Challenger Energy Group is making a decisive move to enhance its offshore exploration capabilities by divesting its Trinidad and Tobago assets. This strategic shift allows the company to concentrate on its high-potential offshore blocks in Uruguay, positioning itself for significant growth in the Atlantic margin.
In February 2025, Challenger Energy entered into an agreement to sell its entire Trinidad and Tobago operations, including the Goudron, Innis-Trinity, and Icacos fields, for a total transaction value of \$6 million, with the potential to increase to \$8 million based on production milestones. The sale, involving the transfer of its St Lucia-domiciled subsidiary Columbus Energy to Caribbean Rex Limited, a joint venture between T-Rex Resources and the West Indian Energy Group, marks a complete exit from the region. This move enables Challenger to reallocate resources and focus on its core offshore exploration activities.
Challenger’s offshore portfolio in Uruguay comprises two significant blocks: AREA OFF-1 and AREA OFF-3. AREA OFF-1, operated by Chevron with a 60% stake, and Challenger holding the remaining 40%, is progressing towards a 3D seismic acquisition campaign slated for early Q4 2025, pending environmental permits. This collaboration with Chevron underscores the block’s potential and the strategic importance of the partnership.
AREA OFF-3, entirely owned and operated by Challenger, has seen substantial progress. The company has nearly completed the reprocessing of 1,250 kilometers of 3D seismic data from a previous BP survey. Complementary studies, including satellite seep and slick analysis, seabed geochemistry, and multibeam echo sound surveys, have yielded encouraging results. These findings are instrumental in refining the block’s prospectivity and preparing for a farm-out process in the second half of 2025.
Financially, Challenger Energy is on solid footing. The company’s CEO, Eytan Uliel, has affirmed that the balance sheet is robust, with work programs fully funded through at least 2026. This financial stability allows Challenger to pursue its strategic objectives without the immediate need for additional capital, providing confidence to investors and stakeholders.
Challenger Energy Group Plc (LON:CGE) is an Atlantic-margin focused energy company, with production, development, appraisal, and exploration assets in the region. Challenger Energy’s primary assets are located in Uruguay, where the Company holds two high impact offshore exploration licences, totalling 19,000km2 (gross) and is partnered with Chevron on the AREA-OFF 1 block. Challenger Energy is quoted on the AIM market of the London Stock Exchange.
