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Condor Energy Ltd (ASX: CND) (Condor or the Company) is pleased to provide an update on its evaluation work on the oil and gas potential of its 4,858km2 Technical Evaluation Agreement (TEA or Block) offshore Peru.
Highlights
- Significant new oil targets identified from fast-track interpretation of the 3,800km2 of legacy 3D seismic data
- Recently completed field work mapped Zorritos Formation reservoir fairways (the primary reservoir objective) into the Tumbes TEA
- A series of prospective leads have been mapped within these anticipated reservoir fairways located above Heath Formation source rocks at peak oil maturity
- Salmon Lead within this new trend has stacked structural traps with some potential Direct Hydrocarbon Indicators (DHIs)
- The structural configuration of the Salmon Lead is repeated several times, presenting the possibility of multiple follow-on targets in the event of success
As a result of the Company’s fast-track interpretation of the 3,800km2 of legacy 3D seismic data, the Company has identified significant new oil targets which highlights the potential for additional discoveries in the Block (Figure 1). Condor has completed a comprehensive assessment of the Salmon Lead.
Figure 1 – Perspective view of the Zorritos Unconformity. The Salmon Lead at this level has two separate closures (A&B) and additional leads (C-G) have also been identified. The green arrows show inferred oil migration pathways into the traps.
Figure 2 – Maturation map showing expected Vitrinite Reflectance (%) in the middle of the Heath Formation. The peak oilgeneration zone corresponds to a range in vitrinite reflectance between 0.8 and 1.2% shown in green.
The Salmon Lead is a structural target in the basin centre located mid way between the previously identified Raya and Bonito Prospects (Figures 2 and 3).
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This article includes content from Condor Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Condor Energy
Overview
Condor Energy (ASX:CND) is an Australia-based oil and gas exploration company focused on developing its recently acquired Tea LXXXVI oil and gas block in Peru, located in the Tumbes basin and near the prolific Talara basin. The project’s hydrocarbon exploration potential leverages Peru’s long history as an oil and gas producer dating back to the late 19th century when the country drilled its first well more than 150 years ago.
Hydrocarbon fields in the Tumbes and Talara basins have contributed over 1.4 billion barrels of domestic oil production and 1.7 trillion cubic feet (TCF) of natural gas production. The Talara basin itself has cumulatively produced more than 1.6 billion barrels of oil and is surrounded by multiple historic and currently producing oil and gas fields.
Condor Energy’s Tea LXXXVI project is the result of a technical evaluation agreement (TEA) with the Peruvian National Agency of Hydrocarbons (Perupetro), which provides Condor Energy and its partner, US-based oil and gas exploration company Jaguar Exploration, the exclusive right for greenfield exploration activities over the TEA area. Condor Energy holds an 80-percent interest in the asset with the remaining 20 percent held by Jaguar.
The project comprises a 4,858-square-kilometer oil and gas block in proven offshore hydrocarbon-bearing basins in Peru, including the prolific Talara basin. Offshore, Peru remains dramatically underexplored and has immense potential for hydrocarbon plays.
Considering the block's potential, Condor Energy has appointed a world-class technical team with more than 200 years of collective experience to develop the TEA LXXXVI asset. Several of the newly appointed team members have previously worked on the area covered by Condor Energy, which should help in fast-tracking the development of the block. The team comprises proven oil finders with collective discoveries of more than 480 million barrels of oil equivalent of 2P reserves and more than 400 million barrels of oil equivalent in contingent resources in Peru and Colombia.
The experience of working in the TEA LXXXVI property and surrounding fields will be vital for Condor Energy to expedite the understanding and evaluation of the asset.
Company Highlights
- Condor Energy is an Australia-based oil and gas exploration company focused on developing its recently acquired oil and gas block in Peru, TEA LXXXVI
- The TEA LXXXVI project comprises a 4,858 square-kilometer oil and gas block in the proven Tumbes hydrocarbon-bearing basin offshore Peru. Condor Energy holds an 80 percent interest in the asset with the remaining 20 percent held by US-based oil and gas exploration company, Jaguar Exploration.
