REG - Challenger Energy - Operational Update & Exercise of Warrants

Challenger EnergyAnnouncement

06/05/2025 07:00

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RNS Number : 3526H  Challenger Energy Group PLC  06 May 2025

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

6 May 2025

Challenger Energy Group PLC

 

 Operational Update

Exercise of Warrants

 

Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) ("Challenger" or "the
Company"), the Atlantic margin focused energy company, is pleased to provide
the following operational update, and to advise of the exercise of warrants.

Eytan Uliel, CEO of Challenger Energy, said:

"One-third of the way into the year, I can report that 2025 is progressing to
plan. We're on track to see 3D seismic acquired over AREA OFF-1 later this
year, on track to complete our technical work on AREA OFF-3 and launch a
farm-out process for that block in the second half of the year, and we're
progressing the sale of the Trinidad business. Our balance sheet is strong,
our work programs are fully funded, and we have no need for additional capital
any time in the foreseeable future. Overall, we're pleased with how Challenger
Energy is currently positioned, and we look forward to sharing news as the
rest of the year unfolds."

Uruguay AREA OFF-1 (60% Chevron - operator; 40% Challenger)

·    The Uruguayan Ministry of Environment is holding public consultations
regarding the issuance of requisite environmental permits for the proposed 3D
seismic acquisition campaign over AREA OFF-1, as well as over other offshore
areas in Uruguay under contract to other industry participants. The Company
expects the necessary permits will be issued to allow for seismic acquisition
on AREA OFF-1 to start in early Q4, 2025.

·    In anticipation of permits being issued, various operators are
already in discussions with seismic companies for planned surveys across the
Uruguay offshore region. The goal is to optimise the 3D seismic programme
timing based on weather, acquisition parameters and integrated operations
seeking incident free and efficient acquisition campaigns. The parties
associated with AREA OFF-1 (operator Chevron, Challenger) are working
collaboratively in this process.

Uruguay AREA OFF-3 (100% Challenger - operator)

·    Reprocessing of 1,250 km of 3D seismic data from the previously
acquired BP survey is now largely complete. A satellite seep and slick study,
a seabed geochemistry study and a multibeam echo sound survey have also been
completed, with encouraging complementary results to ongoing seismic work
(refer to the Company's RNS of 5 March 2025).

·    The next stage of the Company's work program for AREA OFF-3, being
technical analysis and interpretation ahead of updated mapping, prospect
definition and volumetrics, has commenced, with anticipated completion in
early Q3 2025. Once finalised, this work programme (similar in scope to that
successfully undertaken for AREA OFF-1) is expected to underpin a formal
farm-out process for AREA OFF-3 through the second half of 2025.

Trinidad and Tobago

·    In February 2025 the Company entered into an agreement for the
disposal of the entirety of its operations in Trinidad and Tobago for a total
transaction value of $6 million, and potentially up to $8 million (refer to
the Company's RNS of 18 February 2025).

·    The agreement for disposal provided for the regulatory approval
necessary for closing of the sale transaction to be finalised by 30 April
2025. The Company and the buyer have agreed to a 60-day extension for
completion of the sale, to 30 June 2025 following administrative closing
uncertainty due to the snap-election called in Trinidad and Tobago in
mid-March. The resulting election, held on 28 April 2025, led to a subsequent
change of Government.

Corporate

·    The Company's admission to trade on the OTCQB Venture Market in the
United States became effective in April 2025 (refer to the Company's RNS of 2
April 2025), with encouraging initial interest from U.S.-based investors. The
Company has and will continue to engage in a broad range of marketing efforts
to introduce the Company to new potential investors in the U.S. / North
America, as well as continuing to support regular engagement activities within
the UK.

·    Despite the currently turbulent market conditions and lower oil
prices, the Company confirms that it has sufficient funding available to meet
all currently projected expenses and work program costs through at least all
of 2025 and 2026.

Exercise of Warrants

·    The Company has received notification from a warrant-holder to
exercise warrants to subscribe for a total of 3,591,338 new ordinary shares
of 1p each ("Warrants") in the share capital of the Company (the "New Ordinary
Shares") with an exercise price of 5 pence per share. The warrant-holder is a
service provider to the Company who was awarded Warrants as part of
compensation for services - no other options or warrants are being exercised
by any Directors / PDMRs of the Company. Accordingly, the Company will proceed
to issue the New Ordinary Shares to the warrant-holder for an aggregate cash
value of £179,566.90.

·    Application will be made for admission to trading on the AIM of a
total of 3,591,338 New Ordinary Shares of 1p each ("Admission"). It is
expected that Admission will be effective on or around 9 May 2025. On
Admission the New Ordinary Shares will rank pari passu with the Company's
existing ordinary shares.

·    Following Admission, the Company's issued share capital will consist
of 249,312,660 ordinary shares, with each ordinary share carrying the right
to one vote. The Company does not hold any ordinary shares in treasury. This
figure of 249,312,660 ordinary shares may therefore be used by shareholders
in the Company, as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change in
their interest in, the share capital of the Company under
the FCA's Disclosure Guidance and Transparency Rules.

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/ George Duxberry
 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 / 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/)

 

ENDS

 

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