REG - Challenger Energy - Interim Results
03/09/2025 07:00
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RNS Number : 6860X Challenger Energy Group PLC 03 September 2025
3 September 2025
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
Interim Results for the six months ended 30 June 2025
Challenger Energy (AIM: CEG), the Caribbean and Atlantic-margin focused oil
and gas company, with oil production, appraisal, development and exploration
assets across the region, announces its Interim Results for the six months
period to 30 June 2025.
The Interim Results and Chief Executive Officer's commentary are set out in
full below and are also available on the Company's
website https://www.cegplc.com/ (https://www.cegplc.com/) .
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
James Joyce/James Bavister
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
CAMARCO - Financial PR Tel: +44 (0) 20 3757 4980
Billy Clegg / Georgia Edmonds / Emily Hall
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 a current
high-impact position in Uruguay, where the Company holds two offshore
exploration licences, totalling 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 and the OTCQB in the United States.
https://www.cegplc.com (https://www.cegplc.com/)
CHIEF EXECUTIVE OFFICER'S REPORT
Dear fellow Shareholders,
I am pleased to report to you on your Company's activities during the first
half of 2025.
Highlights during this period were the handover of operatorship of our AREA
OFF-1 block in Uruguay to Chevron alongside preparatory work for 3D seismic
acquisition on that block, substantially completing our initial technical work
program for the AREA OFF-3 block ahead of commencing a farmout process, entry
into an agreement for the sale of our entire business in Trinidad and Tobago,
listing on the OTCQB in the USA, and continued strong financial discipline.
Further details are provided below.
Uruguay
We made steady progress with both of our core assets in Uruguay - AREA OFF-1
and AREA OFF-3 - during the period under review.
For AREA OFF-1, the farm-out of a 60% working interest in that block to
Chevron was completed in November 2024. As a result, the first half of 2025
saw handover of operatorship to Chevron, alongside various work streams
necessary to prepare for 3D seismic acquisition. It is gratifying to report
that the working relationship with Chevron through the period has been
excellent, very much reaffirming our choice of Chevron as the right partner
for us on this block. As at the date of this report, the expectation is that
3D seismic acquisition will commence in late Q4 2025, subject to finalisation
of permitting by the Uruguayan Ministry of Environment, a process which is
well advanced. The cost of this 3D seismic campaign will be fully carried by
Chevron under the terms of the farmout agreement (up to a total program cost
of $37.5 million, an amount we expect will be more than adequate to cover the
cost of the desired acquisition to be completed). This activity, and
subsequent well drilling, will be fundamental to realising the considerable
value potential we see in this asset.
For AREA OFF-3, we made rapid progress on our planned technical work program,
which was substantially completed in August 2025. The primary geotechnical
work focused on the licencing, reprocessing and interpretation of a 1,250
km(2) 3D seismic data set; in conjunction, other subsurface studies addressed
the geochemistry and further de-risked AREA OFF-3 exploration potential.
Completion of our AREA OFF-3 technical work program has put us in a position
to commence a formal farmout process for that block, which we began effective
1 September 2025. Our strategy for AREA OFF-3 is unchanged, which is to follow
the same formula that produced a successful outcome for AREA OFF-1: that is,
to undertake high quality technical work to establish the prospectivity of the
block, and then, with the benefit of that technical work, seek to bring in a
partner via a farmout process. We expect that the work we have done in terms
of mapping of both 3D and 2D seismic along with the ancillary geophysical
products will form a key part of the basis of any potential drilling decision
on the block in the future.
Trinidad and Tobago
In February 2025, we entered into an agreement for the sale of all of our
business, assets and operations in Trinidad and Tobago. During the first half
of 2025 we continued to operate the business, pending receipt of necessary
regulatory approvals for completion of the sale. Production was constant,
costs were contained, and HSE&S performance continued to be exemplary.
Subsequent to period end, required regulatory approvals were obtained and the
sale transaction completed on 29 August 2025. The transaction represented a
complete exit from Trinidad and Tobago, under which the purchaser acquired the
entirety of the Trinidad and Tobago business, inclusive of all associated
income, assets, liabilities, exposures and administrative cost. Consequently,
we have no further operations in, or exposure to, Trinidad and Tobago. This
means that going forward focus can be directed almost entirely to our assets
in Uruguay, where we see opportunity for significant near-term value creation.
Corporate
In April 2025, Challenger Energy ordinary shares were approved to trade on the
OTCQB Venture Market ("OTCQB") in the United States, under the ticker symbol
"BHSPF". The benefit of this listing is enhanced access to trading for U.S.
based investors, and potentially greater liquidity due to a broader geographic
pool of potential investors. Thus far, we have seen growing interest in the
Company from U.S. investors, and steadily increasing trading volumes through
the OTCQB. It is also worth reiterating that trading on the OTCQB does not
affect trading of the Company's ordinary shares on AIM, which continues as
before under the ticker symbol "CEG".
Financial Review, Cash Position and Funding
The unaudited interim financial statements for the half year ended 30 June
2025 present details on the financial performance of the Company for the
period. By way of added commentary:
(a) The nature of the Company's primary business - high impact hydrocarbon
exploration activities - means that a key financial indicator we focus on, and
which is not always readily discernible from the financial statements, is net
cash spend (or "overhead run-rate" or "burn" as it is sometimes also referred
to). In this regard, the Company's net cash spend in the first half of 2025
was in the order of $225,000 per month. This is marginally more than our
stated objective of maintaining "burn" at around $200,000 per month (i.e.,
under $2.5m per annum), but reflects the fact that in the period we incurred
several costs of a "one-off" nature, which are not expected to recur in the
future.
(b) At balance sheet date the Company's cash position was very strong. We
report approximately $6.6m of cash holdings - which does not include
approximately $0.7m of cash on restricted deposit in support of work program
guarantees for various licences, and approximately $1.75m of cash receipts
that have been received and/or will flow from the sale of the Trinidad
business. In an aggregate sense, therefore, our "true" cash position as at 30
June 2025 is approximately $9.0m. Against this, as noted, we have
substantially completed (and paid for) our AREA OFF-3 work, we will be carried
through the 3D seismic campaign on AREA OFF-1 by Chevron, and our corporate
overhead is low. In totality, this means that we have sufficient funds to meet
all planned activities for the remainder of 2025, 2026, and well into 2027,
without the need for any additional capital.
(c) The entry into an agreement for the sale of the Company's business in
Trinidad and Tobago meant that all income, assets and liabilities associated
with that business were reclassified for accounting purposes as "assets held
for sale". As a result, the financial statements for the period show no
revenue, given that all previous revenues were attributable to the now
reclassified Trinidad business, and all assets and liabilities associated with
that business have been reported separately. Given that the sale transaction
has now completed, these will be removed entirely from the financial
statements going forward.
Strategic Direction
With the exit from Trinidad and Tobago completed, we have now addressed almost
entirely the "clean-up" of various legacy items relevant to our Company - a
process that has been ongoing for several years. In the process, we have
dramatically simplified our business, thereby enabling us to focus almost
entirely on Uruguay. At the same time, we have emerged from a period of
rebuilding with a lean overhead, a great team, and a solid cash position that
should carry us forward well into the foreseeable future.
Clear value-creation milestones lie on the horizon ahead of us, the most
significant of which are (i) Chevron taking the AREA OFF-1 project forward,
first with 3D seismic acquisition, leading to a decision on exploration well
drilling, and (ii) the AREA OFF-3 farmout process, which we hope will pave the
way for value adding technical work and exploration well drilling on that
block too.
Thus, both as CEO and a major shareholder in the Company, I am incredibly
excited about what our Company might achieve in the coming 12-24 months. The
hard work of the past few years has put solid foundations in place, and the
task now is to capitalise on the opportunity we've created so as to
realise the value potential embedded in our assets. In our most recent Annual
Report, I said I believed that the outlook for our Company over the coming
period is as strong as it has ever been, and I continue to stand by this
statement. I look forward to reporting back to you as to our progress in the
coming year.
