Condor Energies, a Canadian based, internationally focused energy transition company focused on Central Asia, announces the release of its unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025.

HIGHLIGHTS

• Production in Uzbekistan for the third quarter of 2025 averaged 9,978 boe/d comprised of 9,778 boe/d (58,668 Mcf/d) of natural gas and 200 bopd of condensate.
• Uzbekistan natural gas and condensate sales for the third quarter of 2025 was $18.74 million.
• Drilling of Uzbekistan’s first horizontal well continues and the planned 1000-meter lateral section is currently underway with numerous mud gas shows being encountered. 
• A field optimization study and engineering design for the first phase of field compression has been completed, and the procurement process has commenced. Installing compression will increase gas production rates and recoverable volumes by reducing well back pressure.
• On August 12, 2025, the Company executed a USD $5.0 million-dollar bridge loan facility for the First LNG Facility which is scheduled to produce Kazakhstan’s first LNG in the third quarter of 2026.

Don Streu, President and CEO of Condor commented: 
“Condor is in an envious position given its diverse portfolio of energy-transition initiatives in Central Asia, a region that is drawing increased focus and foreign direct investment for its energy and critical minerals sectors. Our team has decades of experience operating in remote regions and has successfully introduced modern operating techniques and technologies, while maintaining a deep understanding of value realization in these environments.

The Company is currently drilling Uzbekistan’s longest horizontal well and is using Western tools and techniques never before deployed there. Our multi-well drilling campaign is intended to materially increase both gas production rates and associated cash flows, and Condor’s recently reprocessed 3-D seismic data set has generated an extensive inventory of undrilled structures, with numerous infill and undrained attic closure locations identified. Accordingly, we are actively pursuing a second drilling rig to accelerate our planned 12-well drilling program in 2026. 

We continue to make strong progress in our efforts to deliver Central Asia’s first LNG production, and we are on track to commence production in the third quarter of 2026. The three LNG feedgas allocations awarded to Condor to-date total more than 625 million cubic meters of natural gas per year and the allocations are strategically located to supply LNG fuel to multiple consumers in various regions of the country. The Government of Kazakhstan supports Condor’s LNG initiative, since it will provide the country with greater energy security while assisting in achieving greenhouse gas reduction targets.

The Company is also conducting an aeromagnetic survey at one of our critical minerals licenses to help further define mineral deposits and structural trends which will allow us to better understand the potential for both copper and lithium development. There has been a dramatic 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. Given the heavily faulted systems we’ve 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.

Condor remains committed to advancing its diverse portfolio of assets for the benefit of our shareholders, stakeholders and host governments while continuing to position the Company as a leading energy transition developer in Central Asia”.

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”). Production in the third quarter of 2025 averaged 9,978 boe/d comprised of 9,778 boe/d (58,668 Mcf/d) of natural gas and 200 bopd of condensate. 

Total production in Uzbekistan for the third quarter of 2025 decreased 1.7% compared to the second quarter of 2025 due mainly to natural reservoir decline but offset by the increased production from the various workovers performed during the third quarter of 2025 consisting of recompletions, tubing changes, and artificial lift installations. One of the recompletions in the third quarter of 2025 involved perforating a new zone of interest and resulted in an incremental average daily production rate of 2.2 MMscf/d.

On September 8, 2025 the Company commenced drilling its first well in Uzbekistan (the “First Well”). A pilot vertical hole was drilled to a total depth of 2,805 meters that penetrated the currently producing carbonate reservoir sections as well as deeper, under-exploited stacked clastic reservoir sections. After coring and extensive wireline logging operations, petrophysical analysis indicates 37.6 meters of non-contiguous net gas pay was identified consisting of 28.5 meters in carbonate reservoirs and 9.1 meters in deeper clastic reservoirs.

Following logging, the pilot hole was open-hole sidetracked to drill a horizontal leg into a known carbonate reservoir. Drilling of the 1000-meter lateral section is ongoing with numerous mud gas shows being recorded. Depending on drilling conditions, the lateral section may be extended. Once reaching total depth, the lateral section will be flow tested and shut in for build up pressure evaluation while the rig moves to the next drill location (the “Second Well”).  The First Well is expected to be tied into the Company’s production system in December 2025.

The Second Well will be drilled from the same pad location and target a shallower carbonate reservoir identified in the recently drilled pilot hole of the First Well. The Second Well will utilize a simplified casing design to leverage drilling learnings from the previous two penetrations to reduce drilling time and costs and is planned to be a geo-steered, 1,000-meter open hole horizontal well and aims to further de-risk the stacked carbonate reservoirs present across the Company’s licenses.

