News listings

energy-pedia farmouts/divestments

Uruguay flagUruguay

South America / GoM >>> Uruguay

Uruguay: Challenger Energy provides update on exploration blocks offshore Uruguay


08 Jan 2025

Photo - see caption

In a Y/E letter to shareholders Challenger Energy reports significant progress regarding its two prime exploration blocks offshore Uruguay.

AREA OFF-1

2024 saw the successful farmout of the AREA OFF-1 block to Chevron announced on 6 March 2024. This transaction was a result of our high-quality technical work, that established the licence area's multi-billion-barrel prospectivity. Chevron's commitment to fully carry the Company's share of costs for a 3D seismic campaign - and 50% of the costs for an initial exploration well should Chevron move forward with it - positions AREA OFF-1 for significant progress in the coming year, but with reduced financial risk.

Successful completion of the farmout also delivered a $12.5 million cash payment to Challenger Energy and, at the same time, we retain a 40% non-operating interest in the block, affording us enormous flexibility in how we participate in this block's future.

AREA OFF-3

On 11 March 2024, we formalized our AREA OFF-3 license, marking the start of an initial four-year exploration period. This highly prospective 13,252 km² area, located in relatively shallow waters about 100 kilometers off the Uruguayan coast, benefits from extensive 2D and 3D seismic coverage and, like AREA OFF-1, has multi-billion-barrel resource potential from multiple play types.

We have since commenced our technical work program for AREA OFF-3, which centers around reprocessing 3D seismic data. This critical activity, set to conclude in the first half of 2025, will refine the prospect inventory, identify potential drill locations, and support a formal farmout process targeted to commence in mid-2025. The anticipated costs of our work program, projected at $1-1.5 million, reflect our commitment to a disciplined and value-driven approach to early-stage exploration.

Photo - see caption
Source: CEG

Trinidad & The Bahamas

We are currently reviewing our assets in Trinidad and The Bahamas, and anticipate making a decision on their future in the first half of 2025.

Financial

The funds received on completion of the Chevron farmout means that we are fully funded for the foreseeable future - both in terms of corporate overhead and all planned work programs - with no debt, a healthy cash surplus, and no unfunded commitments or obligations. Thus, as we exit 2024 and head into 2025, I believe our Company is in the best financial position it has been in for many years.

2024 underscores Challenger Energy's ability to navigate complex projects, partner with leading industry players, and leverage our assets to create value for shareholders. As we look ahead to 2025, our focus remains steadfast: advancing exploration activities in Uruguay, optimizing our portfolio, and continuing to execute on our business strategy.

Original announcement link

Source: Challenger Energy





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current Deals

Current Upstream Deals: 195

Completed Deals

Completed Upstream Deals: 6640

Company Profiles

Current Company Profiles: 2932

Corporate Activity

Current Corporate Activity articles: 4197

Companies Looking

Current number of articles: 466

Company Sales

Current Company Sales articles:1674

Geostudies

Current Geostudies articles: 1003

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Rose & Assocs
energy365
Borchwix
Union Jack Oil 149
Merlin
OPC
Syntillica
Bayphase
Telos NRG
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com