REG - Challenger Energy - Uruguay AREA OFF-1 farm-out update

Challenger EnergyAnnouncement

23/09/2024 07:00

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RNS Number : 1398F  Challenger Energy Group PLC  23 September 2024

23 September 2024

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

 

Uruguay AREA OFF-1 farm-out update

On 6 March 2024, Challenger Energy (AIM: CEG) announced that it had entered
into a farmout agreement for the AREA OFF-1 licence in Uruguay with Chevron.
Completion of the farmout is subject to required regulatory approvals in
Uruguay.

The Company is pleased to announce that on 19 September 2024, the Board of
Directors of ANCAP (the Uruguayan state-owned oil company with regulatory
responsibility for offshore licences) approved the farmout. Following this
approval, and in accordance with Uruguayan legal requirements, the process has
progressed to its final stage, which consists of the farmout being notified to
the Uruguayan Ministry of Industry, Energy and Mining, and at the same time
the requisite Consortium Agreement between the Company and Chevron being
submitted to the Uruguayan Ministry of Economy and Finance for registration.
Once a 20-day notification period has elapsed and the Consortium Agreement is
registered, the farmout can be completed.

 Eytan Uliel, Chief Executive Officer of Challenger Energy, said:

"The farmout of our AREA OFF-1 block in Uruguay is transformational for
Challenger Energy. Since entering into the farmout agreement we have been
diligently working through various regulatory approval processes, culminating
in ANCAP now having formally approved the farmout, which is the key approval
required. We do not anticipate that remaining procedural processes will take
long to complete, so we expect full completion of the farmout within the next
four to eight weeks. This in turn will enable Chevron, as incoming operator of
the block, to move forward with 3D seismic acquisition on an accelerated
basis, targeting commencement in early 2025. The coming months will thus be a
busy and exciting time for our Company - we will keep shareholders advised of
continued progress."

--

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018 (as amended).

 

For further information, please contact:

 

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

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

 Simon Johnson / Antonio Bossi / Darshan Patel / Isaac Hooper

 Gneiss Energy Limited - Financial Adviser                      Tel: +44 (0) 20 3983 9263

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

 Billy Clegg / Hugo Liddy / Sam Morris

 

Notes to Editors

 

Challenger Energy is an Atlantic-margin focused energy company, with
production, development, appraisal, and exploration assets in the region. The
Company's primary assets are located in Uruguay, where the Company holds high
impact offshore exploration licences. Challenger Energy is quoted on the AIM
market of the London Stock Exchange.

 

https://www.cegplc.com (https://www.cegplc.com/)

 

ENDS

 

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