Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) farm-out to Chevron in Uruguay is advancing after the deal received a key approval.
The company, in a statement, said that on 19 September the proposed transaction was approved by ANCAP, the Uruguayan state-owned oil company with regulatory responsibility for offshore licences.
It now awaits the final regulatory steps – notification of the deal to the Uruguayan Ministry of Industry, Energy and Mining, and filing of the agreement with the Uruguayan Ministry of Economy and Finance for registration.
That final step includes a 20-day notification period.
Challenger chief executive Eytan Uliel told investors that the company expect the transaction to complete in four to eight weeks.
"The farmout of our AREA OFF-1 block in Uruguay is transformational for Challenger Energy,” he said in a statement.
“Since entering into the farmout agreement we have been diligently working through various regulatory approval processes, culminating in ANCAP now having formally approved the farmout, which is the key approval required.
“We do not anticipate that remaining procedural processes will take long to complete, so we expect full completion of the farmout within the next four to eight weeks.”
Uliel added: “This in turn will enable Chevron, as incoming operator of the block, to move forward with 3D seismic acquisition on an accelerated basis, targeting commencement in early 2025.
“The coming months will thus be a busy and exciting time for our Company - we will keep shareholders advised of continued progress."