STRATEGIC INVESTMENT AND FARM-OUT APPROVAL UPDATE

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 Eytan Uliel, Chief Executive Officer	Tel: [phone]
WH Ireland - Nomad and Joint Broker Antonio Bossi / Darshan Patel / Isaac Hooper	Tel: [phone]
Zeus Capital - Joint Broker Simon Johnson	Tel: [phone]
Gneiss Energy Limited - Financial Adviser Jon Fitzpatrick / Paul Weidman / Doug Rycroft	Tel: [phone]
CAMARCO Billy Clegg / Hugo Liddy / Sam Morris	Tel: [phone]

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 

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