Challenger Energy Group PLC CORY MORUGA SALE COMPLETION (5618S)

TIDMCEG

RNS Number : 5618S

Challenger Energy Group PLC

07 November 2023

7 November 2023

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

CORY MORUGA SALE COMPLETION

Further to announcements of 20 December 2022, 8 March 2023, 1 June 2023 and 30 August 2023, 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 advise that the transaction for the sale of the Cory Moruga licence, onshore Trinidad, to Predator Oil & Gas Holdings PLC ("PRD"), was completed on 6 November 2023.

As a consequence of negotiations associated with reaching an agreed position with the Trinidadian Ministry of Energy and Energy Industries ("MEEI"), CEG and PRD agreed to vary certain terms of the previously announced agreement between them, as follows:

   --    On completion, PRD paid to CEG US$1 million in cash; 

-- A further US$1 million, due to be paid by PRD to CEG six months from completion, will instead be paid immediately by PRD direct to MEEI, in part agreed settlement of past dues on the Cory Moruga licence; and

-- A contingent US$1 million payable by PRD to CEG in the event of the Cory Moruga field achieving certain future production benchmarks, and PRD granting to CEG a future back-in right to a 25% interest in the Cory Moruga field at an uplifted multiple of cost base, will no longer apply, reflective of CEG's contribution to the value of settlement of the balance of past dues on the Cory Moruga licence, which will be recovered by MEEI via agreed quarterly arrears payments.

In addition to the cash consideration received, completion of the transaction will have the effect of extinguishing various liabilities in the CEG accounts relating to the Cory Moruga licence, amounting to approximately US$4.5 million. Further, in parallel with completion, all historical differences and disputes between CEG and PRD in relation to the Inniss-Trinity pilot CO(2) EOR Project have been fully and amicably resolved, pursuant to the terms of the previously announced Settlement Agreement between CEG and PRD.

For further information, please contact:

 
 Challenger Energy Group PLC              Tel: [phone] 
  Eytan Uliel, Chief Executive Officer     882 
 WH Ireland - Nomad and Joint Broker      Tel: [phone] 
  Antonio Bossi / Darshan Patel / Isaac    1666 
  Hooper 
 Zeus Capital - Joint Broker              Tel: [phone] 
  Simon Johnson                            5000 
 Gneiss Energy Limited - Financial        Tel: [phone] 
  Adviser                                  9263 
  Jon Fitzpatrick / Paul Weidman / Doug 
  Rycroft 
 CAMARCO                                  Tel: [phone] 
  Billy Clegg / Hugo Liddy / Sam Morris    4980 
 

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

ENDS

For further information, please contact:

 
 Challenger Energy Group PLC              Tel: [phone] 
  Eytan Uliel, Chief Executive Officer     882 
 WH Ireland - Nomad and Joint Broker      Tel: [phone] 
  Antonio Bossi / Darshan Patel / Isaac    1666 
  Hooper 
 Zeus Capital - Joint Broker              Tel: [phone] 
  Simon Johnson                            5000 
 Gneiss Energy Limited - Financial        Tel: [phone] 
  Adviser                                  9263 
  Jon Fitzpatrick / Paul Weidman / Doug 
  Rycroft 
 CAMARCO                                  Tel: [phone] 
  Billy Clegg / Hugo Liddy / Sam Morris    4980 
 

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

ENDS

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November 07, 2023 02:00 ET (07:00 GMT)