LONDON (ShareCast) - (Sharecast News) - Challenger Energy said Tuesday that it has completed the first phase of technical work at its AREA OFF-3 block offshore Uruguay, identifying multiple new prospects with potential recoverable resources of up to 980 million barrels of oil.
The AIM-traded company reported aggregate best estimate resources of around 380 million barrels from the two primary prospects, Benteveo and Amalia, with shallow water and reservoir depths expected to support relatively low development costs and commerciality at modest discovery volumes.

Challenger said it had now launched a formal farm-out process for the block, with initial offers expected by year-end and a partner to be selected in early 2026.

"There is strong momentum across our business as we continue to execute our plan - advancing exploration activities in Uruguay, optimising our portfolio, and continuing to execute on our business strategy," said chief executive Eytan Uliel.

"We have completed the first phase of technical work on AREA OFF-3 with encouraging results, and our farm-in process for this block has now commenced."

The company added that AREA OFF-1 remained on track for 3D seismic acquisition in late 2025, pending final environmental permits.

Challenger also confirmed it had completed the sale of its Trinidad and Tobago operations, marking a full exit from the country.

The company said it had received $0.75m in cash to date, with a further $1m due in staged payments by the end of 2027.

As at 30 June, Challenger reported a cash balance of $6.6m, excluding restricted cash and proceeds due from the Trinidad sale.

The company said it remained fully funded for all planned activities into 2027.

"Overall, therefore, the upcoming period promises to be busy and exciting for Challenger Energy - I look forward to updating shareholders as to our continued progress," Uliel added.

At 1506 BST, shares in Challenger Energy Group were flat at 8p.

Reporting by Josh White for Sharecast.com.

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