Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) chief executive Eytan Uliel told investors that heading into 2025 it is focused on advancing exploration activities in Uruguay, optimizing its portfolio, and continuing to execute the business strategy.
In a letter to shareholders, distributed as a press release, the company described 2024 as a “transformative year” and said it is excited for 2025 and beyond.
Providing more specific commentary on the firm’s ambitions in Uruguay, Challenger pointed to the progress in its offshore exploration projects in Uruguay, its robust financial position and key partnership with Chevron (agreed in March last year).
The Chevron deal saw a $12.5 million cash payment to Challenger last year, as well as a commitment to fund a 3D seismic survey and 50% of an initial exploration well.
Currently, 3D data is being reprocessed to refine prospect inventory and pinpoint potential drilling locations.
A further farm-out process is planned to begin in mid-2025.
Elsewhere, Challenger noted ongoing evaluations of its assets in Trinidad and The Bahamas, and it expects findings by mid-2025.
“The funds received on completion of the Chevron farm out means that we are fully funded for the foreseeable future - both in terms of corporate overhead and all planned work programs - with no debt, a healthy cash surplus, and no unfunded commitments or obligations,” Uliel added.
“Thus, as we exit 2024 and head into 2025, I believe our company is in the best financial position it has been in for many years.”