Key Highlights

  • Condor received formal qualification from PERUPETRO S.A. for a proposed licence over offshore Block Z-72.
  • The company now moves to direct negotiations on the licence contract terms.
  • Execution remains subject to agreement on final terms and required government approvals.
  • The Tumbes Basin TEA covers 4,858 km2 and includes the Piedra Redonda gas field.

Condor Energy Limited (ASX:CND) announced on 14 October 2026 that it has received formal qualification from PERUPETRO S.A., Peru's state-owned agency that negotiates and administers oil and gas contracts. The step relates to a proposed exploration and exploitation licence contract over offshore Block Z-72, north of Peru.

What the qualification covers

The qualification relates to Condor exercising a first option under its Technical Evaluation Agreement, or TEA. It confirms the company's eligibility to assume the obligations of a 100% interest in a Licence Contract for the Exploration and Exploitation of Hydrocarbons. According to the release, it follows an assessment of Condor's legal, financial and technical capabilities and is a required step towards formal licence award. Block Z-72 is the Perupetro designation for the proposed licence area.

Next steps in the process

Condor will now move to direct negotiations with Perupetro on the licence contract terms, alongside community consultation. The company states that execution remains subject to agreement on final terms and the required government approvals. The release does not give a timetable for negotiations or approvals.

The Tumbes Basin TEA

Condor entered TEA LXXXVI with Perupetro in August 2023 together with its partner Jaguar Exploration, Inc. The agreement covers 4,858 km2 over almost all of the Peruvian offshore Tumbes Basin, in water depths from 50 m to 1,500 m, and Condor is described as the 100% holder. The area contains the undeveloped shallow-water Piedra Redonda gas field, with Best Estimate Contingent Resources of 1 Tcf of natural gas on a 100% gross basis. An independent assessment by NSAI reported a combined best estimate gross unrisked prospective resource of 3 billion barrels of oil across the Bonito, Raya, Salmon, Caballa and Tiburon prospect areas. With the internally estimated Raya West prospect included, the total exceeds 3.3 billion barrels.

Risks shareholders should weigh

Prospective resources are estimates of quantities that may potentially be recovered from undiscovered accumulations, and the release notes they carry both a risk of discovery and a risk of development. Contingent resources require further evaluation before commercial development is confirmed. The licence has not been awarded, and negotiations could produce terms different from those Condor seeks. Offshore exploration also requires substantial funding, and the release does not name any funding partner or gas customer agreement.

What to watch next

Developments include progress in the licence contract negotiations, community consultation, the required government approvals and any announcement of strategic partners or gas customers.

Looking ahead

Condor has cleared the qualification stage with Perupetro and now moves into negotiation on Block Z-72, with licence execution still dependent on final terms and government approval.