Eytan Uliel
Chief Executive Officer
3 September 2025
Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended 30 June 2025 (Unaudited) Six months Year ended
ended 30 June 2024 (Unaudited) 31 December 2024
(Audited)
Note $000's $000's $000's
Net petroleum revenue - 1,821 3,454
Cost of sales - (1,882) (3,908)
Gross profit/(loss) - (61) (454)
Administrative expenses (2,082) (2,245) (6,391)
Impairment charges - - (4,723)
Gain on disposal of intangible exploration and evaluation assets - - 9,285
Operating foreign exchange gains/ (losses) 839 316 340
Operating loss (1,243) (1,990) (1,943)
Other income 2 - 67 121
Finance income/(costs), net 2 110 (169) (306)
Other financial items (94) - -
Loss before taxation (1,227) (2,092) (2,128)
Income tax credit/(expense) - 10 25
Loss from continuing operations (1,227) (2,082) (2,103)
Discontinued operations
Gain after tax for the year from discontinued operations (4,047) - 1,053
Loss for the year attributable to equity holders of the parent company (5,274) (2,082) (1,050)
Other comprehensive income/(expense)
Items to be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations 3,100 (230) (269)
Other comprehensive income/(expense) for the period net of taxation 3,100 (230) (260)
Total comprehensive income/(expense) for the period attributable to equity (2,174) (2,312) (1,319)
holders of the parent company
Earnings/(loss) per share (cents)
Basic (loss) / earnings per share
-From continuing operations (0.50) (0.99) (0.98)
-From discontinued operations (1.64) - 0.49
Total (2.14) (0.99) (0.49)
Diluted earnings (loss) per share
-From continuing operations - - -
-From discontinued operations - - -
Total - - -
The accompanying accounting policies and notes form an integral part of these
financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS ENDED 30 JUNE 2025
At At At
30 June 2025 30 June 2024 31 December 2024
(Unaudited) (Unaudited) (Audited)
Note $000's $000's $000's
Assets
Non-current assets
Intangible exploration and evaluation assets 4 94,900 95,885 94,766
Goodwill 4 - - -
Tangible assets 5 42 9,119 3,858
Escrow and abandonment funds - 1,634 1,656
Deferred tax asset - 4,112 1,333
Total non-current assets 94,942 110,750 101,613
Current assets
Trade and other receivables 685 3,289 2,709
Inventories - 261 148
Other short term financial assets 178 - -
Restricted cash 708 808 1,299
Cash and cash equivalents 6,639 1,836 8,434
Total current assets 8,210 6,194 12,590
Assets held for sale 6 8,996 - -
Total assets 112,148 116,944 114,203
Liabilities
Current liabilities
Trade and other payables (2,178) (9,076) (7,644)
Borrowings - (1,897) -
Total current liabilities (2,178) (10,973) (7,644)
Non-current liabilities
Provisions (2,624) (5,659) (4,805)
Deferred tax liability - (4,172) (1,378)
Total non-current liabilities (2,624) (9,831) (6,183)
Liabilities directly associated with the assets held for sale (8,855) - -
Total liabilities (13,657) (20,804) (13,827)
Net assets 98,491 96,140 100,376
Shareholders' equity
Called-up share capital 7 3,264 2,753 3,206
Share premium reserve 7 183,466 180,507 183,235
Share based payments reserve 8 5,698 5,636 5,698
Retained deficit (115,996) (111,754) (110,722)
Foreign exchange reserve (1,225) (4,286) (4,325)
Other reserves 23,284 23,284 23,284
Total equity attributable to equity holders of the parent company 98,491 96,140 100,376
The accompanying accounting policies and notes form an integral part of these
financial statements.
These Interim Financial Statements were approved and authorised for issue by
the Board of Directors on 3 September 2025 and signed on its behalf by:
Eytan Uliel Iain McKendrick
Director Director
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months Six months Year ended
ended 30 June 2025 ended 30 June 2024 (Unaudited) 31 December 2023
(Unaudited) (Audited)
$000's $000's $000's
Cash flows from operating activities
Loss before taxation (1,227) (2,092) (2,128)
Decrease/(increase) in trade and other receivables 2,773 (120) 172
(Decrease)/increase in trade and other payables (2,381) 904 107
Decrease in inventories 15 19 111
Impairment of tangible and intangible assets - - 4,723
Depreciation of property, plant and equipment 1 721 1,377
Fair value loss on financial assets recognised in profit or loss 94 - -
Gain on disposal of Intangible exploration and evaluation assets - - (9,285)
(Gain)/loss on disposal of property, plant and equipment - (12) (12)
Amortisation - 13 25
Share settled payments - - 149
Other income - (67) (121)
Finance income/ (costs), net (110) 169 306
Share based payments - - 62
Foreign exchange (gain)/loss on operating activities (839) (316) (340)
Net cash outflow from operating activities (1,674) (781) (4,854)
Cash flows from investing activities
Purchase of property, plant and equipment (57) (105) (260)
Proceeds from sale of property, plant and equipment - 13 55
Payments for exploration and evaluation assets (508) (172) (1,732)
(Increase)/Decrease in restricted cash 271 18 (473)
Proceeds on disposal of Intangible exploration and evaluation assets - - 12,730
Proceeds from sale of subsidiaries, net of - - (1)
cash sold
Other income received - 67 195
Interest received 113 - 53
Net cash outflow from investing activities (181) (179) 10,567
Cash flows from financing activities
Issue of ordinary share capital 289 - -
Finance costs (5) (6) (2)
Proceeds of borrowings - 1,800 1,800
Net cash inflow from financing activities 284 1,794 1,798
Net increase in cash and cash equivalents (1,571) 834 7,511
Effects of exchange rate changes on cash and cash equivalents 44 (3) (82)
Cash and cash equivalents at beginning of period 8,434 1,005 1,005
Cash and cash equivalents included in disposal group (268) - -
