Seismic reprocessing for OFF-3 started ahead of farm out prohttps://www.paidpromotionalmessages.com.au/companies/news/1059779/challenger-energy-starts-reprocessing-seismic-for-off-3-ahead-of-new-farm-out-process-1059779.html
Challenger told investors it had begun a seismic reprocessing work programme for its AREA OFF-3 block offshore Uruguay.
It follows a recent deal to gain access to historic seismic data. The explorer expects initial findings by the end of 2024, with full completion slated for the second quarter of 2025.
Challenger said it anticipates this work will mature AREA OFF-3’s data set and potentially accelerate the identification of viable prospects ahead of a farmout process, targeted for mid-2025.
"Over the last few months, while focussing on finalizing the farmout for our AREA OFF-1 licence in Uruguay, we also have been preparing the initial AREA OFF-3 work program, centred on reprocessing of existing 3D seismic in support of defining the block's prospect and lead inventory and possible well locations, which we believe will be the key inputs into the farmout process we are aiming to begin in mid-2025,” chief executive Eytan Uliel said in a statement.
“Following the close of the AREA OFF-1 farmout, we have now moved to immediately accelerate work on AREA OFF-3, given our view that the block has significant exploration upside and scope and, like AREA OFF-1, presents an exciting near-term value-creation opportunity.
“We will keep shareholders informed of our progress".
The AREA OFF-3 work program is structured to defer licensing fees for the seismic data until a farmout deal is concluded, the company highlighted.
It noted that costs for the full programme are projected to range from $1.0 million to $1.5 million.
AREA OFF-3 covers some 13,252 square kilometres, in water depths between 20 and 1,000 meters.
The block shares borders with Shell’s AREA OFF-2 and the Brazilian maritime area where Chevron, Shell, and other major companies hold recently acquired licenses.