Challenger Energy Group PLC shares were up on Wednesday, after it said talks are set to start with the Trinidad energy ministry over an exploration licence for the Guayaguayare block.

The Caribbean and America-focused oil and gas company’s shares were up 7.1% to 0.10 pence each in London on Wednesday morning.

Challenger said its wholly owned Trinidadian subsidiary CEG Goudron Trinidad Ltd has been notified by the Trinidad & Tobago Ministry of Energy and Energy Industries.

It added that the government of Trinidad & Tobago has authorized the Trinidad energy ministry to enter into negotiations with CEG Goudron for the grant of an exploration & production licence for the Guayaguayare block.

The Guayaguayare block is located onshore in south-east Trinidad.

Challenger said it is ‘one of the largest onshore exploration and production blocks in Trinidad’ It is about 306 kilometres squared.

It noted that it is ‘strategically and operationally synergistic’ with its core Trinidadian production business, as the licence wholly encloses Challenger’s Goudron licence area, and is adjacent to the its Trinity-Inniss licence area.

Challenger added that it will release the terms and conditions of the license on completion of negotiations.

Chief Executive Officer Eytan Uliel said: ‘Late last year, we advised of our Trinidad strategic focus, which was to concentrate on the south-east of Trinidad, where we have most of our existing production and operations, and thus a competitive advantage. Recognising the strategic and operational synergies available, we submitted only one bid as part of MEEI’s 2022 Onshore and Nearshore Competitive Bid Round, for the Guayaguayare licence - one of the largest available onshore licences in Trinidad, and a block that is fully aligned to our strategy.’

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