Condor Energies has signed a Heads of Agreement (“HoA”) with the Ministry of Energy, the Ministry of Mining Industry and Geology and the national hydrocarbon energy company JSC Uzbekneftegaz (“UNG”) of the Republic of Uzbekistan.

The HoA establishes the detailed framework for the final negotiations and approval of the definitive legal documents for an investment project to assume full operations of eight existing gas-condensate fields along with two additional exploration blocks in the surrounding area with the objective of increasing production rates and recoverable reserves.

If the definitive agreements are executed, Condor will implement a comprehensive field refurbishment, infill drilling and an emissions-intensity reduction plan. The produced gas will be processed under long-term agreements with UNG using fixed tariffs and sold domestically under long-term contracts with the state gas marketing company.

Don Streu, President and CEO of Condor commented: 
“Condor is honored to be selected as a strategic partner of UNG and to be given the opportunity to materially contribute to increasing Uzbekistan’s natural gas production rates and recoverable reserves. The Company’s plan will introduce proven technologies and operating practices and take advantage of Condor’s regional experience. This investment project will also allow UNG to benefit by deploying their capital and the new technologies introduced by Condor to UNG’s larger projects. The Uzbekistan government will benefit from increased taxes and royalties derived from the increased gas production and the local communities will benefit from increased employment and skills-training. We also believe that the adjoining 1,070 square kilometers of exploration territory is prospective and that future exploration efforts could lead to the discovery of satellite fields and thereby further increase future production.

Condor is very excited about this investment opportunity in Uzbekistan. The country has been undergoing significant economic, legal, tax and social reforms under the leadership of President Shavkat Mirziyoyev, which has further enhanced the country’s investment climate”.