(Alliance News) - Challenger Energy Group PLC on Monday said that it has formally signed its Area Off-3 licence, located offshore Uruguay.
According to the Caribbean and America-focused oil and gas company, the licence was initially awarded on June 2, and signed in Montevideo on March 7. As such, the first exploration period will start on June 7, and run for four years until June 6, 2028.
The licence is located in "relatively shallow" water depths, 100 kilometres off the Uruguayan coast. It has two previously identified material prospects, Challenger Energy noted, with currently estimated gross resource potential of up to around two billion barrels of oil, and up to around nine trillion cubic feet gas.
"Area Off-3 represents a successful expansion of the company's business in Uruguay, a country that has fast become one of the world's frontier exploration hotspots. We believe that Area Off-3 has strong technical merit and offers an exciting value-creation opportunity. Therefore, like with Area Off-1, our immediate strategy for Area Off-3 is to commence accelerated technical work, in support of seeking an early farm-out," said Chief Executive Officer Eytan Uliel.
Challenger Energy Group shares were trading 0.1% lower at 0.15 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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Challenger Energy (CEG)