Condor Energies Shares Jump 16% After Uzbekistan Government Deal

By Robb M. Stewart

Condor Energies shares rallied Tuesday after the Canadian company reached an agreement with the government of Uzbekistan and national energy company JSC Uzbekneftegaz to enhance natural gas production at eight gas fields.

In morning trading, the shares were 16% higher at C$0.53, widening their year-to-date gain to 43%.

Condor said it signed a heads of agreement with Uzbekneftegaz and Uzbekistan's Ministry of Energy and Ministry of Mining Industry and Geology to establish a detailed framework for final negotiations and approval of definitive legal documents for an investment project.

The project would assume full operations of eight existing gas-condensate fields and two additional exploration blocks in the surrounding area in order to increase production rates and recoverable reserves.

Condor said if definitive agreements are reached, it would implement a comprehensive field refurbishment, infill drilling, and an emissions-intensity reduction plan.

Produced gas would be processed under long-term agreements with Uzbekneftegaz using fixed tariffs and will be sold domestically under long-term contracts with the state gas marketing company.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 23, 2023 10:39 ET (14:39 GMT)

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