In a recent interview with Thomas Warner from Proactive, Eytan Uliel, the chief executive of Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF), discussed the company's strategic moves and future prospects.
The conversation centred around the successful sale of the non-core Cory Moruga asset in Trinidad and the ongoing negotiations for a farm-in deal in Uruguay.
Uliel provided insights into the complexities of these deals and the company's approach to managing its assets and partnerships.
Thomas Warner (TW): Can you summarise the recent sale of your license in Trinidad?
Eytan Uliel (EU): Certainly. We categorised our assets in Trinidad into core and non-core. Cory Moruga, a non-core asset, was sold to Predator Oil & Gas Holdings. The deal required government negotiations to adjust license fees and resolve past dues, taking about 10 months. It's a beneficial deal for Predator, us, and the Trinidad government.
TW: What about the more exciting parts of your business, like the Uruguay farm-in?
EU: The process is progressing well. We've been discussing this for months, but attracting a large multinational oil company to a project in a frontier basin requires time for technical analysis, numerous reviews, and comparative studies.
I have consistently stated since the beginning of the year that we are working towards a farm-in deal by the end of this year, and we are steadily moving forward in this process. It has been formally managed with advisors and discussions with various companies.
Europe is currently a significant area of interest and has rapidly become an exploration hotspot. The timeline may extend as needed, but interest remains high. We are committed and confident in achieving our goals. Once we do, we hope to demonstrate to our followers and shareholders that we have delivered on our promises.
TW: How certain are you about the timeline for the Uruguay deal?
EU: It's not entirely within my control. I can manage our company, our board, and our approach to transactions. However, we are dealing with major oil companies whose transaction methods differ significantly. I understand our shareholders and the market desire quick results, but oil projects are complex.
They require 3D seismic acquisition, followed by exploration and then production wells. These stages take time. We've been working on this for over a year, having formally started our farm-in process in June. I've consistently communicated our goal to finalise a deal before the year's end.
We ask for patience as we work towards embedding a strong partnership in the project, which is crucial for future developments. Let's see how the rest of the year unfolds.