- The block is in proximity to multiple historic and current producing oil and gas fields. This includes the Corvina oil field, which has produced at rates of up to 4,000 barrels of oil per day, and the Alto-Pena Negra oil field which is currently producing around 3,000 barrels of oil per day, along with a total historical production of more than 143 million barrels of oil. This increases confidence regarding the hydrocarbon exploration potential of TEA LXXXVI.
- The company is undertaking a detailed work program on the project, including 3D seismic data processing, and geological and geophysical studies.
- A world-class technical team with more than 200 years of collective experience was appointed by Condor Energy to develop and advance the TEA LXXXVI offshore block.
- The company's other projects include the Georgina Basin project (EP-127) and the Sasanof Prospect (WA-519-P).
Key Project
TEA LXXXVI Project
This oil and gas block is located on the northwest coast of Peru in the Tumbes basin, in water depths that range from 100 meters to 1,500 meters. The project spans 4,858 square kilometers and is surrounded by historical and current producing oil and gas fields. The block includes the Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day. In the south is the Talara basin, which is one of the most productive basins in Peru having produced more than 1.6 billion barrels of oil. To the southeast is the Alto-Pena Negra oil field, one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day and with a total historical production of more than 143 million barrels of oil.
The project benefits from excellent infrastructure, including a refinery only 70 kilometers away.
Project Highlights:
- Undrilled Area in a Proven Hydrocarbon Basin System: Exploration in the early 1970s showed the presence of oil. Historical data from 2D seismic surveys and more than 3,800 square kilometers of 3D seismic surveys are available for processing.
- Seismic Reprocessing Targeting Underway: Seismic reprocessing targeting has commenced at the extensive Bonito and Volador prospects in the southern portion of the company’s 4,585-square-kilometer offshore Peru oil and gas block.
- Piedra Redonda Contains ‘Best Estimate’ Contingent and Prospective Resources: Covered by the company’s license area is the Piedra Redonda that contains ‘best estimate’ contingent resources of 404 billion cubic feet plus best estimate prospective resources of 2.2 trillion cubic feet of gas audited by Netherland, Sewell & Associates.
- High Potential Bonito, Volador and Raya Prospects:
- Exploration activities showed additional deeper stacked targets identified in the proven oil-bearing Zorritos Formation at Bonito.
- The company also identified the large-scale stratigraphic and structural trap potential (up to 59 square kilometers of the Raya prospect and selected an area of 400 square kilometers as the second reprocessing area.
- The 40 square-kilometer Volador prospect was identified by anomalously bright amplitudes within the Cardalitos Formation, which unconformably overlies the Zorritos Formation.
Management Team
Matt Ireland - Non-executive Chairman
Matt Ireland, a partner at Steinepreis Paganin, is a highly experienced corporate and commercial lawyer with extensive experience in corporate governance and compliance matters as well as in mining and oil & gas transactions including joint venture agreements, M&A transactions, capital raisings and asset acquisitions/disposals. Ireland graduated from Murdoch University with a Bachelor of Laws and a Bachelor of Commerce in 2002 and was admitted to the Supreme Court of New South Wales in 2003 and the Supreme Court of Western Australia in 2004.
Scott Macmillan - Non-executive Director
Scott Macmillan is the managing director and founder of Invictus Energy Limited (ASX:IVZ) which, since listing on the ASX in 2018, has seen Invictus grow substantially in value from a microcap frontier explorer to an emerging oil and gas developer. Invictus Energy is an oil and gas company opening one of the last untested large fronter rift basins in onshore Africa. Macmillan is a reservoir engineer with more than 15 years of experience in oil and gas exploration, field development planning, reserves and resources assessment, reservoir simulation, commercial valuations and business development. Before founding Invictus, Macmillan worked as a senior reservoir engineer at Woodside Energy and AWE, during which time he participated in large offshore oil and gas field operations and the development of the Waitsia Gas Field.
Ricardo Garzon Rangel – Non-executive Director
Ricardo Garzon Rangel is an industrial engineer and energy economist with over 15 years international experience in oil and gas and mineral exploration projects. As a dual Australian and Colombian citizen, Garzon Rangel has a depth of experience in Latin America and has a proven ability to establish relationships with governments and other industry participants.
Garzon Rangel has a Bachelor degree of Industrial Engineering from Universidad Distrital Francisco Jose de Caldas in Bogotá Colombia, an MSc in Energy Economics and Management from Curtin University and is a member of the Society of Petroleum Engineers (SPE).