Cash and cash equivalents at end of period 6,639 1,836 8,434
The accompanying accounting policies and notes form an integral part of these
financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Called up share capital Share premium reserve Share based payments reserve Retained deficit Foreign exchange reserve Other reserves Total Equity
$000's $000's $000's $000's $000's $ 000's $000's
Group
At 1 January 2025 3,206 183,235 5,698 (110,722) (4,325) 23,284 100,376
Loss for the period - - - (5,274) - - (5,274)
Currency translation differences - - - - 3,100 - 3,100
Total comprehensive expense - - - (5,274) 3,100 - (2,174)
Share capital issued 58 231 - - - - 289
Total contributions by and distributions to owners of the Company 58 231 - - - - 289
Balance at 30 June 2025 3,264 183,466 5,698 (115,996) (1,225) 23,284 98,491
Called up share capital Share premium reserve Share based payments reserve Retained deficit Foreign exchange reserve Other reserves Total Equity
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January 2024 2,753 180,507 5,636 (109,672) (4,056) 23,284 98,452
Loss for the period - - - (2,082) - - (2,082)
Currency translation differences - - - - (230) - (230)
Total comprehensive expense - - - (2,082) (230) - (2,312)
Total contributions by and distributions to owners of the Company - - - - - -
-
Balance at 30 June 2024 2,753 180,507 5,636 (111,754) (4,286) 23,284 96,140
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Called up share capital Share premium reserve Share based payments reserve Retained deficit Foreign exchange reserve Other reserves Total Equity
$000's $000's $000's $000's $000's $000's $000's
Group
At 1 January 2023 2,540 180,240 5,635 (96,999) (5,743) 23,284 108,957
Loss for the year - - - (13,421) - - (13,421)
Currency translation differences - - - 748 1,687 - 2,435
Total comprehensive income/ (expense) - - - (12,673) 1,687 - (10,986)
Share capital issued 213 267 - - - - 480
Share based payments - - 1 - - - 1
Total contributions by and distributions to owners of the Company 213 267 1 - - - 481
At 31 December 2023 2,753 180,507 5,636 (109,672) (4,056) 23,284 98,452
Loss for the year - - - (1,050) - - (1,050)
Currency translation differences - - - - (269) - (269)
Total comprehensive income /(expense) - - - (1,050) (269) - (1,319)
Share capital issued 453 2,728 - - - - 3,181
Share based payments - - 62 - - - 62
Total contributions by and distributions to owners of the Company 453 2,728 62 - - - 3,243
At 31 December 2024 3,206 183,235 5,698 (110,722) (4,325) 23,284 100,376
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2025
1 Basis of preparation
The financial statements have been prepared on the historical cost basis,
except for the measurement of certain assets and financial instruments at fair
value as described in the accounting policies below.
The financial statements have been prepared on a going concern basis, refer to
the Going Concern section below for more details.
The financial statements are presented in United States dollars ($) and all
values are rounded to the nearest thousand dollars ($'000) unless otherwise
stated.
Basis of consolidation
The financial statements incorporate the results of the Company and its
subsidiaries (the "Group") using the acquisition method. Control is achieved
where the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity.
Inter-company transactions and balances between Group companies are eliminated
in full.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with those used by
the Group.
Going Concern
These financial statements have been prepared on a going concern basis, which
assumes that the Group will continue in operation for the foreseeable future.
On 6 March 2024, the Group entered into a farmout agreement with Chevron, a
leading global energy company, in relation to the Group's AREA OFF-1 licence
offshore Uruguay, pursuant to which the Group received a $12.5 million cash
payment at completion (on 29 October 2024) along with Chevron agreeing to
carry the Group's share of certain future work programme costs. In addition,
the Group was entitled to an adjustment payment of approximately $0.2 million
related to AREA OFF-1 costs incurred in the period between signing of the
farmout agreement and completion of the transaction (received on 29 October
2024), as well as the release of $0.3 million of restricted cash held at
balance sheet date to secure performance of AREA OFF-1 work obligation
commitments (which release was finalised on 12 May 2025).
At 30 June 2025, the Group had approximately $6.9 million in unrestricted cash
and approximately $700,000 in restricted cash that is held in Company accounts
but which is pledged in support of performance of work programme obligations,
and thus access to that cash is restricted - as work programme obligations are
met that cash will in due course become unrestricted, and thus available to
the Company for general use purposes.
Whilst the Group incurred an operating loss of $1.2 million for the period
ended 30 June 2025, as of 30 June 2025 the Group's current assets exceed
current liabilities by approximately $6.0 million. The assets/liabilities held
for sale represent the current balance sheet position of the Trinidad and
Tobago business, which the Group expects to exit completely following the
completion of the announced sale of all of the Group's business and
undertakings in Trinidad & Tobago. In addition to this, completion of the
sale of the Group's business in Trinidad and Tobago is expected to result in
net receipts by the Group of approximately $1.75m, in instalments through
2025, 2026 and 2027, with approximately $0.75m of this total to be received in
cash in 2025, which would increase the Group's overall cash position.
