REG - Challenger Energy - URUGUAY UPDATE

Challenger EnergyAnnouncement

14/12/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231214:nRSN6934Wa&default-theme=true

RNS Number : 6934W  Challenger Energy Group PLC  14 December 2023

14 December 2023

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

 

URUGUAY UPDATE

Challenger Energy (AIM: CEG), the Caribbean and Americas focused oil and gas
company, with a range of oil production, development, appraisal, and
exploration assets in the region, is pleased to provide the following update
in relation to its Uruguayan assets:

·    On 11 December 2023, the Company submitted AREA OFF-1 geotechnical
reports to ANCAP, the Uruguayan regulator, as part of its minimum work
programme obligation. Subject to final ANCAP review and approval of these
reports, the Company has now fully discharged the minimum work programme
obligations for the first exploration period of the AREA OFF-1 licence (which
commenced in August 2022 and runs until August 2026), as well as also having
completed various additional discretionary work items designed to enhance the
technical understanding,

 

·    On 12 December 2023, contracts for the previously advised award of
four offshore exploration licences in Uruguay (AREAs OFF-2, OFF-5, OFF-6 and
OFF-7, to Shell, YPF and APA Corporation) were executed at a group signing
ceremony in Montevideo, Uruguay (to which the Company was also invited, and
attended). ANCAP has indicated that the signing of the contract for AREA OFF-4
(an APA-Shell consortium block, adjacent to the Company's AREA OFF-1 block) is
expected to follow shortly, and has indicated that signing of the contract for
the Company's AREA OFF-3 licence, the last remaining offshore block in Uruguay
awarded to the Company in May 2023, will follow soon thereafter.

 

·    The minimum work programmes committed to by the newly signed
licence-holders in respect of the initial exploration period of those licences
is significantly greater in estimated work scope and cost than that applicable
to the Company's AREA OFF-1 and AREA OFF-3 blocks, and includes 3D seismic
acquisition and reprocessing, and in the case of APA Corporation's OFF-6
block, one deepwater exploration well.

 

·    The signing of contracts for these licences also paves the way for
seismic acquisition companies to commence permitting and approval processes
for potential 3D seismic acquisition programmes in Uruguay.  Subject to
permitting and approvals, a survey could occur as early as the late 2024 or
early 2025 seismic acquisition windows.

 

·    The completion of the Company's minimum work programme for the
initial exploration period of AREA OFF-1, the finalisation of contracts for
the aforementioned licences to global majors / NOC, and the ability of seismic
vendors to now progress potential 3D seismic acquisition programmes in Uruguay
also constitute important milestones relevant to a successful conclusion of
the Company's ongoing AREA OFF-1 farm-in process, which continues to proceed
well, with anticipated finalisation in Q1 2024.

 

Eytan Uliel, Chief Executive Officer of Challenger said:

"This week has been extremely significant for the emerging Uruguayan offshore
exploration sector, and highlights how exciting we think the next few years
will be. Challenger has now completed AREA OFF-1's minimum work programme,
well ahead of schedule. At the same time, the finalisation of contracts with
global industry heavyweights for multiple offshore blocks has defined
Uruguay's operator landscape, provided certainty as to their upcoming,
substantial exploration programmes, and has also laid out the pathway to a
potential 3D seismic shoot in late 2024 / early 2025, including coverage of
prospects of interest on AREA OFF-1. These are all important commercial,
technical and operational inputs relevant to our ongoing AREA OFF-1 farm-in
process which, given developments this week, we now expect to be able to
successfully conclude in the first quarter of 2024."

 

For further information, please contact:

 

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

 Eytan Uliel, Chief Executive Officer
 WH Ireland - Nomad and Joint Broker             Tel: +44 (0) 20 7220 1666

 Antonio Bossi / Darshan Patel / Isaac Hooper
 Zeus Capital - Joint Broker                     Tel: +44 (0) 20 3829 5000

 Simon Johnson
 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 a Caribbean and Americas focused oil and gas company,
with a range of oil 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, and in Trinidad and
Tobago, where the Company has a number of producing fields and earlier-stage
exploration / appraisal projects.

 

Challenger Energy is quoted on the AIM market of the London Stock Exchange.

 

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

 

ENDS

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDNKNBBABDDOBD