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Condor Announces 2024 Year-End Results
| As at, and for the years ended December 31, ($000's except for share amounts) | 2024 | 2023 | 2022 | ||||
| Natural gas and condensate sales | 66,626 | 643 | 3,607 | ||||
| Total revenue (sales less royalties) | 54,323 | 552 | 3,119 | ||||
| Net income (loss) | 3,493 | (11,392 | ) | (3,064 | ) | ||
| Net loss attributable to common shareholders | (4,072 | ) | (11,392 | ) | (3,064 | ) | |
| Net loss per share (basic and diluted) | (0.07 | ) | (0.20 | ) | (0.07 | ) | |
| Total assets | 66,607 | 6,769 | 10,062 | ||||
| Non-current financial liabilities | 9,364 | 5,504 | 99 |
RESULTS OF OPERATIONS
Reserves
The Company's 2024 reserves, all in Uzbekistan, were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (see“Reserves Advisory”). The gross Company reserves as of December 31, 2024 are summarized by volume and net present value (after tax) discounted at 10% (“NPV10”) in USD as follows:
| Gross Company Reserves as of December 31, 2024 | Gas (MMcf) | Condensate (Mbbl) | Boe* Reserves (Mboe) | NPV 10 Before Tax (in USD 000's) | ||||
| Proved | 89,161 | 366 | 15,227 | 34,828 | ||||
| Probable | 18,591 | 120 | 3,278 | 15,547 | ||||
| Proved plus Probable | 108,112 | 486 | 18,505 | 50,375 |
( * based on gas/boe conversion of 6 to 1)
During the fourth quarter of 2023, the recoverable amount of the Company's properties in Türkiye were deemed to be $Nil and there are no economic reserves attributed to the Poyraz Ridge or Destan properties as of December 31, 2023.
Production
| For the three months ended December 31 | 2024 | 2023 | Change | |||
| Natural gas (Mcf) | ||||||
| Uzbekistan | 5,637,255 | - | 5,637,255 | |||
| Türkiye | 2,154 | 4,533 | (2,379 | ) | ||
| 5,639,409 | 4,533 | 5,634,876 | ||||
| Condensate (barrels) | ||||||
| Uzbekistan | 27,541 | - | 27,541 | |||
| Türkiye | - | - | - | |||
| 27,541 | - | 27,541 |
| For the years ended December 31 | 2024 | 2023 | Change | |||
| Natural gas (Mcf) | ||||||
| Uzbekistan | 18,431,933 | - | 18,431,933 | |||
| Türkiye | 29,478 | 38,097 | (8,619 | ) | ||
| 18,461,411 | 38,097 | 18,423,314 | ||||
| Condensate (barrels) | ||||||
| Uzbekistan | 77,386 | - | 77,386 | |||
| Türkiye | - | 9 | (9 | ) | ||
| 77,386 | 9 | 77,377 |
Operating Netback – Uzbekistan
| 2024 Operating netback 1 ,2 | Uzbekistan Natural Gas | |||
| Q4 2024 | YTD 2024 | |||
| Natural gas sales ($000's) | 18,731 | 60,135 | ||
| Royalties ($000's) | (3,435 | ) | (11,039 | ) |
| Production costs ($000's) | (7,988 | ) | (25,064 | ) |
| Transportation and selling ($000's) | (657 | ) | (2,129 | ) |
| Operating netback ($000's)1,2 | 6,651 | 21,903 | ||
| Natural gas sales (Mcf) | 5,255,725 | 17,149,079 | ||
| Natural gas sales ($/Mcf) | 3.56 | 3.51 | ||
| Royalties ($/Mcf) | (0.65 | ) | (0.64 | ) |
| Production costs ($/Mcf) | (1.52 | ) | (1.46 | ) |
| Transportation and selling ($/Mcf) | (0.13 | ) | (0.12 | ) |
| Operating netback ($/Mcf)1,2 | 1.26 | 1.29 |
| 2024 Operating netback 1 ,2 | Uzbekistan Condensate | |||
| Q4 2024 | YTD 2024 | |||
| Condensate sales ($000's) | 2,199 | 6,097 | ||
| Royalties ($000's) | (440 | ) | (1,211 | ) |
| Production costs ($000's) | (184 | ) | (508 | ) |
| Transportation and selling ($000's) | (10 | ) | (29 | ) |
| Operating netback ($000's)1,2 | 1,565 | 4,349 | ||
| Condensate sales (bbl) | 26,823 | 76,544 | ||
| Condensate sales ($/bbl) | 81.98 | 79.65 | ||
| Royalties ($/bbl) | (16.40 | ) | (15.82 | ) |
| Production costs ($/bbl) | (6.86 | ) | (6.64 | ) |
| Transportation and selling ($/bbl) | (0.37 | ) | (0.38 | ) |
| Operating netback ($/bbl)1,2 | 58.35 | 56.81 |
1 Operating netback is a non-GAAP measure and is a term with no standardized meaning as prescribed by GAAP and may not be comparable with similar measures presented by other issuers. See“Non-GAAP Financial Measures” in this new release. The calculation of operating netback is aligned with the definition found in the Canadian Oil and Gas Evaluation Handbook.