Given the foregoing, the Directors of the Company have thus prepared these
financial statements on a going concern basis: based on the Group's current
cash holdings and current cash flow forecasts, the Group expects to have
adequate financial resources to support its operations for the next 12 months
(and well into the foreseeable future beyond that). In addition, the Directors
note that the Company is a publicly listed company on a recognised stock
exchange, thus affording the Company the ability to raise equity capital, debt
and/or hybrid financing alternatives as and when the need arises. The Company
has a robust track record in this regard, having raised in excess of US$100
million in equity and alternative financing in the past.
2 Other income and Finance income
Other income and Finance income predominantly comprise discounts secured from
the Group's historical creditors and a secured financier, as part of
negotiated settlements agreed pursuant to the Group's restructuring and
recapitalisation exercise.
3 Turnover and segmental analysis
Management has determined the operating segments based on the reports reviewed
by the Board of Directors that are used to make strategic decisions. The Board
has determined there is a single operating segment: oil and gas exploration,
development and production. However, there are four geographical segments:
Uruguay (operating), Trinidad & Tobago, including a single operating
segment and a separate disposal group for the period ended 30 June 2025 (refer
to note 6), The Bahamas (operating), and The Isle of Man, UK, Spain and Cyprus
(all non-operating).
The Uruguay segment includes the exploration licences and appraisal works
which have commenced in 2022 and are ongoing. The segment including Trinidad
& Tobago has been reported as the Group's direct oil and gas producing and
revenue generating operating segment. The Bahamas segment includes the
Bahamian exploration licences on which drilling activities were conducted in
2020 and 2021. The non-operating segment including the Isle of Man (the
Group's parent) and UK entities which provides management services to the
Group and entities in Spain and Cyprus, all of which are non-operating in that
they either hold investments, or are dormant. Their results are consolidated
and reported on together as a single segment. As part of a group wide
rationalisation plan there is an ongoing process to wind up a number of
companies in the Group including those in Spain and Cyprus.
Six months to 30 June 2025 Total
Uruguay Trinidad Disposal Group Bahamas Non-Operating
Operating Operating Entities (*)
$'000 $'000 $'000 $'000 $'000
Operating profit/(loss) by geographical area
Net petroleum revenue (**) - - - - -
Operating profit/(loss) (162) - (88) (993) (1,243)
Other income - - - - -
Finance (costs) / income, net (4) - - 114 110
Other financial items - - - (94) (94)
Profit/(loss) before taxation (166) - (88) (973) (1,227)
Other information
Loss after tax for the year from discontinued operations - (4,047) - - (4,047)
Administration expenses (162) - (88) (1,832) (2,082)
Depreciation, amortisation and impairment - - - (1) (1)
Capital additions (508) - - - (508)
Segment assets
Tangible and intangible assets 937 - 93,963 42 94,942
Trade and other receivables 7 - 500 178 685
Other short term financial assets - - - 178 178
Restricted cash - - - 708 708
Cash 10 - 4 6,625 6,639
Assets held for sale - 8,996 - - 8,996
Consolidated total assets 954 8,996 94,467 7,731 112,148
Segment liabilities
Trade and other payables (1) - (1,050) (1,127) (2,178)
Provisions - - - (2,624) (2,624)
Liabilities directly associated with the assets held for sale - (8,855) - - (8,855)
Consolidated total liabilities (1) (8,855) (1,050) (3,751) (13,657)
Six months to 30 June 2024 Trinidad Operating Total
Uruguay Bahamas Non-Operating
Operating Operating Entities (*)
$'000 $'000 $'000 $'000 $'000
Operating profit/(loss) by geographical area
Net petroleum revenue (**) - 1,821 - - 1,821
Operating profit/(loss) (38) (740) (46) (1,166) (1,990)
Other income - 20 - 47 67
Finance (costs) / income, net - (71) - (98) (169)
Profit/(loss) before taxation (38) (791) (46) (1,217) (2,092)
Other information
Administration expenses (38) (873) (46) (1,288) (2,245)
Depreciation, amortisation and impairment - (723) - (11) (734)
Capital additions (172) (105) - - (277)
Segment assets
Tangible and intangible assets 1,534 9,185 93,964 321 105,004
Deferred tax asset - 4,112 - - 4,112
Escrow and abandonment funds - 1,634 - - 1,634
Trade and other receivables 6 2,619 500 164 3,289
Inventories - 261 - - 261
Restricted cash - 301 - 507 808
Cash - 310 - 1,526 1,836
Assets held for sale - - - - -
Consolidated total assets 1,540 18,422 94,464 2,518 116,944
Segment liabilities
Trade and other payables (1) (6,243) (1,051) (1,781) (9,076)
Deferred tax liability - (4,172) - - (4,172)
Borrowings - - - (1,897) (1,897)
Provisions - (3,259) - (2,400) (5,659)
Liabilities directly associated with the assets held for sale
- - - - -
Consolidated total liabilities (1) (13,674) (1,051) (6,078) (20,804)
(*) Intercompany balances and transactions between Group entities have been
eliminated.
