(Alliance News) - Challenger Energy Group PLC on Wednesday said its 2D seismic survey has identified an initial prospect inventory of between 1 and 2 billion barrels of oil for its AREA OFF-1 block, offshore Uruguay.
The Caribbean and America-focused oil and gas company said the 2D seismic reprocessing had confirmed a "considerable value uplift" in the block, with three high-potential prospects having been identified from two material play types.
The newly identified prospects: Teru Teru, Anapreo and Lenteja, cover a total of 1,385 square kilometres. The discoveries are analogous to discoveries the company has previously made in Namibia, it said.
The completed reprocessing forms part of the company's geotechnical assessment programme, which is due to be completed by the third quarter of 2023.
The firm said it is aiming to accelerate value realisation from the AREA OFF-1 license by introducing a strategic partner in 2023.
Chief Executive Eytan Uliel said: "Margin-opening discoveries offshore Namibia by TotalEnergies [SE] and Shell [PLC] have made it possible to correlate what are now proven, oil producing source rocks directly across into the conjugate margin basins of Uruguay's waters."
"Our next-step objective is to farm-out to an industry partner(s), so we can fast-track a 3D seismic acquisition. The high-quality data set we have now compiled, and the intellectual property created, positions us well, and we will shortly be initiating a formal farm-out process."
Challenger shares rose 7.7% to 0.11 pence each in London on Wednesday afternoon.
By Harvey Dorset, Alliance News reporter
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