Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) has sold subsidiary Caribbean Rex, which owns the South Erin field in Trinidad, for a total of US$1.5mln including an immediate cash payment of US$1mln.
A further US$0.2mln is due in mid-March 2023 while the buyer has assumed US$0.3mln of third-party liabilities with a three-well drilling obligation at South Erin also part of the deal.
Challenger retains an 18-month option to repurchase a 49% interest in South Erin if the drilling is successful.
Caribbean Rex is being sold to a Trinidadian drilling and oil services company, Challenger said.
Eytan Uliel, Challenger Energy’s chief executive, added: "Through the transaction announced today we get upfront cash, we give up only a small percentage of overall production, we are relieved of various liabilities as well as the cost of a committed drilling campaign, and we retain optionality while someone else drills those wells and funds that cost.
“This is consistent with the structure we adopted for the previously announced transaction relating to the Cory Moruga licence, and is, generally speaking, the model for how we intend to take smaller, non-core assets in Trinidad forward.”