(**) Sales revenues were derived from a single customer within each of these
operating countries.
4 Intangible assets - Group
Goodwill Exploration & evaluation assets
$ 000's $ 000's
Cost
As at 1 January 2024 7,045 101,127
Additions - 2,510
Disposal of Intangible exploration and evaluation assets - (3,445)
Foreign exchange difference on translation - (16)
As at 31 December 2024 7,045 100,176
Additions - 508
Assets held for sale - (5,395)
Foreign exchange difference on translation - 26
As at 30 June 2025 7,045 95,315
Accumulated amortisation and impairment
As at 1 January 2024 7,045 5,401
Amortisation - 25
Foreign exchange difference on translation - (16)
As at 31 December 2024 7,045 5,410
Amortisation - 2
Assets held for sale - (5,022)
Foreign exchange difference on translation - 25
As at 30 June 2025 7,045 415
Net book value
As at 30 June 2025 - 94,900
As at 31 December 2024 - 94,766
As at 31 December 2023 - 95,726
5 Tangible assets
Oil and gas assets Property, plant and equipment (*) Decommissioning costs Total
$ 000's $ 000's $ 000's $ 000's
Cost or Valuation
As at 1 January 2024 36,839 7,094 2,973 46,906
Additions 80 179 9 268
Disposals (109) - - (109)
Discontinued operations (8,249) - (702) (8,951)
Foreign exchange difference on translation (46) (137) (5) (188)
As at 31 December 2024 28,515 7,136 2,275 37,926
Additions 19 - - 19
Assets held for sale (21,089) (4,832) (2,286) (28,207)
Foreign exchange difference on translation 104 280 11 395
As at 30 June 2025 7,549 2,584 - 10,133
Accumulated depreciation and Impairment
At 1 January 2024 29,208 6,013 1,951 37,172
Depreciation 1,010 231 136 1,377
Impairment 4,723 - - 4,723
Disposals (66) - - (66)
Discontinued operations (8,249) - (702) (8,951)
Foreign exchange difference on translation (52) (132) (3) (187)
At 31 December 2024 26,574 6,112 1,382 34,068
Depreciation 179 37 22 238
Assets held for sale (19,297) (3,877) (1,411) (24,585)
Foreign exchange difference on translation 93 270 7 370
As at 30 June 2025 7,549 2,542 0 10,091
Net book value
As at 30 June 2025 - 42 - 42
As at 31 December 2024 1,941 1,024 893 3,858
As at 31 December 2023 7,631 1,081 1,022 9,734
(*) Property, plant and equipment includes leasehold improvements.
6 Discontinued operations
2025 disposal - divestment of Columbus Energy (St Lucia) Limited and
subsidiaries (CEG Trinidad)
On 18 February 2025, the Group announced that it has entered a transaction for
the sale of its St Lucia domiciled subsidiary company, Columbus Energy (St.
Lucia) Limited, which in turn holds various subsidiary entities collectively
representing all of the Group's business, assets and operations in Trinidad
and Tobago. Completion of the sale was expressed to be subject to prior
approval of (i) the Group's shareholders, and (ii) appropriate regulatory
approval in Trinidad and Tobago, with both approvals to be obtained prior to
30 April 2025 (or such later date as the parties may agree). On 27 March 2025,
the Group received shareholder approval for the transaction to proceed
following the passing of a resolution at an extraordinary general meeting. On
6 May 2025, the Group and the buyer agreed to a 60-day extension for
completion of the sale, to 30 June 2025, to allow for additional time to
secure the requisite regulatory approvals, given administrative uncertainty
due to the snap-election called in Trinidad and Tobago in March 2025. An
additional 60-day extension, to 31 August 2025, was agreed to on 1 April 2025.
Final regulatory approvals were obtained and the transaction was completed,
post period end, on 29 August 2025.
