REG - Challenger Energy - CORY MORUGA SALE COMPLETION

Challenger EnergyAnnouncement

07/11/2023 07:00

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RNS Number : 5618S  Challenger Energy Group PLC  07 November 2023

7 November 2023

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

 

CORY MORUGA SALE COMPLETION

Further to announcements of 20 December 2022, 8 March 2023, 1 June 2023 and 30
August 2023, Challenger Energy (AIM: CEG), the Caribbean and Americas focused
oil and gas company, with a range of oil production, development, appraisal,
and exploration assets in the region, is pleased to advise that the
transaction for the sale of the Cory Moruga licence, onshore Trinidad, to
Predator Oil & Gas Holdings PLC ("PRD"), was completed on 6 November 2023.

As a consequence of negotiations associated with reaching an agreed position
with the Trinidadian Ministry of Energy and Energy Industries ("MEEI"), CEG
and PRD agreed to vary certain terms of the previously announced agreement
between them, as follows:

·    On completion, PRD paid to CEG US$1 million in cash;

·    A further US$1 million, due to be paid by PRD to CEG six months from
completion, will instead be paid immediately by PRD direct to MEEI, in part
agreed settlement of past dues on the Cory Moruga licence; and

·    A contingent US$1 million payable by PRD to CEG in the event of the
Cory Moruga field achieving certain future production benchmarks, and PRD
granting to CEG a future back-in right to a 25% interest in the Cory Moruga
field at an uplifted multiple of cost base, will no longer apply, reflective
of CEG's contribution to the value of settlement of the balance of past dues
on the Cory Moruga licence, which will be recovered by MEEI via agreed
quarterly arrears payments.

In addition to the cash consideration received, completion of the transaction
will have the effect of extinguishing various liabilities in the CEG accounts
relating to the Cory Moruga licence, amounting to approximately US$4.5
million. Further, in parallel with completion, all historical differences and
disputes between CEG and PRD in relation to the Inniss-Trinity pilot CO(2) EOR
Project have been fully and amicably resolved, pursuant to the terms of the
previously announced Settlement Agreement between CEG and PRD.

 

For further information, please contact:

 

 Challenger Energy Group PLC                     Tel: +44 (0) 1624 647 882

 Eytan Uliel, Chief Executive Officer
 WH Ireland - Nomad and Joint Broker             Tel: +44 (0) 20 7220 1666

 Antonio Bossi / Darshan Patel / Isaac Hooper
 Zeus Capital - Joint Broker                     Tel: +44 (0) 20 3829 5000

 Simon Johnson
 Gneiss Energy Limited - Financial Adviser       Tel: +44 (0) 20 3983 9263

 Jon Fitzpatrick / Paul Weidman / Doug Rycroft
 CAMARCO                                           Tel: +44 (0) 20 3757 4980

 Billy Clegg / Hugo Liddy / Sam Morris

 

Notes to Editors

 

Challenger Energy is a Caribbean and Americas focused oil and gas company,
with a range of oil production, development, appraisal, and exploration assets
in the region. The Company's primary assets are located in Uruguay, where the
Company holds high impact offshore exploration licences, and in Trinidad and
Tobago, where the Company has a number of producing fields and earlier-stage
exploration / appraisal projects.

 

Challenger Energy is quoted on the AIM market of the London Stock Exchange.

 

https://www.cegplc.com (https://www.cegplc.com/)

 

ENDS

 

For further information, please contact:

 

 Challenger Energy Group PLC                     Tel: +44 (0) 1624 647 882

 Eytan Uliel, Chief Executive Officer
 WH Ireland - Nomad and Joint Broker             Tel: +44 (0) 20 7220 1666

 Antonio Bossi / Darshan Patel / Isaac Hooper
 Zeus Capital - Joint Broker                     Tel: +44 (0) 20 3829 5000

 Simon Johnson
 Gneiss Energy Limited - Financial Adviser       Tel: +44 (0) 20 3983 9263

 Jon Fitzpatrick / Paul Weidman / Doug Rycroft
 CAMARCO                                           Tel: +44 (0) 20 3757 4980

 Billy Clegg / Hugo Liddy / Sam Morris

 

Notes to Editors

 

Challenger Energy is a Caribbean and Americas focused oil and gas company,
with a range of oil production, development, appraisal, and exploration assets
in the region. The Company's primary assets are located in Uruguay, where the
Company holds high impact offshore exploration licences, and in Trinidad and
Tobago, where the Company has a number of producing fields and earlier-stage
exploration / appraisal projects.

 

Challenger Energy is quoted on the AIM market of the London Stock Exchange.

 

https://www.cegplc.com (https://www.cegplc.com/)

 

ENDS

 

 

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