the comprehensive income (loss) attributable to the non-controlling interest holder. This is consistent with the accounting and disclosure in the Financial Statements. Accordingly, the production volumes, sales volumes, sales revenues, royalties, expenses and netbacks disclosed in this news release related to the PEC Project are 100% of the amounts attributable to the PEC Project, of which 51% are attributable to the Company.
Production, Uzbekistan
Total Production
Three months endedDecember 31, 2025
Three months endedDecember 31, 2024
ChangeVolume
Natural gas (Mcf)
5,640,518
5,637,255
3,263
Natural gas (boe)
940,086
939,542
544
Condensate (barrels)
29,033
27,541
1,492
