Shares in Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) rose 9% after Stifel reaffirmed its 'buy' rating and 50p target price following the company’s full-year results.
Cash levels came in broadly in line with expectations, reinforcing the view that Challenger remains fully funded for its upcoming work programmes.
Stifel said the company is “well positioned for 2025” as it builds on a transformative year that included finalising a farm-out deal with Chevron for AREA OFF-1 and completing initial exploration work on AREA OFF-3.
Looking ahead, Challenger plans to kick off a 3D seismic campaign at AREA OFF-1 and complete technical analysis at AREA OFF-3, setting the stage for a fresh farm-out process.
Stifel expects these developments to continue unlocking value throughout the year and calls 2024 a “pivotal phase” in the company’s strategic evolution.
The shares rose 0.67p to 7.92p.