Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) said it entered into a formal agreement for the sale of the Cory Moruga licence in Trinidad after the buyer, Predator Oil & Gas Holdings PLC (LSE:PRD), completed due diligence.
Terms of the deal remain unchanged from the original sale agreement announced in December.
Completion requires the consent of the Trinidadian Ministry of Energy and Energy Industries (MEEI) to a revised work programme for Cory Moruga, a revision of future fees for the licence and a settlement/cancellation of past claimed dues.
If the consent is agreed, the transaction will be finalised seven days later. The aim is to get approval by 30 May 2023, said Challenger, with a long stop date of 31 August 2023.
Subject to completion, the transaction will represent a gross potential value proposition to Challenger Energy of up to US$9mln, with up to US$3mln in cash.