The total transaction value agreed was $6 million (which could increase to up
to $8 million under certain future production criteria) whereby the Group will
receive cash and liquid securities of $1.75 million made up of an initial
deposit of $0.25 million in Predator Oil and Gas Holdings Plc ("POGH") shares;
$0.5 million in cash on completion; $0.5 million in cash on 30 August 2026;
$0.25 million in cash on 31 December 2026; and $0.25 million in cash on 31
December 2027. Additionally, effective completion the buyer has assumed all
liabilities, provisions and potential exposures of the business, assets and
operations in Trinidad and Tobago, which for the purposes of the transaction
were agreed to be $4.25 million. At year-end 2027, an additional contingent
payment of potentially up to $2 million is also available, under certain
conditions linked to production exceeding 750 bopd.
Effective 18 February 2025, as the asset sale was deemed active and highly
probable, these entities were designated as a separate disposal group and
reclassified as assets held for sale from that date onward. The 30 June 2025
results for Columbus Energy (St. Lucia) Limited and subsidiary entities are
presented below:
Income statement $ 000's
Revenue 1,653
Cost of sales (1,440)
Administration expenses (43)
Operating foreign exchange gains/(losses) (4,153)
Finance costs (67)
Other income -
Income tax credit 3
(4,047)
The major classes of assets and liabilities of Columbus Energy (St. Lucia)
Limited and subsidiary entities at 31 December 2024 are presented below:
Assets $ 000's
Cash and cash equivalents 268
Restricted cash 320
Trade and other receivables 1,360
Inventories 133
Tangible and intangible assets 3,923
Abandonment fund 1,699
Deferred tax asset 1,293
Total assets 8,996
Liabilities
Trade and other payables (4,968)
Provisions (2,552)
Deferred tax liability (1,335)
Total liabilities (8,855)
Total net assets 141
2024 disposal - Exit from the Bonasse licence (Trinidad South-West Peninsula):
The Bonasse licence is a private petroleum lease located in the south-west
peninsula of Trinidad. In 2022, the Saffron-2 well was drilled in the licence
area, which was not commercial. Subsequently the field was progressively shut
in, such that there has been minimal and (since August 2023) no production
from the licence area. The Company has undertaken various reviews of the
potential of the licence area, concluding that absent substantial investment
in multiple high-risk wells, no evident commercial forward pathway is evident.
At the same time, the licence continued to represent considerable future
exposure for the Group in terms of lease payments, a legal dispute with the
surface landowner as to the quantum of lease payments given the non-commercial
nature of the field, well abandonment obligations, various payables and
provisions, and long-term environmental exposures. Accordingly, on 27 August
2024 the Company entered into an arrangement to secure an orderly and complete
exit from the Bonasse licence. This comprised a settlement agreement with the
surface landowner and in parallel the transfer of 100% of the share capital in
CEG Bonasse Trinidad Limited, a Trinidadian company that holds the Bonasse
licence, to a third-party acceptable to the surface landowner. The transfer
agreement included that third-party assuming and indemnifying the Group
against all liabilities and exposures associated with the Bonasse licence, and
making payment to the surface landholder of an agreed settlement amount, such
that the Company achieved a full exit from the Bonasse licence with no
associated cost or cash impact, and no future exposure.
7 Share capital - Group & Company
Called up, allotted, issued and fully paid ordinary shares of 1p each* Number of shares Nominal value Share premium
$ 000's $ 000's
At 1 January 2024* 209,881,322 2,753 180,507
Shares issued at average price of 7p per share 35,000,000 453 2,728
At 31 December 2024 244,881,322 3,206 183,235
Shares issued at average price of 5p per share 840,000 10 42
Shares issued at average price of 5p per share 3,591,338 48 189
At 30 June 2025 249,312,660 3,264 183,466
Number of shares Nominal value Share premium
$ 000's $ 000's
As 31 December 2023 209,881,322 2,753 180,507
As 31 December 2024 244,881,322 3,206 183,235
At 30 June 2025 249,312,660 3,264 183,466
The major classes of assets and liabilities of Columbus Energy (St. Lucia)
Limited and subsidiary entities at 31 December 2024 are presented below:
Assets $ 000's
Cash and cash equivalents 268
Restricted cash 320
Trade and other receivables 1,360
Inventories 133
Tangible and intangible assets 3,923
Abandonment fund 1,699
Deferred tax asset 1,293
Total assets 8,996
Liabilities
Trade and other payables (4,968)
Provisions (2,552)
Deferred tax liability (1,335)
Total liabilities (8,855)
Total net assets 141
2024 disposal - Exit from the Bonasse licence (Trinidad South-West Peninsula):
The Bonasse licence is a private petroleum lease located in the south-west
peninsula of Trinidad. In 2022, the Saffron-2 well was drilled in the licence
area, which was not commercial. Subsequently the field was progressively shut
in, such that there has been minimal and (since August 2023) no production
from the licence area. The Company has undertaken various reviews of the
potential of the licence area, concluding that absent substantial investment
in multiple high-risk wells, no evident commercial forward pathway is evident.
