29 October 2024
Challenger Energy Group
PLC
("Challenger Energy" or the "Company")
AREA OFF-1 Farm-Out
Completion
Challenger Energy (AIM: CEG),
the Atlantic margin focused energy company, is pleased to announce that the
farmout of a 60% interest in the AREA OFF-1 block, offshore
Uruguay, to Chevron Mexico Finance LLC,
Sucursal Uruguay ("Chevron") (a wholly-owned subsidiary of
Chevron Corporation (NYSE: CVX)), has today
been completed, with all required approvals
from the Uruguayan regulatory authorities having been received, and
the farmout taking legal effect.
As an immediate result, the Company
has received a cash payment of US$12.5 million while retaining a
40% non-operating interest in AREA OFF-1. Chevron has assumed
operatorship of the block and going forward will carry 100% of the
Company's share of the costs associated with a 3D seismic campaign
on AREA OFF-1 (up to a maximum of US$15 million net to Challenger
Energy). Thereafter, should Chevron decide to drill an initial
exploration well on the AREA-OFF 1 block, Chevron will also carry
50% of the Company's share of costs associated with that well (up
to a maximum of US$20 million net to Challenger Energy).
The Company is working closely with
ANCAP, the Uruguayan regulator, and Chevron to ensure a smooth
transition of operatorship, as well as participating in the
detailed planning for an upcoming 3D seismic campaign, targeted to
commence in the next available shoot window (H1 2025). Further
updates will be provided as planning and execution of the seismic
campaign progresses.
Eytan Uliel, Chief Executive Officer of Challenger
said:
"Completion of the AREA OFF-1 farmout is a
game-changer for Challenger Energy. We've achieved an outcome that
introduces Chevron, a recognised industry leader, as operator of
the block, who will now commence with executing a considerable
value-creating work program. The cash received and farmout terms
will ensure that our Company is fully funded for the foreseeable
future. And, just as important, this farmout validates our
capabilities in terms of securing early-access to promising
exploration blocks, and progressing them rapidly via high-quality
technical work. In the coming months we expect to communicate plans
for 3D seismic acquisition on AREA OFF-1, and at the same time we
will be fully engaged in a technical work program for our second
Uruguay licence, AREA OFF-3, applying the learnings from work on
AREA OFF-1 - our objective is to be in a position to kick off a
farm-out process for that block in mid-2025. The next year will
thus be an exciting and busy time for Challenger
Energy."
For further information,
please contact:
|
Challenger Energy Group PLC
Eytan Uliel, Chief Executive
Officer
|
Tel: +44 (0) 1624 647 882
|
|
Zeus - Nomad and Joint Broker
Simon Johnson / Antonio Bossi / Darshan Patel
|
Tel: +44 (0) 20 3829 5000
|
|
Stifel - Joint Broker
Ashton Clanfield / Callum Stewart /
Simon Mensley
|
Tel: +44 (0) 20 7710 7600
|
|
Gneiss Energy Limited - Financial Adviser
Jon Fitzpatrick / Paul Weidman /
Doug Rycroft
|
Tel: +44 (0) 20 3983 9263
|
|
CAMARCO - Financial PR
Billy Clegg / Georgia Edmonds /
Tomisin Ibikunle
|
Tel: +44 (0) 20 3757
4980
|
|
Jonathan Paterson - Investor Relations
jonathan.paterson@harbor-access.com
|
Tel: +1 475 477
9401
|
Notes to
Editors
Challenger Energy is an
Atlantic-margin focused energy company, with production,
development, appraisal, and exploration assets in the region.
Challenger Energy's primary assets are located in Uruguay, where
the Company holds two high impact offshore exploration licences,
totalling 19,000km2 (gross) and is partnered with
Chevron on the AREA-OFF 1 block. Challenger Energy is quoted on the
AIM market of the London Stock Exchange.
https://www.cegplc.com
ENDS