2 Amounts and per unit measures are only presented for the Uzbekistan segment.
NON-GAAP FINANCIAL MEASURES
The Company refers to“operating netback” in this news release, a term with no standardized meaning as prescribed by GAAP and which may not be comparable with similar measures presented by other issuers. This additional information should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. Operating netback is calculated as sales less royalties, production costs and transportation and selling on a dollar basis and divided by the sales volume for the period on a per Mcf basis for natural gas and per boe basis for condensate. This non-GAAP measure is commonly used in the oil and gas industry to assist in measuring operating performance against prior periods on a comparable basis and has been presented to provide an additional measure to analyze the Company's sales on a per unit basis and the Company's ability to generate funds.
RESERVES ADVISORY
This news release includes information pertaining to the Evaluation of Crude Oil and Natural Gas Reserves as of December 31, 2024 prepared by independent reserves evaluator McDaniel & Associates Consultants Ltd. (“McDaniel”). The report was prepared by qualified reserves evaluators in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and is based on McDaniel pricing effective December 31, 2024. Additional reserve information as required under NI 51-101 is included in the Company's Annual Information Form filed on SEDAR+ at: .
Statements relating to reserves are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated. The reserve estimates described herein are estimates only. The actual reserves may be greater or less than those calculated. Estimates with respect to reserves that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and analogy to similar types of reserves, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result in variations, which may be material, in the estimated reserves.
References herein to barrels of oil equivalent (“boe”) are derived by converting gas to oil in the ratio of six thousand standard cubic feet (“Mcf”) of gas to one barrel of oil based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf to 1 barrel, utilizing a conversion ratio at 6 Mcf to 1 barrel may be misleading as an indication of value, particularly if used in isolation.
"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.
"Probable" reserves are those additional reserves that are less certain to be recovered than Proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable reserves.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as“expect”,“plan”,“estimate”,“may”,“will”,“should”,“could”,“would”,“increase”,“introduce”,“provide”,“generate”,“apply”,“include”,“conduct”,“prepare”,“require”,“continue”,“reduce”, or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning: the timing and ability to execute the Company's growth and sustainability strategies including the financing for these growth and sustainability strategies; the timing and ability to operate and increase production and overall recovery rates at eight gas fields in Uzbekistan; the timing and ability to deliver repeatable, capital efficient production gains from future workovers; the timing and ability to increase the number of in-field flowline water separation systems; the timing and ability to increase domestic gas supply and contribute to carbon emissions reductions; the timing and ability to become a valuable supplier of secure, stable and sustainable energy and mineral needs in the geo-politically strategic Central Asia region; the timing and ability to realize multiple revenue streams that remain robust across varying economic conditions and geo-political priorities; the timing and ability to conduct production enhancement services, produce natural gas and realize domestic gas sales proceeds; the timing and ability to increase production by implementing artificial lift, workover and drilling programs; the timing and ability to investigate deeper horizons; the timing and ability to reprocess 3-D seismic data and conduct a 3-D seismic program; the timing and ability for the 3D seismic data to provide higher resolutions, more accurately characterize the reservoirs and identify new targets; the timing and ability to collect reservoir and production data; the timing and ability to evaluate existing pipeline and facilities infrastructure for optimization of water handling, field compression and the in-field gathering network; the timing and ability of the Company to conduct infill drilling and well deepening programs in 2025; well testing rates and results may not be indicative of future production results; the timing and ability to use the two natural gas allocations from the Government of Kazakhstan as feed gas for the Company's modular LNG production facilities; the timing and ability to liquefy gas to produce LNG; the timing and ability to fuel LNG powered rail locomotives and large mine haul trucks; the timing and ability to contribute to carbon emissions reductions by displacing diesel fuel usage; the timing and ability to conduct detailed engineering; the timing and ability to confirm LNG volume commitments with end-users; the Company's expectations in respect of the future uses of LNG; the timing and ability to obtain funding and proceed with construction of LNG production facilities; the sufficiency of the second natural gas allocation to power mainline rail locomotives; the timing and ability to sign definitive purchase agreements, acquire, transport and construct the LNG facility; the timing and ability of the LNG facility to produce 48,000 gallons per day; the timing and ability to secure LNG off-taker agreements; the potential for the Sayakbay and Kolkuduk licenses to contain commercial deposits; future critical minerals testing results; the material untapped hydrocarbon potential in the carbonate formations of the Company's license area; the timing and ability