Challenger Energy banks $12.5mln Chevron payment...told investors it has now banked a $12.5 million payment from Chevron thanks to the successful completion of the farm-out of a 60% interest in its AREA OFF-1 block, offshore Uruguay.
Chevron becomes the operator of the project. The American major will now carry 100% of the upcoming project costs - covering Challenger’s share of a planned 3D seismic survey, up to $15 million, and 50% of the costs related to a future exploration well, up to a cap of $20 million.
"Completion of the AREA OFF-1 farmout is a game-changer for Challenger Energy,”
We've achieved an outcome that introduces Chevron, a recognised industry leader, as operator of the block, who will now commence with executing a considerable value-creating work program.
“The cash received and farmout terms will ensure that our company is fully funded for the foreseeable future. And, just as important, this farmout validates our capabilities in terms of securing early access to promising exploration blocks, and progressing them rapidly via high-quality technical work.”
Challenger said it expects to communicate more details about the planned seismic in the "coming months".
Uliel added that Challenger also intends to be in a position to kick off a separate farm-out process for the company’s OFF-3 block by mid-2025.
https://www.paidpromotionalmessages.com/companies/news/1059339/challenger-energy-banks-12-5mln-chevron-payment-as-uruguay-farm-out-completes-1059339.html