REG - Challenger Energy - Uruguay Update

Challenger EnergyAnnouncement

27/06/2022 07:00

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RNS Number : 2098Q  Challenger Energy Group PLC  27 June 2022

27 June 2022

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

 

Uruguay Update

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, notes recent commentary on the recent Uruguay
licensing round and in relation to its AREA OFF-1 petroleum licence
offshore Uruguay, and provides the following context:

·    On 23 June 2022 ANCAP, the Uruguayan state-owned petroleum company,
advised publicly that three offshore blocks in Uruguay have been licenced
following bids received in the most recent ANCAP 2022 Open Bidding Round.

·    Two blocks have been awarded to Shell - the shallow offshore block
immediately adjacent to Challenger's OFF-1 block (AREA OFF-2), and one
deep-water block (AREA OFF-7). ANCAP has reported that the work Shell
committed to undertake in relation to these blocks in the initial 4-year
exploration period includes the acquisition of new 3D seismic.

·    One deep-water block (AREA OFF-6) has been awarded to APA Corporation
(formerly Apache). ANCAP has reported that the work APA Corporation committed
to undertake in relation to this block in the initial 4-year exploration
period includes the drilling of an exploration well.

·    The award of these three blocks is in addition to the OFF-1 block
previously awarded to Challenger. Of the three new blocks awarded, the OFF-2
block, which is directly adjacent to Challenger's OFF-1 block, was the only
block which received competing bids, with both Shell and APA Corporation
having submitted proposals.

·    The aggregate value of work committed across blocks OFF-2, OFF-6 and
OFF-7 by Shell and APA Corporation in the next 4 years, in respect of both
technical and exploration activities including well drilling by APA
Corporation, is stated by ANCAP to be approximately US$200 million.

·    The full text of the announcement by ANCAP is available on ANCAP's
website - www.ancap.com.uy (http://www.ancap.com.uy)

Challenger Energy considers the entry into Uruguay of two well regarded
international companies, and the commitment by both to undertake sizeable and
meaningful work programs during an initial exploration period (including 3D
seismic acquisition and new well drilling), to be a highly positive
development, validating both the Company's decision to enter Uruguay in 2020
and underscoring the solid technical foundation and excellent value
proposition represented by the OFF-1 block.

The Company's considers its OFF-1 licence area and the broader offshore
Uruguay play system to be analogous to the recent prolific, conjugate margin
discoveries made offshore Namibia by TotalEnergies (the Venus well) and Shell
(the Graff well), where reported multi-billion-barrel Cretaceous turbidite
reservoirs have been encountered. The AREA OFF-1 licence exhibits the same
Aptian play source rock and petroleum systems being present.

As noted in previous Company releases, the OFF-1 block contains a management
estimated resource potential exceeding 1.5 billion barrels of oil equivalent
recoverable (BBOE), based on current mapping from multiple exploration plays
and leads in relatively shallow waters, and with significant upside running
room. This estimate is corroborated by formal resource estimates provided by
ANCAP of 1.35 BBOE as a P50 expected ultimate recoverable resource.

It is noted that in addition to work that will now be undertaken by Shell and
APA Corporation on their Uruguayan blocks, various public statements and news
releases indicate that relevant additional work and drilling activities are
currently underway or being planned by multiple parties for the balance of
2022 and 2023, including additional exploration and appraisal wells being
drilled in Namibia, and 3D seismic acquisition in Northern Argentina. These
activities are expected to further the technical understanding of the OFF-1
block.

An updated presentation in relation to the OFF-1 block will be placed on the
Company's website - www.cegplc.com (http://www.cegplc.com) .

----

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).

In accordance with the AIM Note for Mining and Oil & Gas
Companies, CEG discloses that Mr. Randolph Hiscock the Company's New
Business Director and Uruguay Project Lead, is the qualified person who has
reviewed the technical information contained in this document. He has a
Masters in Science (Geology) and is a member of the AAPG & PESGB.  He has
over 35 years' experience in the oil and gas industry.  Randolph
Hiscock consents to the inclusion of the information in the form and context
in which it appears.

 

For further information, please contact:

 

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

 Eytan Uliel, Chief Executive Officer
 Strand Hanson Limited - Nomad                   Tel: +44 (0) 20 7409 3494

 Rory Murphy / James Spinney / Rob Patrick
 Arden Partners plc - Broker                     Tel: +44 (0) 20 7614 5900

 Simon Johnson / Antonio Bossi
 CAMARCO                                           Tel: +44 (0) 20 3757 4980

 Billy Clegg / James Crothers / Hugo Liddy

 

Notes to Editors

 

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas
company, with a range of exploration, appraisal, development and
production assets and licences, located onshore in Trinidad and Tobago, and
Suriname, and offshore in the waters of The Bahamas and Uruguay. In Trinidad
and Tobago, Challenger Energy has five (5) producing fields, two (2) appraisal
/ development projects and a prospective exploration portfolio in the South
West Peninsula. In Suriname, Challenger Energy has on onshore appraisal /
development project. Challenger Energy's exploration licences in Uruguay, the
South West Peninsula of Trinidad, and The Bahamas offer high-impact value
exposure within the overall portfolio value.

 

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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