 2024 Year-End Letter to Shareholders The following letter to shareholders will also be published via the Company's website. Dear Shareholders As 2025 begins, I write to thank you, our shareholders, for your support throughout 2024, a milestone year for Challenger Energy, during which we made significant progress in our two prime offshore exploration blocks in Uruguay. AREA OFF-12024 saw the successful farmout of the AREA OFF-1 block to Chevron announced on 6 March 2024. This transaction was a result of our high-quality technical work, that established the licence area's multi-billion-barrel prospectivity. Chevron's commitment to fully carry the Company's share of costs for a 3D seismic campaign - and 50% of the costs for an initial exploration well should Chevron move forward with it - positions AREA OFF-1 for significant progress in the coming year, but with reduced financial risk. Successful completion of the farmout also delivered a $12.5 million cash payment to Challenger Energy and, at the same time, we retain a 40% non-operating interest in the block, affording us enormous flexibility in how we participate in this block's future. AREA OFF-3On 11 March 2024, we formalized our AREA OFF-3 license, marking the start of an initial four-year exploration period. This highly prospective 13,252 km² area, located in relatively shallow waters about 100 kilometers off the Uruguayan coast, benefits from extensive 2D and 3D seismic coverage and, like AREA OFF-1, has multi-billion-barrel resource potential from multiple play types. We have since commenced our technical work program for AREA OFF-3, which centers around reprocessing 3D seismic data. This critical activity, set to conclude in the first half of 2025, will refine the prospect inventory, identify potential drill locations, and support a formal farmout process targeted to commence in mid-2025. The anticipated costs of our work program, projected at $1-1.5 million, reflect our commitment to a disciplined and value-driven approach to early-stage exploration. Trinidad & The BahamasWe are currently reviewing our assets in Trinidad and The Bahamas, and anticipate making a decision on their future in the first half of 2025. FinancialThe funds received on completion of the Chevron farmout means that we are fully funded for the foreseeable future - both in terms of corporate overhead and all planned work programs - with no debt, a healthy cash surplus, and no unfunded commitments or obligations. Thus, as we exit 2024 and head into 2025, I believe our Company is in the best financial position it has been in for many years. ----- 2024 underscores Challenger Energy's ability to navigate complex projects, partner with leading industry players, and leverage our assets to create value for shareholders. As we look ahead to 2025, our focus remains steadfast: advancing exploration activities in Uruguay, optimizing our portfolio, and continuing to execute on our business strategy. Once again, thank you for your support. I'm proud to reflect on what has been a transformative year for Challenger Energy, and we are excited for 2025 and beyond. Sincerely,Eytan Uliel - Chief Executive OfficerChallenger Energy Group Plc |
There will be unfortunately for them, there's lots of activity locally (Uruguay, Argentina, Brazil) and in Namibia (our geographical twin) The newsflow is spread very largely making it a very steady holdQ1- preliminary seismic results, operating update, Bahamas update (probably leaving the license), Trinidad update (planned work? Sale?)Q2- more in depth siesmic, call for farmin and data room open, chevron update on work/Shell $150m study update, APA dril plan?MMS have very little stock availability at these low levels there was only 50-100k shares left sub 8p Friday and the buying from lows hasn't been huge.Trinidad could surprise, an American company just won the licence that fully surrounds us and the amount of equipment and workforce they'd gain buying us makes it a target.A junior that was lucky enough to be in the orange basin saw their mcap reach 500m |
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