The Challenger Energy Group PLC (LON: CEG) share price surged 27.55% after issuing an update about the AREA OFF-1 license block in offshore Uruguay. The company noted that it had reached an initial prospect inventory of 1 to 2 billion barrels of oil equivalent in the license area from its 2D seismic reprocessing work.
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The energy company has identified three sizeable prospects derived from multiple play types consistent with the recently derisked successful conjugate margin drilling in Namibia by Shell and TotalEnergies. The company reminded investors that it had a first-mover advantage in Uruguay before all the major oil companies arrived.
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Challenger Energy revealed that it had used Amplitude Variation with Offset (AVO) analysis to further de-risk the data from the seismic reprocessing work. The firm also used satellite seep analysis and geochemical sampling to corroborate the robustness of the play.
The company plans to kick off the farm-out process, given the recent competitive bidding process for the other license blocks in offshore Uruguay. The firm has completed reprocessing of 2,100 km of legacy 2D seismic data, with ongoing mapping and interpretation.
Challenger Energy has identified three prospects known as the “Teru Teru” prospect, the “Anapero” prospect and the “Lenteja” prospect. The company is proceeding with discretionary technical work to define additional leads and prospects and further refine the previous mapping of identified prospects.
Eytan Uliel, Challenger Energy’s CEO, said: “In 2020, when no other parties were ready to commit, Challenger Energy was a first-mover into offshore Uruguay, securing the AREA OFF-1 block on an uncontested basis and highly advantageous work terms. Since then, margin-opening discoveries offshore Namibia by TotalEnergies and Shell 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.”
Adding:
“As a result, Uruguay has become a new global exploration hotspot, evidenced by the fact that in the last 12 months, all but one of the available offshore blocks have been licenced by oil majors and NOCs, bidding sizeable work programs.”
Challenger Energy shares had given up most of their gains at the time of writing.
*This is not investment advice.
The Challenger Energy (CEG) share price.
The Challenger Energy (CEG) share price surged 27.55% to trade at 0.125p, from Tuesday’s closing price of 0.098p.
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