The Company is also in the process of contracting a second drilling rig to concurrently drill at a nearby under-developed gas field located in the southern region of the Company’s licenses in Uzbekistan. This field is currently producing from a single downdip gas well where Condor recently perforated an eight-meter thick carbonate interval which increased the well’s average daily production from 1.1 MMscf/day to 7.5 MMscf/day for the first thirty days and has produced an average of 6.0 MMscf/day for the past six months. This recompletion has also de-risked the large undeveloped, up-dip structural closure that was identified on the Company’s recently reprocessed and interpreted 3-D seismic data. With the second drilling rig, Condor plans to drill an initial vertical well through the top of the structure to confirm current mapping, collect modern wireline and core data, and provide test rates. This will be followed by a pad-style horizontal development drilling program targeting three reservoirs with up to six horizontal wells. A second pad location is also envisioned to develop this structure as it represents material undeveloped volumes. Up to twelve wells in total are planned to be drilled in 2026 with the two rigs to accelerate gas production volumes. 

Installation of field compression remains a top priority for the Company in 2026. Engineering design for the first phase of field compression (“Phase 1”) has been completed, and the procurement process has commenced. Phase 1 compression will increase gas production by reducing the well’s back pressure and mitigate the negative impact of fluctuating and increasing gas sales line pressure. Simulation work conducted by an independent third-party engineering company indicates compression will yield over 20 MMscf/day of incremental gas production with the reduction of well back pressure and lost production due to increasing gas sales line pressure. The field compression facility is scheduled to be commissioned in the fourth quarter of 2026. Actual results may differ as described below in the Business Risks and Forward-Looking Statements sections. 

LNG in Kazakhstan

The Company is currently constructing its first LNG facility for its Saryozek plant site (the “Saryozek Site”) to produce, distribute, and sell LNG to offset industrial diesel usage in Kazakhstan and is scheduled to be the first LNG facility operating in Kazakhstan (the “First LNG Facility”). LNG fuel applications in the country include rail locomotives, long-haul truck fleets, marine vessels, mining equipment, municipal bus fleets, heavy equipment and machinery with high-horsepower engines, all of which are being successfully utilized in other countries.

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 the modular design, two additional 48,000 gallon per day expansion facilities are planned for the Saryozek Site which would fully utilize one of the three natural gas allocations awarded to the Company. In May 2025, the Company purchased the main equipment for the First LNG Facility and construction is over ninety percent complete. Upon completion, the equipment will be shipped to Kazakhstan for assembly and commissioning at the Saryozek Site with LNG production expected in the third quarter of 2026. The Company secured the land for the Saryozek Site until July 2059 under an agreement which requires an LNG facility to be constructed by August 2030. The Company is also finalizing LNG off-taker agreements and advancing several third-party financing solutions. 

As of September 30, 2025, the Company has incurred CAD $5.24 million of costs for the First LNG Facility including $4.58 million of property, plant and equipment and $0.66 million for the third natural gas allocation. The estimated additional costs to complete the First LNG Facility construction and commissioning is USD $23.6 million (CAD $32.9 million) including various ancillary equipment, feed gas hookup and piping, power generation, electrical infrastructure, and distribution equipment including storage tanks, LNG loading facilities and rolling stock.

Condor’s LNG facilities will be instrumental to supplying a stable, economic and more environmentally friendly fuel source for the Transcaspian International Transport Route (“TITR”) expansion, which is currently the shortest, fastest and most geopolitically secure transit corridor for moving freight between Asia and Europe. The Government of Kazakhstan and Kazakhstan’s national railroad are making significant investments in TITR infrastructure, including expanding the rail network, constructing a new dry port at the Kazakhstan – China border, and increasing the container-handling capacities at various Caspian Sea ports. 

Condor has received three natural gas allocations for 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, 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 news release for further discussion on the risks and uncertainties related to the natural gas allocations and the Company’s LNG initiatives.

USD $5 Million Bridge Loan Financing

On August 12, 2025, the Company, through a subsidiary, entered into 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 second 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 matures on the earlier of March 30, 2026 and ten business days following the receipt of third-party project financing for the First LNG Facility. 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.  

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.

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. 

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 until 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.

KeyFacts Energy: Condor Energies Uzbekistan country profile