RE: Farm out with strong interest from majors31 May 2023 10:34
Challenger Energy Group plc (LON:CEG), the Caribbean and Americas focused oil and gas company, with a range of oil production, development, appraisal, and exploration assets, has provided the following update in relation to the AREA OFF-1 block, offshore Uruguay.
HIGHLIGHTS
• Volumetric assessment of AREA OFF-1’s three primary prospects (Teru Teru, Anapero, Lenteja) has been completed
• Assessed estimated recoverable resource (EUR) of approximately 2.0 billion barrels (Pmean, unrisked), and over 4.9 billion barrels in an upside case (P10, unrisked)
• Ongoing technical work has also identified additional new leads and prospects, once evaluation is complete, expected to add to the overall AREA OFF-1 resource and prospect inventory
• Formal adviser-led farm-out process has been initiated; strong interest received
Eytan Uliel, Chief Executive Officer of Challenger Energy, said:
“We continue to be encouraged by the opportunity that our AREA OFF-1 licence in Uruguay represents. Our technical work highlights how AREA OFF-1 is clearly world class acreage with massive resource potential, in what has become a global exploration hotspot. To capitalise on this, I can confirm that a farm-out process has now commenced, with very strong initial indications of interest received from multiple major oil companies. Our target is to complete a farm-out transaction by year end, so that we can continue to rapidly progress work on the block, and thereby generate value for shareholders.”
DETAILS