TIDMCEG
RNS Number : 0231B
Challenger Energy Group PLC
31 May 2023
31 May 2023
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
URUGUAY AREA-OFF 1 UPDATE
Challenger Energy (AIM: CEG), the Caribbean and Americas focused
oil and gas company, with a range of oil production, development,
appraisal, and exploration assets, provides 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
On 26 April 2023, the Company advised of the initial results of
its geotechnical work program at the Company's AREA OFF-1 licence,
offshore Uruguay. Since that time, the Company has continued with
various specific technical and commercial work streams, and is
pleased to provide the following update.
A. Volumetric Assessment
A volumetric assessment of the the three primary prospects
identified on the AREA OFF-1 block (Teru Teru, Anapero and Lenteja)
has now been completed. This assessment has indicated:
-- a total Oil in Place (OIP) of 6.5 billion barrels of oil
equivalent (BBOE) across all three prospects (Pmean, unrisked), and
over 16 BBOE in an upside case (P10, unrisked)
-- a total Estimated Ultimate Recoverable resource (EUR) of 2.0
billion BBOE across all three prospects (Pmean, unrisked), and over
4.9 BBOE in an upside case (P10, unrisked).
Details are summarised as follows:
TABLE A: OIL IN PLACE RESOURCE, AREA-OFF-1, URUGUAY (MAY
2023)
Oil in Place (mmboe) unrisked
--------------------------------------------------------------------------------
Prospect P10 Pmean P50 P90
----------- ------------------ ------------------- --------------------- ----------------
Teru Teru 5,116 2,334 1,777 527
Anapero 5,267 2,190 1,493 304
Lenteja 5,730 1,969 690 59
Total 16,113 6,493 3,960 890
------------ ------------------ ------------------- --------------------- ----------------
TABLE B: ESTIMATED RECOVERABLE RESOURCE, AREA-OFF-1,
URUGUAY (MAY 2023)
EUR (mmboe) unrisked
--------------------------------------------------------------------------------
Prospect P10 Pmean P50 P90
----------- ------------------ ------------------- --------------------- ----------------
Teru Teru 1,647 740 547 158
Anapero 1,627 670 445 88
Lenteja 1,666 576 198 17
Total 4,940 1,986 1,190 263
------------ ------------------ ------------------- --------------------- ----------------
The Company's internal estimates are that the economic field
size for a discovery in these water and reservoir depths to be in
the range of 150 to 200 million barrels. The EUR (P50) for all
three primary prospects exceeds or approximates this commercial
threshold.
B. Mapping, Interpretation and AVO work
As previously advised, the Company has continued with various
technical workstreams to complete prospect mapping, to finalise the
prospect and lead inventory, and to expand amplitude variation vs.
offset (AVO) analysis from initially 6 reprocessed 2D seismic lines
to 15, driven by the strong results from the initial AVO work
conducted.
Whilst this work remains to be completed, AVO analysis shows
strong Class II / Class III AVO anomalies have been identified for
the Teru Teru and Anapero prospects and are present on multiple
seismic lines, which serves to confirm the areal extent of both
prospects.
C. Additional Leads and Resource Potential
Ongoing technical work has also identified further leads and
prospects on AREA OFF-1. Interpretation and mapping of these
additional leads and prospects is continuing. It is anticipated
that once work is complete, these newly identified leads and
prospects may add further to the overall AREA OFF-1 resource and
prospect inventory. The Company will advise of this additional
exploration potential once work is completed.
Farm-out process
As previously advised, the Company has compiled a comprehensive
data-room, which includes all new work conducted inclusive of the
recently completed volumetric assessment.
A formal adviser-led farm-out process has now commenced, with
the Company having received several unsolicited approaches, and
strong interest from leading industry participants.
The farm-out process has been structured to meet the Company's
commercial objective, which is to complete a farm-out transaction
prior to the end of 2023. Introducing a strategic partner(s) during
2023 will enable the Company to accelerate value realisation from
the AREA OFF-1 licence, by fast-tracking 3D seismic acquisition,
potentially via a multi-client acquisition in early 2024.
An update Uruguay AREA OFF-1 presentation is now available on
the Company's website at www.cegplc.com .
For further information, please contact:
Challenger Energy Group PLC Tel: +44 (0) 1624 647
Eytan Uliel, Chief Executive Officer 882
WH Ireland - Nomad and Joint Broker Tel: +44 (0) 20 7220
Antonio Bossi / Darshan Patel / Enzo 1666
Aliaj
Zeus - Joint Broker Tel: +44 (0) 20 3829
Simon Johnson 5000
CAMARCO Tel: +44 (0) 20 3757
Billy Clegg / Hugo Liddy / Sam Morris 4980
Notes to Editors
Challenger Energy is a Caribbean and Americas focused oil and
gas company, with a range of oil production, development, appraisal
and exploration assets and licences, located onshore in Trinidad
and Tobago, and Suriname, and offshore in the waters of Uruguay and
The Bahamas. In Trinidad and Tobago, Challenger Energy has a number
of producing fields and appraisal / development projects. In
Suriname, Challenger Energy has on onshore appraisal / development
project. Challenger Energy's exploration licences in Uruguay and
The Bahamas offer high-impact value exposure within the overall
portfolio value.
Challenger Energy is quoted on the AIM market of the London
Stock Exchange.
https://www.cegplc.com
COMPETENT PERSON STATEMENT
Technical work referred to in this announcement has been
undertaken by various independent third-party specialist advisors.
This technical work has been overseen by Mr. Randolph Hiscock the
Company's New Business Director and Uruguay Managing Director.
In accordance with the AIM Note for Mining and Oil & Gas
Companies, CEG discloses that Mr. Randolph Hiscock is the qualified
person who has reviewed the technical information contained in this
presentation. He has a Masters in Science (Geology) and is a member
of the AAPG & PESGB, and has over 35 years' experience in the
oil and gas industry. Randolph Hiscock consents to the inclusion of
the information in the form and context in which it appears.
ENDS
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END
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