to fund, permit and complete planned activities including drilling two additional wells and conduct preliminary engineering for the production facilities; the timing and ability to optimize the planned method for direct lithium extraction; the timing and ability to generate a report in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects; the timing and ability to commence exploration mining activities to evaluate the potential for commercial lithium brine deposits; projections and timing with respect to natural gas and condensate production; expected markets, prices and costs for future gas and condensate sales; the timing and ability to obtain various approvals and conduct the Company's planned exploration and development activities; the timing and ability to access natural gas pipelines; the timing and ability to access domestic and export sales markets; anticipated capital expenditures; forecasted capital and operating budgets and cashflows; anticipated working capital; sources and availability of financing for potential budgeting shortfalls; the timing and ability to obtain future funding on favourable terms, if at all; general business strategies and objectives; the timing and ability to obtain exploration contract, production contract and operating license extensions; the potential for additional contractual work commitments; the ability to meet and fund the contractual work commitments; the satisfaction of the work commitments; the results of non-fulfilment of work commitments; projections relating to the adequacy of the Company's provision for taxes; the expected impacts of adopting amendments to IFRS accounting policies; and treatment under governmental regulatory regimes and tax laws.
This news release also includes forward-looking information regarding health risk management including, but not limited to: travel restrictions including shelter in place orders, curfews and lockdowns which may impact the timing and ability of Company personnel, suppliers and contractors to travel internationally, travel domestically and to access or deliver services, goods and equipment to the fields of operation; the risk of shutting in or reducing production due to travel restrictions, Government orders, crew illness, and the availability of goods, works and essential services for the fields of operations; decreases in the demand for oil and gas; decreases in natural gas, condensate and crude oil prices; potential for gas pipeline or sales market interruptions; the risk of changes to foreign currency controls, availability of foreign currencies, availability of hard currency, and currency controls or banking restrictions which restrict or prevent the repatriation of funds from or to foreign jurisdiction in which the Company operates; the Company's financial condition, results of operations and cash flows; access to capital and borrowings to fund operations and new business projects; the timing and ability to meet financial and other reporting deadlines; and the inherent increased risk of information technology failures and cyber-attacks.
By its very nature, such forward-looking information requires Condor to make assumptions that may not materialize or that may not be accurate. Forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such risks and uncertainties include, but are not limited to: regulatory changes; the timing of regulatory approvals; the risk that actual minimum work programs will exceed the initially estimated amounts; the results of exploration and development drilling and related activities; prior lithium testing results may not be indicative of future testing results or actual results; imprecision of reserves estimates and ultimate recovery of reserves; historical production and testing rates may not be indicative of future production rates, capabilities or ultimate recovery; the historical composition and quality of oil and gas may not be indicative of future composition and quality; general economic, market and business conditions; industry capacity; uncertainty related to marketing and transportation; competitive action by other companies; fluctuations in oil and natural gas prices; the effects of weather and climate conditions; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals and the possibility that government policies or laws may change or government approvals may be delayed or withheld; changes in environmental and other regulations; risks associated with oil and gas operations, both domestic and international; international political events; and other factors, many of which are beyond the control of Condor. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs.
These risk factors are discussed in greater detail in filings made by Condor with Canadian securities regulatory authorities including the Company's Annual Information Form, which may be accessed through the SEDAR+ website ().
Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. The forward-looking information contained in this news release are made as of the date of this news release and, except as required by applicable law, Condor does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
ABBREVIATIONS
The following is a summary of abbreviations used in this news release:
| 3-D | Three dimensional |
| Mcf | Thousands of standard cubic feet |
| Mcf/d | Thousands of standard cubic feet per day |
| MMcf | Millions of standard cubic feet |
| bbl | Barrels of oil |
| Mbbl | Millions of barrels of oil |
| bopd | Barrels of oil per day |
| boe | Barrels of oil equivalent |
| boe/d | Barrels of oil equivalent per day |
| MT | Metric tonnes |
| NPV | Net Present Value |
| USD | United States Dollars |
| LNG | Liquefied Natural Gas |
| EV | Electric Vehicle |
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
For further information, please contact Don Streu, President and CEO or Sandy Quilty, Vice President of Finance and CFO at 403-201-9694.
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