Challenger Energy Group soliciting proposals after securing access to £3.3mln
September 01, 2023 at 06:48 pm IST
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Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) CEO Eytan Uliel speaks to Proactive's Thomas Warner after announcing the establishment of a £3.3 million convertible loan note funding facility with a UK-based alternative asset management and investment firm. Uliel explains the decision to secure a convertible loan note facility, highlighting that conventional equity raises demanded more capital than necessary and would likely have come with significant discounts, which weren't attractive to the company.
In contrast, convertible facilities allow for smaller, more strategic funding, with the potential for a premium conversion. He emphasises the company's strong confidence in their assets, particularly the AREA Offshore License in Uruguay. Recent technical work highlighted the license's substantial resource potential, attracting interest from numerous international oil companies. Uliel reveals what Challenger is looking for in a partner at the Project, which includes the desire to make a deal by year-end, seeking upfront cash with a view to undertaking 3D seismic work in 2024. He suggests this would unlock tremendous value and boost both the company's reputation and share price.
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Proactive UK Ltd
+44 20 7989 0813
uk@proactiveinvestors.com
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Challenger Energy Group PLC is an Isle of Man-based 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 offshore exploration licenses, and in Trinidad and Tobago, where the Company has a number of producing fields and earlier-stage exploration / appraisal projects. It holds two offshore exploration licenses in Uruguay, including AREA OFF-1 and AREA OFF-3 blocks. Together the two blocks represent a total of approximately 28,000 square kilometers (km2)-the offshore acreage holding in Uruguay. It also holds four conjoined exploration licenses offshore The Bahamas. It has a 100% working interest in and is the operator of, the 14,557 km2 AREA-OFF 1 block, offshore Uruguay. It also owns and operates the Goudron field by way of an enhanced production service contract (EPSC) with Heritage Petroleum Company Limited (Heritage).