Challenger Energy finalises investment from Charlestown, appoints new director

Challenger Energy Group plc (LON:CEG), the Atlantic margin focused energy company, has announced that the investment in the Company by Charlestown Energy Partners LLC has completed on terms and conditions as previously announced, and that Mr Robert Bose, Managing Member of Charlestown, has joined the Board of the Company.

Highlights:

·    Charlestown has advanced a £1.5m loan to the Company;

·    On closing of the farm-out of the Uruguay AREA OFF-1 licence to Chevron, and subject to the prior completion of an agreed share consolidation, this loan (and interest) shall convert into new ordinary shares in the Company at a fixed price of 0.168 pence per share, being a c. 15% premium to the current share price;

·    On Conversion Charlestown’s shareholding will represent a c. 8.7% interest in the Company, thus making Charlestown one of the Company’s largest shareholders;

·    Charlestown’s investment will underpin accelerated commencement of technical activity on Challenger Energy Group’s AREA OFF-3 licence offshore Uruguay; and

·    Mr Robert Bose (a member of the Charlestown oversight committee and currently Chief Executive Officer of Sintana Energy Inc) has been appointed as a Non-Executive Director of the Company, with immediate effect.

Eytan Uliel, Chief Executive Officer of Challenger Energy Group, said:

“We are pleased to have finalised the investment from Charlestown, a specialist investor in energy and E&P, including being a very successful earlier-stage investor in the Namibian conjugate margin which has obvious parallels to Challenger Energy. We also extend our welcome to Charlestown’s Managing Member, Mr. Robert Bose, who has joined our Board. Challenger Energy is at an exciting point in its history, and we look forward to working together with Robert to ensure that we deliver on that promise over the coming period”.

AIM disclosures:

Since 2016, Mr Bose has held sole oversight and responsibility for Charlestown, a private investment vehicle dedicated to investments globally in the energy and metals sectors. Mr Bose’s role encompasses the origination, diligence, execution, and oversight of both direct private equity and public investments. Additionally, Mr Bose currently serves as Chief Executive Officer and a Board Member of Sintana Energy Inc, a significant investment within the Charlestown portfolio, as well as serving on the operating committee and Board of Directors for other private and public portfolio companies. Mr Bose manages and maintains a wide range of relationships expected to be of value to the Company, including those with other family offices, private equity providers, financing partners, and management teams.

The following information is disclosed relating to Mr Bose pursuant to rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies.

Mr Bose, aged 51 years, holds no shares in Challenger Energy plc but has control over Charlestown’s investment in the Company which, on Conversion, will represent an approximately 8.7% interest in the Company’s enlarged share capital. Mr Bose is or has been a director of the following companies during the five years preceding the date of this announcement: