Condor Energy's Quarterly Report Highlights Tumbes Basin Potential
CONDOR ENERGY LIMITED (CND) Share Update July 2024 Monday 29th
Condor Energy Reports Positive Developments in Tumbes Basin Exploration
Condor Energy Limited (ASX: CND) has released its June 2024 Quarterly Activities Report, showcasing significant advancements and promising prospects in the Tumbes Basin offshore Peru.
Instant Summary:
- Tumbes basin source rocks maturity maps demonstrate potential for oil generation.
- Raya and Bonito Prospects are favorably located within the peak oil generating zone.
- Depositional models for the Zorritos and Mancora Formations provide significant insights.
- Additional deeper targets identified in the Zorritos Formation offer significant upside.
- TOTAL Energies enters the Tumbes basin, validating Condor's premier block position.
Exploration Progress
During the quarter ending 30 June 2024, Condor Energy, along with its US-based joint venture partner Jaguar Exploration Limited, continued to evaluate the 4,858 km² Technical Evaluation Agreement (TEA) offshore Peru. The evaluation included reprocessing 1,000 km² of 3D seismic data across three highly prospective areas, focusing on the Raya and Bonito prospects and the Piedra Redonda gas field.
The Raya and Bonito prospects, located in the Zorritos Formation, show structural closure at multiple levels and potential for stacked pay zones. The Piedra Redonda gas field contains a gross 'Best Estimate' Contingent Resources of 404 billion cubic feet (Bcf) and 'Best Estimate' Prospective Resources of 2.2 trillion cubic feet (Tcf) of gas.
Technical Insights
Condor's team completed a fast-track interpretation of the entire 3D seismic dataset, focusing on formations proven to host multiple oil and gas discoveries within the Tumbes Basin. The regional maps produced from this interpretation will help define new prospective features and provide a framework for evaluating various petroleum system elements.
During the quarter, Condor also generated maturity maps for the main source rocks in the Tumbes Basin, identifying two well-differentiated petroleum systems. The Heath Formation source rocks are oil-mature across most of the TEA area, while the Mancora Formation source rocks are at the top of the gas generation maturity window downdip from the Piedra Redonda field.
Strategic Developments
Global oil and gas super-major Total Energies E&P took a significant position offshore Peru by securing three TEAs adjacent to Condor's existing TEA. This move is a significant endorsement of the Tumbes Basin's prospectivity and validates Condor's premier block position within the basin.
Condor also reported the completion of a geological field campaign on the onshore section of the Tumbes Basin. The campaign provided valuable sedimentological and stratigraphic data, aiding in the construction of depositional models for the Zorritos and Mancora reservoirs.
The advancements in the Tumbes Basin exploration and the entry of Total Energies into the region are likely to have a positive impact on Condor Energy's stock. The identification of additional deeper targets and the validation of the basin's potential by a major player like Total Energies could boost investor confidence and drive stock prices higher.
Investor Reaction:
Analysts are likely to view the developments positively, given the potential for significant oil and gas discoveries in the Tumbes Basin. The entry of Total Energies is seen as a strong endorsement of the region's prospectivity, which could lead to increased investor interest in Condor Energy.
Conclusion:
Investors should keep a close eye on Condor Energy's ongoing exploration activities in the Tumbes Basin. The company's strategic developments and promising prospects could offer substantial returns. Staying informed about further updates and results from the exploration efforts will be crucial for making informed investment decisions.