Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Challenger Energy signs new Uruguay licence
(Sharecast News) - Challenger Energy announced the signing of the AREA OFF-3 licence on Monday, marking a significant milestone for the Caribbean and Americas-focussed energy company. The AIM-traded firm said the licence was awarded on 2 June 2023 under Uruguay's 'Open Uruguay Round' process, with exploration set to start on 7 June 2024 and lasting four years until 6 June 2028.
Covering 13,252 square kilometres in relatively shallow waters about 100 kilometres off Uruguay's coast, the licence held substantial promise.
Benefitting from extensive 2D and 3D seismic coverage, the block boasted two previously-identified prospects with estimated gross resource potential of about two billion barrels of oil and up to nine trillion cubic feet of gas.
During the initial exploration phase, Challenger Energy said its obligations were focussed yet impactful, involving licensing, reprocessing and reinterpretation of 1,000 kilometres of legacy 2D seismic data, along with two geotechnical studies.
Following a successful strategy akin to the AREA OFF-1 licence, which saw a farm-out to Chevron announced on 6 March, the company said it aimed to expedite its technical work programme to enhance its existing prospects, identify new opportunities, and attract strategic partners.
The AREA OFF-3 licence's strategic positioning adjacent to significant regional players such as Shell and APA Corporation, coupled with prior seismic activity, underscored its potential.
Notably, the adjacent Amalia prospect, partially within AREA OFF-3, and the entirely contained Morpheus prospect, presented substantial opportunities for exploration and development.
Renewed interest in similar plays triggered by recent discoveries offshore southwest Africa further bolstered the optimism surrounding Uruguay's offshore potential.
With enhanced technical understanding and confidence in the regional petroleum system, Challenger said it was poised to leverage that momentum, accelerating its work programme with a keen eye on introducing strategic partnerships at an early stage.
"Following on from our recently announced farm-out of the AREA OFF-1 licence to Chevron, pending regulatory approvals, we are very pleased to announce that the AREA OFF-3 licence has now been formally signed, cementing Challenger Energy's position as a significant industry participant in Uruguay's offshore," said chief executive officer Eytan Uliel.
"AREA OFF-3 represents a successful expansion of the Company's business in Uruguay, a country that has fast become one of the world's frontier exploration hotspots."
Uliel said the company believed AREA OFF-3 had strong technical merit, offering an "exciting" value-creation opportunity.
"Therefore, like with AREA OFF-1, our immediate strategy for AREA OFF-3 is to commence accelerated technical work, in support of seeking an early farm-out.
"We look forward to keeping shareholders informed of our progress."
At 1259 GMT, shares in Challenger Energy Group were down 1.7% at 0.15p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.