What the TEA 86 Work Completion and Licence Conversion Application Mean for Condor Energy

Sonal Goyal

29 September 2026 10:54 PM AEST

What the TEA 86 Work Completion and Licence Conversion Application Mean for Condor Energy

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Condor Energy Limited (ASX:CND) released its June 2026 Quarterly Activity Report on 21 July 2026, reporting a series of advances at its TEA 86 block in offshore Peru. The standout developments are: the completion of all Technical Evaluation Agreement (TEA) work commitments ahead of schedule; the submission of an application to convert TEA 86 into an Exploration and Exploitation Licence Contract; and the consolidation of Condor's interest to 100% — increasing its net attributable interest to over 3.3 billion barrels (2U) of prospective resource and 1 Tcf (2C) of contingent gas resource. A A$2.25 million Capital raising was completed to support these activities.

TEA Work Programme Completion and Licence Conversion

Condor successfully completed all TEA 86 work commitments ahead of schedule. The technical work materially enhanced the company's understanding of the Basin and strengthened the exploration portfolio. Following completion, Condor submitted an application to convert TEA 86 into an Exploration and Exploitation Licence Contract — a status that permits exploration, mining, processing, and sale activities — positioning the company for the next phase of exploration and potential development.

100% Ownership and Resource Position

Condor consolidated its interest in TEA 86 to 100%, increasing its net attributable interest to over 3.3 billion barrels (2U) prospective resource and 1 Tcf (2C) contingent gas resource from the Piedra Redonda gas discovery. Strategic partnering discussions continued during the quarter, with industry participants progressing technical and commercial Due Diligence through the company's virtual data room. Gas commercialisation discussions continued with multiple parties regarding the Piedra Redonda gas project.

Capital Raising

Condor completed an A$2.25 million capital raising during the quarter to support licence conversion, exploration activities, and gas commercialisation. The raising strengthened the Balance Sheet ahead of the licence conversion process and ongoing partnering and commercialisation discussions with PeruPetro and potential partners.

About the Company

Condor Energy Limited is an ASX-listed oil and gas exploration company with a portfolio of offshore Peru blocks. The Piedra Redonda gas discovery within TEA 86 is the company's primary asset, with 1 Tcf (2C) of contingent gas resource and over 3.3 billion barrels (2U) of prospective resource across the broader block. The company's strategy is to advance the Piedra Redonda commercialisation and secure a strategic partner for the next phase of exploration.

Risks

The licence conversion application is subject to PeruPetro and Peruvian government approval. Delays or conditions could affect Condor's programme timeline.

No binding strategic partner or farm-in agreement has been announced. Securing a capable, well-funded partner for offshore Peru is complex and time-consuming.

The 3.3 billion barrels 2U prospective resource is an unrisked exploration estimate — it does not represent reserves or contingent resources and carries substantial geological risk.

Offshore Peru exploration requires significant capital well beyond Condor's current size — a major capital commitment from a partner is essential for any drill programme.

South American energy policy and regulatory settings, while supportive in principle, can change and affect commercial terms for developers.

What to Watch Ahead

PeruPetro approval of TEA 86's conversion to an Exploration and Exploitation Licence Contract — the critical regulatory step enabling next-phase activities.

Announcement of a strategic partner or farm-in agreement for TEA 86, providing both capital and technical credibility.

Piedra Redonda gas commercialisation progress — any gas sales framework or offtake agreement would substantially de-risk the contingent resource.

Any exploration well proposal for TEA 86, requiring licence conversion and a funded partner as prerequisites.

Next Quarterly Report providing the first update on licence conversion status and partnering progress.

FAQs

Q: What is the difference between a TEA and an Exploration and Exploitation Licence Contract in Peru?

A: A Technical Evaluation Agreement (TEA) is a preliminary exploration tenure granted by PeruPetro that allows a company to conduct technical work on a defined area without committing to a full exploration programme. It is an assessment phase. An Exploration and Exploitation Licence Contract is a more formal petroleum contract that grants the holder the right to conduct exploration, appraise discoveries, and develop and produce hydrocarbons found in the area. The conversion from TEA to licence is a significant regulatory step that expands Condor's rights and obligations in the block.

Q: What is the Piedra Redonda discovery?

A: Piedra Redonda is a gas discovery within TEA 86 offshore Peru that holds 1 Tcf (2C) of contingent gas resource. It represents the primary commercial asset within the TEA 86 block, providing the development rationale for the licence conversion and gas commercialisation discussions. South American gas markets — particularly for offshore discoveries accessible to emerging LNG or pipeline infrastructure — are receiving growing investment attention as regional energy security concerns increase.

Q: What does 3.3 billion barrels (2U) prospective resource mean?

A: The 2U (mid-case or P50) prospective resource estimate of 3.3 billion barrels represents the estimated volume of petroleum that may potentially be recovered from Condor's undrilled exploration prospects, at a 50% probability of occurrence. This is a speculative estimate for exploration potential rather than a confirmed discovery. The number reflects the geological scale of what the block could contain if successfully drilled, but is subject to very high geological and commercial risk prior to any drilling confirmation.

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