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TICKERS: CDR

Energy Co. Has Buy Rating After Successful Artificial Lift Program
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Condor Energies Inc. (CDR:TSX.V) recently announced significant productivity improvements through its artificial lift program in Uzbekistan, according to a Research Capital note.

Research Capital Corp. analyst Bill Newman, in a research report published on October 16, 2024, maintained a Speculative Buy rating on Condor Energies Inc. (CDR:TSX.V) with a price target of CA$5.35. The report follows Condor's announcement of significant productivity improvements through its artificial lift program in Uzbekistan.

Newman highlighted the success of the program, stating, "The first three wells have achieved a 100% to 300% increase in gas flow rates compared to pre-workover levels, contributing an additional 330 boe/d of incremental production." He added, "Encouraged by these initial successes, Condor has contracted a second workover rig, with operations expected to commence in early November 2024."

The analyst viewed these developments positively, noting, "Condor is achieving strong operational performance through its artificial lift program in Uzbekistan, resulting in meaningful production gains. The adoption of advanced technologies and the scaling of its workover program provide a clear path for sustained growth."

Regarding Condor's operational update in Uzbekistan, Newman stated, "The ongoing low-risk field development program in Uzbekistan has successfully stabilized production by eliminating a 20% average decline rate, positioning the Company for substantial production growth in Q4/24."

The report also highlighted Condor's strategic initiatives, including the installation of in-line water separation units and the expansion of its workover program. Newman commented, "With a substantial inventory of wells for reactivation and optimization, Condor is well-positioned to continue expanding production."

Newman's valuation methodology for Condor Energies is based on a combination of cash flow multiple and risked Net Present Value (NPV). He explained, "We maintain our SPECULATIVE BUY recommendation and CA$5.35 target price, reflecting a 4.0x multiple of our 2025 debt-adjusted cash flow forecast from Uzbekistan and a 50% risked NPV value for the Alga LNG Project."

The analyst added, "Our target price does not yet factor in any potential value from Condor's second LNG project (Kuryk), its lithium projects in Kazakhstan, or the Poyraz natural gas field in Turkey."

Newman also outlined several risk factors, including liquidity risk, LNG facility construction risks, exchange rate risk, political risk, commodity risk, and credit risk.

In conclusion, Research Capital Corp.'s maintenance of a Speculative Buy rating and CA$5.35 price target reflects a positive outlook on Condor Energies' operational improvements and growth potential in Uzbekistan. The share price at the time of the report of CA$2.00 represents a potential return of approximately 167.5% to the analyst's target price, highlighting the significant upside potential if the company's operational and strategic plans continue to succeed.


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  1. 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. 

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Disclosures for Research Capital Corp., Condor Energies Inc., October 16, 2024

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. Research Capital Corporation publishes research and investment recommendations for the use of its clients. 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. 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.

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