Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) says its Uruguay offshore licences are on schedule, with environmental approvals expected to pave the way for three-dimensional seismic surveys over Area OFF-1 in the fourth quarter of 2025 and a farm-out process for Area OFF-3 due to open in September next year.
Seismic surveying, a technique that sends sound waves into the earth to map subsurface rock formations, is a critical step before any drilling decision.
Challenger, which holds a 40% stake in Area OFF-1 alongside operator Chevron, reports that Uruguay’s Ministry of Environment has advanced public consultations for the requisite permits.
Separate sessions were held earlier this year for two vendors, TGS in February and Viridian in May, with a final consultation for remaining applicants pencilled in for late July.
Once consultations conclude, permits should follow in August or September, allowing the planned campaign to start in Q4 2025.
Reprocessing of some 1,250 square kilometres of legacy three-dimensional seismic data on Area OFF-3, wholly owned and operated by Challenger, has also wrapped up, together with a suite of geochemical studies including satellite seep detection, seabed micro-seepage analysis and a multibeam echosounder survey.
The group has begun a technical evaluation, using mapping and interpretation to establish a portfolio of leads.
Early work has identified several “amplitude-supported prospects” (zones where reflections suggest possible hydrocarbons), one of which, dubbed “Benteveo”, lies partly beyond the existing data coverage.
Challenger has licensed additional data to complete its assessment, which it says will take around six to eight weeks.
Eytan Uliel, chief executive, said: “Our aim is to provide a technical update ahead of commencing a farm-out process as planned, later this year.”