Condor Production Surpasses 18,500 boe/d as the 2026 Multi-Well Drilling Program Continues to Outperform

Condor Energies posts record Uzbek production, up 71% year-over-year, with further drilling underway.

What the company is saying

Condor Energies reports a record production average of 18,582 boe/d in Uzbekistan over the past nine days, attributing this to sustained drilling success in Jurassic carbonate reservoirs. The company highlights that 11 wells have been drilled in 2026, with another two to four expected by year end, and emphasizes a 20% quarter-over-quarter and 71% year-over-year production increase for Q3 2026. The narrative stresses the strategic targeting of undeveloped reservoirs within a 282 km2 license area and the operational significance of the A-22 well at Andakli, which tested at 1,000 boe/d and demonstrated potential beyond conventional structural closures. CEO Don Streu frames these results as evidence of converting drilling success into production growth, despite a natural reservoir decline rate of 20% on legacy wells. The company also points to upcoming catalysts, including the NS-14 well at North Syuzma, the K-53 multilateral well at Kumli, and a field booster compression project slated for Q2 2027 commissioning. Condor clarifies that it recognizes 100% of PEC Project production volumes, with 51% of comprehensive income attributable to the company and 49% to a non-controlling interest holder.

What the data suggests

The disclosed production figures show strong operational momentum: Q3 2026 Uzbek production averaged 16,693 boe/d (16,240 boe/d natural gas, 454 bopd condensate), up 20% from Q2 2026 and 71% from Q3 2025. The nine-day record of 18,582 boe/d signals continued growth from the 2026 drilling program, which has delivered 11 wells with more planned. The A-22 well at Andakli tested at 6.0 MMscf/d (1,000 boe/d) over eight hours, though the liquid rate was primarily drilling fluids, not hydrocarbons. The company’s license area covers 282 km2, providing scale for further development. The production enhancement contract (PEC Project) structure means Condor recognizes 100% of production volumes, but only 51% of comprehensive income is attributable to the company, with 49% to the non-controlling interest. The 20% natural decline rate on legacy wells is being offset by new drilling. While the operational data is robust, forward-looking claims about future wells, the K-53 multilateral, and the field booster compression project lack quantified financial or production uplift details.

Analysis

The announcement presents a positive tone, highlighting record production and substantial year-over-year and quarter-over-quarter growth, all supported by specific operational data. However, a significant portion of the release is devoted to forward-looking statements about additional drilling, new wells, and infrastructure projects (such as the field booster compression project and LNG facility), for which no immediate financial or operational impact is disclosed. While the operational progress in Uzbekistan is well-evidenced, the benefits from the ongoing and planned capital-intensive projects are not imminent, with some (e.g., the booster compression project) not expected to be commissioned until mid-2027. The narrative inflates the signal by implying that future enhancements and expansions are certain, despite the lack of supporting detail on capital outlay, expected uplift, or profitability. The absence of profitability metrics (net income, EBITDA, cash flow) alongside production figures limits the ability to assess whether operational growth is translating into shareholder value, capping the true signal at weak_positive. The gap between narrative and evidence is most pronounced in the forward-looking claims about future drilling campaigns and infrastructure projects.

Risk flags

• ●Operational risk remains elevated due to the reliance on continued drilling success to offset a 20% natural reservoir decline rate on legacy wells. If new wells underperform or encounter technical issues, production could quickly fall back.
• ●The forward-looking claims about future drilling campaigns, the K-53 multilateral well, and the field booster compression project are not supported by detailed capital expenditure figures, timelines, or expected production uplift, making it difficult to assess the likelihood and scale of future gains.
• ●The PEC Project structure means that only 51% of comprehensive income from Uzbek production is attributable to Condor, with 49% going to a non-controlling interest holder. This limits the direct financial benefit to shareholders from headline production figures.
• ●The company’s expansion into LNG and critical minerals projects in Kazakhstan is mentioned but lacks operational or financial detail, introducing potential execution and capital allocation risk if these projects proceed without clear milestones or returns.

Bottom line

Condor Energies is delivering tangible operational growth in Uzbekistan, with Q3 2026 production up 71% year-over-year and a recent nine-day record of 18,582 boe/d. The current drilling program is driving these gains, and additional wells planned by year end could sustain momentum. However, only 51% of the comprehensive income from this production is attributable to Condor due to the PEC Project structure, diluting the impact of headline volumes. Near-term catalysts include results from the NS-14 and K-53 wells, but the field booster compression project and Kazakhstan initiatives are longer-term and lack detail on financial impact. The announcement is credible on current production but aspirational on future enhancements, with limited disclosure on capital outlays or expected uplift. Investors should focus on realized production growth, monitor the performance of new wells, and seek more detail on the economics of upcoming projects.

Announcement summary

(TSX:CDR) Condor Energies Inc. announced record production in Uzbekistan, achieving an average of 18,582 boe/d over the past nine days, driven by sustained drilling success from Jurassic carbonate reservoirs. In 2026, 11 wells have been drilled with another two to four wells planned for completion by year end. Third quarter 2026 production in Uzbekistan averaged 16,693 boe/d, consisting of 16,240 boe/d (97.4 MMscf/d) of natural gas and 454 bopd of condensate, representing a 20% increase over the second quarter of 2026 and a 71% increase over the third quarter of 2025. The company is targeting previously undeveloped reservoirs within its 282 km2 (~109 sections equivalent) license area. Most 2026 drilling has focused on the Kumli license, but one rig was recently moved to the northern Andakli license to drill the Andakli-22 horizontal well (A-22) outside existing mapped structural closure boundaries. The A-22 well, after acid stimulation, was tested for 8 hours and yielded an average flowing rate of 6.0 MMscf/d (1,000 boe/d) on a 1” choke at 444 psi average flowing tubing pressure, with no condensate produced and a liquid rate of 667 barrels per day, primarily drilling and completion fluids and spent acid. The A-22 well was immediately tied into the gas sales line and continues to produce while cleaning up. Numerous Andakli follow-up wells are planned for the 2027 drilling campaign. After A-22, the rig was moved to the North Syuzma field to drill the NS-14 vertical well targeting deeper Jurassic clastic stacked reservoir sands, with a planned depth of up to 3,000 meters and testing expected by the end of November 2026. Pending test results, up to three additional vertical and three additional horizontal follow-up locations could be drilled. The company has also started drilling the K-53 well, Uzbekistan’s first multilateral well at a separate Kumli license structure, with two lateral sections targeting separate carbonate reservoirs from a single wellbore. K-53 is expected to be completed by the end of November and tested in December 2026. Don Streu, President and CEO, stated that Q3 2026 production in Uzbekistan increased 71% versus Q3 2025 despite a natural reservoir decline rate of 20% on legacy wells. The company recognizes 100% of the production volumes, sales volumes, sales revenues, royalties, and expenses related to the production enhancement contract project in Uzbekistan (PEC Project), with 49% of comprehensive income (loss) attributable to the non-controlling interest holder and 51% attributable to the company. Production performance is expected to be further enhanced by a field booster compression project currently being fabricated for commissioning in the second quarter of 2027. Condor is also pursuing projects in Kazakhstan, including constructing and operating Central Asia’s first LNG diesel substitution facility and developing critical minerals from brines.

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