London South East welcomed Challenger Energy (CEG) CEO Eytan Uliel to our Natural Resources webinar last night (23.5.23).

AIM-listed oil explorer Challenger Energy are best known these days for their offshore Uruguay licence which they have been working on since 2020. They have been busy proving up the potential for between 1 and 2 billion barrels of oil in the Uruquay basin, which geologically mirrors the prolific offshore Namibia basin where super-discoveries have been made.

CEG are currently running a farm-out process to find a suitor with deep pockets to help develop the licence further. Two AVO class II and III finds need to be examined more closely and 3D seismic is the necessary next step before an expensive deep water appraisal well is drilled.

Long term holders may know Challenger for the Perseverance drill in the Bahamas. And along the way they acquired the Columbus assets in Trinidad and Suriname, which now break even or possibly make a small profit. CEG currently have a market cap of £9 Million pounds, relatively low considering the potential of the Uruguay asset.