Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) said talks are set to get underway with the Trinidad energy ministry (MEEI) over an exploration licence for the Guayaguayare block, which was recently awarded to subsidiary CGTL.
Onshore in south-east Trinidad, Guayaguayare is one of the largest onshore exploration and production blocks on the island, Challenger said in a statement, while also being strategically and operationally synergistic with its core production business.
The field contains approximately 65 historic wells, a few of which are active but most not and many of which the company believes can be reactivated at a minimal cost.
Challenger added it will release the terms and conditions of the licence on completion of negotiations with MEEI.
Eytan Uliel, Challenger Energy’s chief executive, commented: “Recognising the strategic and operational synergies available, we submitted only one bid as part of MEEI's 2022 Onshore and Nearshore Competitive Bid Round, for the Guayaguayare licence - one of the largest available onshore licences in Trinidad, and a block that is fully aligned to our strategy.
“We are thus extremely pleased to have now been selected by Cabinet as the party with whom MEEI is to negotiate licence terms, and we look forward to working with MEEI on this process.”