Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) told investors that its full attention is on growing its core business in Trinidad, through building production and generating cashflow.
The company, in a statement, said in the current strong oil price environment the Trinidad business unit, which produces around 350 to 400 barrels of oil per day, is profitable.
It highlighted production enhancing work is underway to deliver "near-term upside", boosting production and cashflow, meanwhile, the balance of the company’s 2022 work programme is presently being finalised – it is expected to include infill drilling and enhanced oil recovery (EOR) activities, along with a pilot well in Suriname.
“The higher oil price environment creates an even greater imperative to increase production and maximise every barrel of oil sold, and to that end we are immediately moving forward with some 'low-hanging fruit' operational items,” said chief executive Eytan Uliel.
“The aim of this work is to stabilise and offset natural decline of baseline production, and then add 10% or more of new production, which can be readily monetised.
“Thereafter, we can begin to roll out our 2022 work programme, which will see drilling and EOR deployment across the fields, as we work towards achieving our overall sustainable production growth and cashflow targets. I look forward to keeping shareholders appraised of our progress."