Energy Co. Buys First LNG Production Facility
Research Report

1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Research Capital Corp., Condor Energies Inc., May 14, 2025

Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. Relevant Disclosures Applicable to Companies Under Coverage Information about Research Capital Corporation's Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating catergories is available on our website at www.researchcapital.ca General Disclosures Research Capital Corporation publishes research and investment recommendations for the use of its clients. The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your Investment Advisor or Portfolio Manager for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Canadian Investment Regulatory Organization, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Our distribution of ratings is available on our website at www.researchcapital.com Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. RC USA INC. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report. This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants

Condor Energies Inc. (CDR:TSX.V) acquired its first modular liquid natural gas (mLNG) production facility in Kazakhstan for US$6.5 million (US$6.5M), "which will form the cornerstone of the country's inaugural LNG production," reported Bill Newman, Research Capital Corp. analyst, in a May 14 research note.

"Overall, we view this as a positive update," Newman wrote.

194% Uplift Possible

Research Capital maintained its CA$5.15 per share (CA$5.15/share) target price on Condor, trading at the time of the report at about CA$1.75/share, noted Newman. The target implies a potential return of 194%.

The company is rated Speculative Buy. It has 67.4 million (67.4M) basic shares outstanding and 75.5M fully diluted shares outstanding. Its market cap is CA$118M. Its 52-week range is CA$0.86–2.90/share.

Progress in Kazakhstan

Newman reviewed the LNG projects Condor has underway in Kazakhstan. The oil and gas company's acquisition of the mLNG facility, which can produce 48,000 gallons per day (48,000 gal/d) of LNG, or 80 metric tons per day, is completed. Construction needs finishing and commissioning done, requiring another US$18.6M (CA$26.7M). To fund this, the company is finalizing LNG offtake agreements and pursuing multiple financing options. Facility fabrication is expected to be done in Q4/25 and followed by initial LNG production in Q2/26.

The Canadian company secured a third feed gas allocation, which will allow it to maximize use of the new facility and support expansion. It plans two more, same-size mLNG units at the site.

Also in Kazakhstan, Condor continues to make progress with the mLNG developments at its Alga and Kuryk sites. At Alga, a final investment decision is expected in Q4/25 and production at a 100,000 gal/d facility anticipated in Q2/27. The potential 125,000 gal/d Kuryk project is still being evaluated.

Altogether, noted the analyst, Condor's planned LNG facilities in Kazakhstan are expected to produce volumes equivalent to 1.5 million liters of diesel per day, providing a cleaner, more cost effective fuel alternative. This is particularly favorable given the area's expanding transportation and industrial sectors.

"These projects, supported by multiple secured gas allocations, position Condor as a first mover in Central Asia's LNG market," Newman wrote.

Updates on Uzbekistan

In Uzbekistan, Condor's Q1/25 production averaged 11,179 barrels of oil equivalent per day (11,179 boe/d), a 6% increase over Q4/24, attributed to infrastructure optimization and successful workovers, including perforating new pay zones, applying stimulation techniques and installing artificial lift systems, Newman reported. The company's three recently completed workovers together added 1,950 boe/d to production, based on initial seven-day rates.

Later this year, in Q3/25, Condor plans to commence a multi-well drill program, incorporating both infill vertical and horizontal wells, and multilateral. Also, the company is commissioning three additional in-field flowline water separation units, expected to boost production.

"The company continues to build natural gas production in Uzbekistan through low-cost, high-impact workovers and an upcoming multi-well drilling program, further reinforcing its diversified growth strategy," wrote Newman.

What to Watch For

Condor's near-term catalysts include production updates from Uzbekistan and in Q2/26, first LNG production from Kazakhstan, Newman noted.

Drilling and testing of two wells to confirm lithium concentrations, in Kazakhstan, also is slated for the future, the date yet to be determined.