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CEG Challenger Energy Group Plc

5.625
0.00 (0.00%)
23 Dec 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Challenger Energy Group Plc LSE:CEG London Ordinary Share IM00BPLZ1D89 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 5.625 5.25 6.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs 4.02M -19.56M -0.0932 -0.60 11.81M

Challenger Energy Group PLC AREA OFF-1 Farm-Out Completion

29/10/2024 7:00am

RNS Regulatory News


RNS Number : 9385J
Challenger Energy Group PLC
29 October 2024
 

29 October 2024

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

 

AREA OFF-1 Farm-Out Completion

 

Challenger Energy (AIM: CEG), the Atlantic margin focused energy company, is pleased to announce that the farmout of a 60% interest in the AREA OFF-1 block, offshore Uruguay, to Chevron Mexico Finance LLC, Sucursal Uruguay ("Chevron") (a wholly-owned subsidiary of Chevron Corporation (NYSE: CVX)), has today been completed, with all required approvals from the Uruguayan regulatory authorities having been received, and the farmout taking legal effect.

As an immediate result, the Company has received a cash payment of US$12.5 million while retaining a 40% non-operating interest in AREA OFF-1. Chevron has assumed operatorship of the block and going forward will carry 100% of the Company's share of the costs associated with a 3D seismic campaign on AREA OFF-1 (up to a maximum of US$15 million net to Challenger Energy). Thereafter, should Chevron decide to drill an initial exploration well on the AREA-OFF 1 block, Chevron will also carry 50% of the Company's share of costs associated with that well (up to a maximum of US$20 million net to Challenger Energy).

The Company is working closely with ANCAP, the Uruguayan regulator, and Chevron to ensure a smooth transition of operatorship, as well as participating in the detailed planning for an upcoming 3D seismic campaign, targeted to commence in the next available shoot window (H1 2025). Further updates will be provided as planning and execution of the seismic campaign progresses.

 

Eytan Uliel, Chief Executive Officer of Challenger said:

"Completion of the AREA OFF-1 farmout is a game-changer for Challenger Energy. We've achieved an outcome that introduces Chevron, a recognised industry leader, as operator of the block, who will now commence with executing a considerable value-creating work program. The cash received and farmout terms will ensure that our Company is fully funded for the foreseeable future. And, just as important, this farmout validates our capabilities in terms of securing early-access to promising exploration blocks, and progressing them rapidly via high-quality technical work. In the coming months we expect to communicate plans for 3D seismic acquisition on AREA OFF-1, and at the same time we will be fully engaged in a technical work program for our second Uruguay licence, AREA OFF-3, applying the learnings from work on AREA OFF-1 - our objective is to be in a position to kick off a farm-out process for that block in mid-2025. The next year will thus be an exciting and busy time for Challenger Energy."

 

For further information, please contact:

 

Challenger Energy Group PLC

Eytan Uliel, Chief Executive Officer

Tel: +44 (0) 1624 647 882

Zeus - Nomad and Joint Broker

Simon Johnson / Antonio Bossi / Darshan Patel

Tel: +44 (0) 20 3829 5000

Stifel - Joint Broker

Ashton Clanfield / Callum Stewart / Simon Mensley

Tel: +44 (0) 20 7710 7600

 

Gneiss Energy Limited - Financial Adviser

Jon Fitzpatrick / Paul Weidman / Doug Rycroft

Tel: +44 (0) 20 3983 9263

CAMARCO - Financial PR

Billy Clegg / Georgia Edmonds / Tomisin Ibikunle

  Tel: +44 (0) 20 3757 4980

Jonathan Paterson - Investor Relations

jonathan.paterson@harbor-access.com

  Tel: +1 475 477 9401

 

 

 

Notes to Editors

 

Challenger Energy is an Atlantic-margin focused energy company, with production, development, appraisal, and exploration assets in the region. Challenger Energy's primary assets are located in Uruguay, where the Company holds two high impact offshore exploration licences, totalling 19,000km2 (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.

 

https://www.cegplc.com 

 

 

ENDS

 

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