Canadian company Condor Energies Inc. announced the closing of a private placement of convertible debentures totalling $13.65mn in gross proceeds, including the partial exercise of an over-allotment option. The operation aims to support the acceleration of its gas development activities in Uzbekistan, particularly a 12-well drilling programme set to begin in 2026.
Condor plans two drilling rigs starting in 2026
The net proceeds from the financing will be used primarily to mobilise a second drilling rig, which will operate alongside the first throughout 2026. Condor also plans to install in-field compression units to increase production and improve cashflow from operations. A separate workover rig will be assigned to well re-entry operations as part of an ongoing optimisation programme.
Each debenture issued in the transaction has a principal value of $1,000, convertible into common shares of the company at a conversion price of $2.00 per share. The debentures mature on December 24, 2028, and bear an annual interest rate of 12%, payable in cash on a semi-annual basis. The debentures will be fully repaid in cash at maturity.
Led by Research Capital Corporation
The placement was led by Research Capital Corporation as sole bookrunner and co-lead agent, together with Canaccord Genuity Corp. as co-lead agent. The syndicate of agents also included Auctus Advisors LLP. In exchange, the agents received a cash commission of $492,700 and were granted 111,675 broker warrants entitling the holder to acquire one common share at a price of $2.00 until December 2028.
In addition, an advisory fee of $218,000 was paid along with 52,500 additional advisory warrants, issued under the same terms as the broker warrants. The issued securities are subject to a holding period expiring on April 25, 2026. The placement was conducted under private placement exemptions in Canadian provinces and other eligible jurisdictions, including the United States.
Objective: strengthening domestic gas production
Condor’s strategy aligns with Uzbekistan’s broader energy diversification goals, where the country seeks to maximise domestic gas output to meet rising local demand and honour regional export commitments. The company’s ongoing field presence is supported by intensive drilling activity and a technical approach focused on the exploitation of already identified reservoirs.
