Challenger Energy Group PLC (LON:CEG, OTCQB:BSHPF) has advised that the transaction for the sale of the entirety of its business and operations in Trinidad and Tobago has been completed. The Company and the purchaser have agreed to a minor variation of the payment terms (but not overall payment quantum) to allow for remaining payments to be in cash and not shares.
Details
· The sale of 100% of the Company’s St Lucia domiciled subsidiary company, Columbus Energy (St. Lucia) Limited, which in turn holds various subsidiary entities that collectively represent all of the Company’s business, assets and operations in Trinidad and Tobago, has completed effective 29 August 2025.
· Completion follows receipt of requisite regulatory approvals in Trinidad and Tobago.
· The purchaser is Steeldrum Ventures Group (Trinidad) Limited (formerly Caribbean Rex Limited), an entity jointly owned by T-Rex Resources (Trinidad) Limited (51%), a wholly owned subsidiary of Predator Oil & Gas Holding Plc, and the West Indian Energy Group Limited (49%), a Trinidadian company active in the domestic oil industry
· Reflective of the longer than anticipated time taken to secure regulatory approvals, the Company and the purchaser have agreed to a variation of the payment terms (but not overall payment quantum, which remains $1.75m in total), to allow for all remaining payments to be in cash (and no further POGH shares) as follows:
§ at the time of entering into the transaction (February 2025), the Company received an initial deposit of $0.25 million in POGH shares (4,411,641 POGH shares were issued to the Company);
§ as at Completion, the Company has been paid a further $0.5 million in cash; and
§ the Company will be paid a further $1 million in deferred consideration, all in cash – $0.5 million on 31 Augusts 2026, $0.25 million on 31 December 2026, and $0.25 million on 31 December 2027.
· Effective from completion WEIGL has assume all liabilities, provisions and potential exposures of the business, assets and operations in Trinidad and Tobago (which for the purposes of the transaction were agreed to be $4.25 million), with the effect that from Completion the Company has no residual exposure to the business and operations in Trinidad and Tobago, and all associated assets, liabilities and exposures reflected in the Company’s financial statements have been eliminated. Seller’s warranties under the sale and purchase agreement remain applicable for a period of 12 months from Completion.
· At year-end 2027, an additional contingent payment of potentially up to $2 million is also available, under certain conditions linked to production exceeding 750 bopd.
Eytan Uliel, CEO of Challenger Energy, said:
“I am pleased to report that we have completed the sale of our business in Trinidad and Tobago. This allows full focus on our core assets in Uruguay, where we have a compelling opportunity to create near-term value for our shareholders”.
