By Abigail Townsend
Date: Wednesday 06 Mar 2024
LONDON (ShareCast) - (Sharecast News) - Shares in Challenger Energy Group soared on Wednesday, after the AIM minnow struck a deal with US oil major Chevron.
The Caribbean and Americas-focused energy firm said that its Uruguayan subsidiary - CEG Uruguay - had entered into a farm-out agreement with Chevron.
Under the terms of the deal, Chevron will acquire a 60% participating interest in the Area Off-1 block around 100km off the cost of Uruguay.
The oil major will assume ownership, while CEG Uruguay retains a 40% non-operating interest.
Chevron will pay $12.5m, which will be used to support the further development of the business, Challenger Energy noted.
As at 1245 GMT, shares in Challenger Energy had soared 60% to 0.2p.
Eytan Uliel, chief executive, said: "We firmly believe that Area Off-1 holds enormous potential and this farm-out is a strong validation of the high-quality technical work CEG has done to date.
"Our stated strategy was to introduce a larger industry player as operating partner, with a view to rapidly progressing the block via an accelerated 3D seismic campaign followed by, we hope, exploration well drilling."
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Currency | US Dollars |
Share Price | $ 153.19 |
Change Today | $ 0.62 |
% Change | 0.41 % |
52 Week High | $171.04 |
52 Week Low | $141.77 |
Volume | 6,321,386 |
Shares Issued | 1,865.65m |
Market Cap | $285,799m |
RiskGrade | 160 |
Strong Buy | 5 |
Buy | 11 |
Neutral | 7 |
Sell | 0 |
Strong Sell | 0 |
Total | 23 |
Time | Volume / Share Price |
16:03 | 1,240,634 @ $153.19 |
15:59 | 100 @ $153.28 |
15:59 | 149 @ $153.28 |
15:59 | 100 @ $153.28 |
15:59 | 131 @ $153.28 |
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