Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) continues to make progress towards a farm-out process for the OFF-3 Block planned for the back end of 2025, as it is gaining a better understanding of the exploration area.
Today, in a stock market statement alongside a summit in London, it highlighted progress of its technical work – with the reprocessing of seismic data now nearly complete.
Randolph Hiscock, Challenger’s managing director for Uruguay, told investors that the updated data provides an improved view of the asset.
"The technical work program for the AREA OFF-3 block is progressing well, with the full depth reprocessing of 1,250km² of AREA OFF-3 seismic data nearly complete,” he said.
“Initial outputs from the ongoing reprocessing are demonstrating a significant uplift in imaging quality and data fidelity."
Once the reprocessed 3D seismic data is received, Challenger Energy plans to move forward with seismic interpretation, analysis, and volumetric assessment.
A preliminary evaluation of pre-existing 3D seismic data has already identified new play concepts and matured several prospects.
In addition, the company has obtained complementary technical studies, including satellite seeps and slick studies, geochemical seabed surveys, and multibeam echosounder seabed surveys.
Altogether, the studies suggest the possible presence of multiple working petroleum systems and highlight areas of interest for further exploration, it highlighted.
Challenger Energy plans to launch the formal farmout process for OFF-3 in the second half of 2025.