Challenger Energy Group PLC on Monday said it bid for the Area Off-3 licence offshore Uruguay, which it expects to receive in three to four weeks.
Caribbean and America-focused oil and gas company said the licence is the sole remaining available block offshore Uruguay, with all other offshore exploration licences held by larger energy companies such as Shell PLC, Texas-based APA Corp’s subsidiary Apache Oil Corp, and Argentina’s state oil company YPF SA.
The area of the licence is 13,252 square kilometres, which would increase Challenger Energy’s Uruguay acreage holdings to around 28,000 sq km. It would make the company the second largest offshore acreage holder in Uruguay, behind Shell.
Challenger Energy expects formal award of the licence in three to four weeks from Monday.
Chief Executive Officer Eytan Uliel said: ‘Strategically, the award of this licence will cement CEG’s position as a significant participant in Uruguay, a country that has fast become one of the world’s frontier exploration hotspots. At the same time, our bid for the Area Off-3 block demonstrated the same disciplined and opportunistic approach we have taken in the past: acting strategically and nimbly to secure large and promising acreage, yet with low-cost work obligations, discretionary expenditure phasing, and no new seismic acquisition or drilling commitments.’
Challenger Energy shares were 4.0% higher at 0.11 pence each in London on Monday morning.
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