Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) has established a £3.3 million convertible loan note funding facility with a UK-based alternative asset management and investment firm.
The loan is intended to support business development, primarily for the accelerated technical work programs in Uruguay, as well as business development opportunities in Trinidad.
In a corporate update, Challenger explained that the new loan will ensure that the group will be able to meet its capital requirements until at least the second half of 2024, “regardless of the amount and timing of any future potential inflows”.
Challenger has already drawn down £550,000 on the facility
Elsewhere in the corporate update, chief executive Eytan Uliel noted his intention to purchase an additional 60 million shares in the company, bringing his total shareholding to 6%.
“Personally, I am excited with how Challenger Energy is now poised - a honed portfolio, a clear focus on those assets which are world-class and have the potential to deliver a major value uplift in the near term, and the financial flexibility to take disciplined portfolio decisions when opportunity presents,” commented Uliel.
“Day by day I believe we are creating intrinsic value which I strongly believe will ultimately be rewarded, and which is why I am increasing my personal holding in the company at this time. I look forward to sharing news of continued progress with fellow shareholders over the coming months."
Challenger also commented on the Cory Moruga asset sale extension, noting that “the parties have progressed discussions seeking to re-establish partnering arrangements in relation to other assets, including in particular a potential joint-venture or acquisition of the Inniss-Trinity field”.
The onshore Trinidad deal with Predator Oil, in which Challenger agreed to sell its 83.3% interest in the Cory Moruga licence to Predator, was first extended on 1 June 2023.