REG - Challenger Energy - Uruguay Operational Update

Challenger EnergyAnnouncement

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RNS Number : 9909Q  Challenger Energy Group PLC  15 July 2025

15 July 2025

Challenger Energy Group PLC

 

 Uruguay Operational Update

 

Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) ("Challenger" or "the
Company") is pleased to provide an operational update on its licences in
Uruguay.

Highlights

·    AREA OFF-1: Uruguay environmental permitting process is well
advanced; on-track for 3D seismic acquisition to commence in Q4 2025

·    AREA OFF-3: encouraging preliminary technical results; work programme
expanded to enable full evaluation of new amplitude anomalies identified; on
track to commence farm-out process in September 2025, with a technical update
to be provided ahead of data room opening

Eytan Uliel, CEO of Challenger Energy, said:

"We are making excellent progress in Uruguay. For AREA OFF-1, we remain on
track to commence 3D seismic acquisition in Q4, a hugely value-additive
component of the geotechnical work, and fundamental to support any future well
drilling decision. For AREA OFF-3, early results from our interpretation of
the reprocessed 3D seismic are encouraging, and we have thus expanded our
technical work to allow for a more thorough evaluation of several of the new
amplitude anomalies we have identified. Our aim is to provide a technical
update ahead of commencing a farm-out process as planned, later this year. In
summary, both Uruguay blocks are progressing in line with expectations,
positioning Challenger for a busy and exciting period through the second half
of 2025 and the first half of 2026."

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

·   Several Uruguay offshore exploration licence operators are seeking to
undertake 3D seismic data acquisition in the next available season (southern
hemisphere summer, late 2025/early 2026). This includes the planned campaign
over AREA OFF-1. The Uruguay Ministry of Environment is conducting public
consultations ahead of issuance of requisite environmental permits, with
separate consultations being held for the various seismic vendors wishing to
obtain a permit. A consultation was thus held in respect of TGS (February) and
Viridian (May), with an additional, final consultation now scheduled for all
remaining permit applicants in late July.

·    As the consultation process is expected to conclude in July, the
grant of permits is expected to follow in August/September. This would in turn
enable seismic acquisition on AREA OFF-1 to commence in Q4 2025. Preparatory
work for commencement of the campaign in this timeframe is underway and
progressing well.

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

·  Reprocessing of 1,250 km(2) of 3D seismic data from the previously
acquired survey has been completed, along with various geochemical studies,
notably a satellite seeps and slick study, a seabed micro-seepage study, and a
multibeam echosounder seabed survey. The Company is now actively engaged in
the next phase of evaluation including mapping and interpretation to establish
a portfolio of leads, high-graded after DHI/AVO interrogation, prior to
volumetric analysis. This represents a similar technical analysis process that
was successfully applied on AREA OFF-1.

·    Preliminary technical results are encouraging. The Company's ongoing
work programme has identified several new, amplitude-supported prospects of
material size, in relatively shallow waters on AREA OFF-3. One of the most
promising of these, which the Company has named "Benteveo", extends beyond the
3D seismic data set. Challenger Energy has therefore proceeded to licence
additional data to enable analysis of the full extent of Benteveo, and
estimates it will take a further six to eight weeks to integrate this
additional data into the ongoing technical work.

·    Accordingly, the Company expects it will be in a position to open the
virtual data room for the planned AREA OFF-3 farm-out process in September
2025. A technical update will be provided ahead of opening of the data room.

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
 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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