Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF), in its annual results statement, described a period of “excellent progress”.
“We did what we said we would do and we delivered most of what we promised we would deliver,” chief executive Eytan Uliel said in a statement.
“The highlight event being the farm-out of our AREA OFF-1 block in Uruguay to Chevron, a transaction which is transformational for our company in that it will lead to an exciting program of value-adding activity over the coming 18 months, as well as ensuring that we are fully-funded for the foreseeable future.
“Therefore, as we look to the second half of 2024 and beyond, I believe that our company is in the best position it has been in for many years.”
In terms of its financials, the company reported a $13.4 million loss for the year ended 31 December 2023, comprising mostly non-cash impairments related to its assets in Trinidad which amounted to $12.9 million.
The company noted that its operations in Trinidad are ‘largely self-sustaining’ and that its cash burn from other costs was around $200,000 per month which it described representing the basic costs needed to stay in business as an AIM-listed vehicle.
This level of burn compares favourably with ‘most peers’, it added.
Challenger ended 2023 with close to $1.3 million of cash. In May 2024, it raised £1.5 million through an investment by Charlestown Energy Partners, and, upon completion of the Uruguay farm-out to Chevron it will receive $12.5 million.
Operationally, Challenger focused on maintaining and enhancing its core assets in Trinidad and Tobago, while disposing of non-core assets.
And, in Uruguay, the Chevron farm-out is expected to drive exploration activity.