At the same time, the licence continued to represent considerable future
exposure for the Group in terms of lease payments, a legal dispute with the
surface landowner as to the quantum of lease payments given the non-commercial
nature of the field, well abandonment obligations, various payables and
provisions, and long-term environmental exposures. Accordingly, on 27 August
2024 the Company entered into an arrangement to secure an orderly and complete
exit from the Bonasse licence. This comprised a settlement agreement with the
surface landowner and in parallel the transfer of 100% of the share capital in
CEG Bonasse Trinidad Limited, a Trinidadian company that holds the Bonasse
licence, to a third-party acceptable to the surface landowner. The transfer
agreement included that third-party assuming and indemnifying the Group
against all liabilities and exposures associated with the Bonasse licence, and
making payment to the surface landholder of an agreed settlement amount, such
that the Company achieved a full exit from the Bonasse licence with no
associated cost or cash impact, and no future exposure.
7
Share capital - Group & Company
Called up, allotted, issued and fully paid ordinary shares of 1p each*
Number of shares
Nominal value
Share premium
$ 000's
$ 000's
At 1 January 2024*
209,881,322
2,753
180,507
Shares issued at average price of 7p per share
35,000,000
453
2,728
At 31 December 2024
244,881,322
3,206
183,235
Shares issued at average price of 5p per share
840,000
10
42
Shares issued at average price of 5p per share
3,591,338
48
189
At 30 June 2025
249,312,660
3,264
183,466
Number of shares
Nominal value
Share premium
$ 000's
$ 000's
As 31 December 2023
209,881,322
2,753
180,507
As 31 December 2024
244,881,322
3,206
183,235
At 30 June 2025
249,312,660
3,264
183,466
*Adjusted for share consolidation which took place on 6 August 2024, whereby
the Company reorganised its share capital and reduced the number of ordinary
shares in issue by a ratio of 50:1. Following the reorganisation, the nominal
value of each ordinary share is 1 pence per share (pre-reorganisation: 0.02
pence per share).
At the end of the period, the number of shares in issue comprised
approximately 249 million ordinary shares (period ended 30 June 2024:
approximately 210 million).
The total authorised number of ordinary shares at 30 June 2025 was
1,000,000,000 shares with a par value of 1 pence per share. All issued
shares of 1 pence are fully paid.
8 Share based payments reserve
Options and warrants
Share options and/or warrants have been granted to Directors and selected
employees as well as various consultants and service providers to the
Company.
The Group had no legal or constructive obligation to repurchase or settle any
option or warrant in cash. Movements in the number of share options and
warrants outstanding during the half year period under review are as follows:
Average exercise price per share No. Options & Warrants
At 1 January 2025 8.38p 45,549,590
Exercised during the half year period under review 5.00p (4,431,338)
Option & warrants on issue as at 30 June 2025 8.74p 41,118,252
Options and warrants exercisable as at 30 June 2025* 6.09p 32,069,590
*Options and warrants for which relevant exercise hurdles and criteria have
been met and that therefore, in accordance with their terms, are able to be
exercised at any time by the holders of those options or warrants.
The fair value of the warrants and options granted in the period was estimated
using the Black Scholes model.
9 Events after reporting date
On 1 April 2025 the Company and the purchaser of CEG Trinidad agreed to
further extend the date for closing of the sale transaction to seven days
after the grant of regulatory approval, with a revised longstop date of 30
August 2025. Subsequent to period end regulatory approvals were obtained and
the sale transaction was completed on 29 August 2025. The Company and the
Purchaser have agreed to a minor variation of the payment terms (but not
overall payment quantum, which remains $1.75m in total) to allow for all
remaining payments to be in cash and not shares. The overall payment quantum
is made up as follows:
· at the time of entering into the transaction (February 2025), the
Company received an initial deposit of $0.25 million in POGH shares
(approximately 4.4 million POGH shares were issued to the Company);
· at Completion, the Company was paid a further $0.5 million in
cash; and
· the Company will be paid a further $1 million in deferred
consideration, all in cash: $0.5 million on 31 August 2026, $0.25 million on
31 December 2026, and $0.25 million on 31 December 2027.
10 Other Information
The comparative financial information set out in this report does not
constitute the Group's statutory accounts for the period ended 31 December
2024 but is derived from those accounts.
A copy of this interim statement is available on the Company's website:
www.cegplc.com (http://www.cegplc.com)
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. END IR PKBBPKBKDFCKRecent news on Challenger Energy
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