REG - Challenger Energy - STRATEGIC INVESTMENT AND FARM-OUT APPROVAL UPDATE

Challenger EnergyAnnouncement

07/05/2024 07:15

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RNS Number : 3376N  Challenger Energy Group PLC  07 May 2024

7 May 2024

Challenger Energy Group PLC

 

("Challenger Energy" or the "Company")

 

UPDATE ON STRATEGIC INVESTMENT BY CHARLESTOWN ENERGY

AND CHEVRON FARM-OUT APPROVAL PROCESS

Challenger Energy (AIM: CEG), the Atlantic margin focused energy company, is
pleased to announce (as foreshadowed in the Company's RNS of 18 April 2024)
that it has entered into long-form legal documentation to give effect to the
term sheet for an investment in the Company by Charlestown Energy Partners LLC
(together with its affiliates and assignees "Charlestown"). Accordingly,
Charlestown will advance a £1.5m loan to the Company on or about 22 May 2024,
on terms and conditions as previously announced.

 

The Company also advises that the regulatory approval process for the farm-out
of a 60% interest in the AREA OFF-1 licence, offshore Uruguay, to a subsidiary
of Chevron is progressing in accordance with expectations (refer to the
Company's RNS of 6 March 2024). Upon closing of the farm-out, Challenger
Energy will receive $12.5 million in cash and (subject to prior completion of
an agreed share consolidation) the Charlestown loan shall convert into new
ordinary shares in the Company, on a basis which will result in Charlestown
holding a c. 8.7% shareholding, and thus making Charlestown one of the
Company's largest shareholders.

 

Further announcements will be made as appropriate.

 

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 an Atlantic-margin focussed energy company, with
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. 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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