Lloyd Flint – Company Secretary
Lloyd Flint, BAcc, FINSIA and MBA is a chartered accountant with over 25 years’ experience in the corporate and financial services arena. He has held a number of management and senior administrative positions as well as providing corporate advisory services as a consultant to corporate clients.
Daydream-2 Update
HIGHLIGHTS
- On site operations at Daydream-2 have recommenced
- High pressure noted at wellhead
The on-site operations for the Daydream-2 stimulation and testing program have now recommenced with Elixir’s contracting staff returning to the well-site to prepare for the arrival of the coil tubing unit (CTU). This unit was recently imported from New Zealand to undertake work for the Company and its neighbouring Operator.
The CTU operated by Condor Energy (on a previous well location)
As part of these preparations, pressure at the Daydream-2 wellhead was recently measured at 3,410 psi - despite having a full column of saline water in the hole. Although the pressure is safely contained behind two separate barriers and presents no issues with respect to the planned work program, the high pressure was unexpected. The likely cause of this anomalously high wellhead pressure could be:
1. The temporary plug that separates the high pressure Lorelle sandstone from the remainder of the wellbore has been leaking; and/or,
2. Perforations that were placed above the Lorelle sandstone (in what were assessed to be low quality siltstones during the recent removal of a blockage in the well) - may now be contributing high pressure gas.
The upcoming program will now attempt to clarify this issue as Elixir moves to flow test the Lorelle sandstone and stimulate other zones higher in the hole.
Elixir’s Managing Director, Mr Neil Young, said: “The unexpected high pressure at the Daydream-2 wellhead is yet another example of the great potential of the Taroom Trough to contribute gas from an enormously thick gross section containing multiple sedimentary forms. The next month or so will be an exciting time for Elixir as we continue to learn more and more from what has been an incredibly valuable appraisal well to date.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
June 2024 Quarterly Activities Report
Highlights
- Tumbes basin source rocks maturity maps demonstrate the basin’s potential for oil generation over the majority of the TEA
- Raya and Bonito Prospects shown to be favourably located with respect to mature source rocks within the peak oil generating zone
- Depositional models for the Zorritos and Mancora Formations provides significant insight on the Tumbes Basin’s target source rocks
- Additional deeper stacked targets identified in the proven oil-bearing Zorritos Formation represents significant upside for the Bonito Prospect
- TOTAL Energies enters the Tumbes basin
Figure 1 – TEA Prospects and 3D Seismic areas selected for reprocessing
Technical Evaluation Agreement (TEA) LXXXVI - Offshore Oil and Gas Block (CND 80% Working Interest)
During the reporting quarter, Condor and US-based joint venture partner Jaguar Exploration Limited (Jaguar), continued the evaluation of the 4,858km2 Technical Evaluation Agreement (TEA or block) offshore Peru in conjunction with the Company’s technical advisors Havoc Services Pty Ltd (Havoc).
Condor’s block comprises over 3,800km2 of existing 3D seismic data from which an aggregate of 1,000km2 have been selected to undergo pre-stack depth migration (PSDM) reprocessing and interpretation across three discrete highly prospective areas (Figure 1). The three areas selected for reprocessing were chosen following the identification of the Raya and Bonito prospects and the Piedra Redonda gas field.
The Raya and Bonito prospects are large features in the Zorritos Formation, which present structural closure at multiple levels and the potential for stacked pay with multiple Zorritos reservoir-seal pairs present. The Piedra Redonda gas field contains a gross ‘Best Estimate’ Contingent Resources of 404 billion cubic feet (Bcf) plus ‘Best Estimate’ Prospective Resources# of 2.2 trillion cubic feet (Tcf) of gas contained within the Company’s TEA.
#Cautionary Statement: The estimated quantities of gas that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons.
Work completed during the quarter included the completion of a fast-track regional interpretation of the whole 3,800km2 of 3D legacy seismic data, the identification of different petroleum systems based on maturation mapping of the main source rocks in the basin and the identification of additional deeper targets at the Bonio prospect. Also, subsequent to the end of the quarter, the Company reported the completion of a field geology trip on the onshore section of the Tumbes basin.
Click here for the full ASX Release
This article includes content from Condor Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Condor Energy Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects