RCS - Challenger Energy - 2024 Year-End Letter to Shareholders

Challenger EnergyAnnouncement

07/01/2025 07:00

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RNS Number : 2798S  Challenger Energy Group PLC  07 January 2025

7 January 2025

 

Challenger Energy Group Plc

 

("Challenger Energy" or "the Company")

 

2024 Year-End Letter to Shareholders

 

The following letter to shareholders will also be published via the Company's
website.

 

Dear Shareholders

 

As 2025 begins, I write to thank you, our shareholders, for your support
throughout 2024, a milestone year for Challenger Energy, during which we made
significant progress in our two prime offshore exploration blocks in Uruguay.

 

AREA OFF-1

2024 saw the successful farmout of the AREA OFF-1 block to Chevron announced
on 6 March 2024. This transaction was a result of our high-quality technical
work, that established the licence area's multi-billion-barrel prospectivity.
Chevron's commitment to fully carry the Company's share of costs for a 3D
seismic campaign - and 50% of the costs for an initial exploration well should
Chevron move forward with it - positions AREA OFF-1 for significant progress
in the coming year, but with reduced financial risk.

 

Successful completion of the farmout also delivered a $12.5 million cash
payment to Challenger Energy and, at the same time, we retain a 40%
non-operating interest in the block, affording us enormous flexibility in how
we participate in this block's future.

 

AREA OFF-3

On 11 March 2024, we formalized our AREA OFF-3 license, marking the start of
an initial four-year exploration period. This highly prospective 13,252 km²
area, located in relatively shallow waters about 100 kilometers off the
Uruguayan coast, benefits from extensive 2D and 3D seismic coverage and, like
AREA OFF-1, has multi-billion-barrel resource potential from multiple play
types.

 

We have since commenced our technical work program for AREA OFF-3, which
centers around reprocessing 3D seismic data. This critical activity, set to
conclude in the first half of 2025, will refine the prospect inventory,
identify potential drill locations, and support a formal farmout process
targeted to commence in mid-2025. The anticipated costs of our work program,
projected at $1-1.5 million, reflect our commitment to a disciplined and
value-driven approach to early-stage exploration.

 

Trinidad & The Bahamas

We are currently reviewing our assets in Trinidad and The Bahamas, and
anticipate making a decision on their future in the first half of 2025.

 

Financial

The funds received on completion of the Chevron farmout means that we are
fully funded for the foreseeable future - both in terms of corporate overhead
and all planned work programs - with no debt, a healthy cash surplus, and no
unfunded commitments or obligations. Thus, as we exit 2024 and head into 2025,
I believe our Company is in the best financial position it has been in for
many years.

 

-----

 

2024 underscores Challenger Energy's ability to navigate complex projects,
partner with leading industry players, and leverage our assets to create value
for shareholders. As we look ahead to 2025, our focus remains steadfast:
advancing exploration activities in Uruguay, optimizing our portfolio, and
continuing to execute on our business strategy.

 

Once again, thank you for your support. I'm proud to reflect on what has been
a transformative year for Challenger Energy, and we are excited for 2025 and
beyond.

 

Sincerely,

Eytan Uliel - Chief Executive Officer

Challenger Energy Group Plc

 

 

This is a Reach (i.e. non-regulatory) announcement and the information
contained is not considered to be material or to have a significant impact on
management's expectations of the Company's performance.

 

For further information, please contact:

 

 Challenger Energy Group PLC                            Tel: +44 (0) 1624 647 882

 Eytan Uliel, Chief Executive Officer
 Zeus - Nomad and Joint Broker                          Tel: +44 (0) 20 3829 5000

 Simon Johnson / Antonio Bossi / Darshan Patel
 Stifel - Joint Broker                                  Tel: +44 (0) 20 7710 7600

 Ashton Clanfield / Callum Stewart / Simon Mensley
 Gneiss Energy Limited - Financial Adviser              Tel: +44 (0) 20 3983 9263

 Jon Fitzpatrick / Paul Weidman / Doug Rycroft
 CAMARCO - Financial PR                                   Tel: +44 (0) 20 3757 4980

 Billy Clegg / Georgia Edmonds / Tomisin Ibikunle
 Jonathan Paterson - Investor Relations                   Tel: +1 475 477 9401

 jonathan.paterson@harbor-access.com

 

Notes to Editors

 

Challenger Energy is an Atlantic-margin focused energy company, with
production, development, appraisal, and exploration assets in the region.
Challenger's primary assets are located in Uruguay, where the Company holds
two high impact offshore exploration licences, totaling 19,000km(2) (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 (https://www.cegplc.com/)

 

 

Forward-looking statements

Certain statements in this announcement are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of
those, variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors. Several factors could cause actual results to differ materially
from the results discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes, actions by
governmental authorities, the availability of capital markets, reliance on key
personnel, uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions, the Company cannot assure investors that actual
results will be consistent with such forward looking statements.

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