Challenger Power Group PLC stated it has accomplished a transaction to promote a 60 p.c stake in Uruguay’s offshore AREA OFF-1 block, positioned in an space deemed to have comparable geophysical properties with the Orange Basin in Africa, to Chevron Corp. for $12.5 million in money.
Castletown, Isle of Man-based Challenger, by means of CEG Uruguay SA, retains the remaining 50 p.c. “Chevron has assumed operatorship of the block and going ahead will carry one hundred pc of the Firm’s [Challenger’s] share of the prices related to a 3D seismic marketing campaign on AREA OFF-1 (as much as a most of US$15 million internet to Challenger Power)”, Challenger stated in an announcement.
“Thereafter, ought to Chevron determine to drill an preliminary exploration effectively on the AREA-OFF 1 block, Chevron may also carry 50 p.c of the Firm’s share of prices related to that effectively (as much as a most of US$20 million internet to Challenger Power)”.
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A 3D seismic marketing campaign is about to launch within the first half of 2025, Challenger stated.
“Completion of the AREA OFF-1 farmout is a game-changer for Challenger Power”, Challenger chief government Eytan Uliel stated “… The money obtained and farmout phrases will be certain that our Firm is absolutely funded for the foreseeable future.
“And, simply as essential, this farmout validates our capabilities by way of securing early-access to promising exploration blocks, and progressing them quickly through high-quality technical work.
“Within the coming months we count on to speak plans for 3D seismic acquisition on AREA OFF-1, and on the identical time we shall be absolutely engaged in a technical work program for our second Uruguay license, AREA OFF-3, making use of the learnings from work on AREA OFF-1 – our goal is to be ready to kick off a farm-out course of for that block in mid-2025”.
The 2 licenses span 19,000 sq. kilometers (7,335.94 sq. miles). Challenger Power says conjugate margin discoveries in Africa supply hope for comparable potential in Uruguayan performs. “Particularly, the info and enhanced technical understanding offered from latest discoveries offshore Namibia supplies higher confidence that there is perhaps potential for a brand new, prolific petroleum system within the Uruguay offshore, together with CEG’s blocks”, it says on its web site. “This has accelerated licensing, seismic acquisition and drilling throughout the area”.
Exploration success within the Orange Basin, bordered by 4 international locations together with Namibia and South Africa, might clarify the foray into the South American conjugate of the basin, in line with Rystad Power. Discoveries on the Namibian facet of the Orange Basin during the last two years have proven 2.1 billion barrels of oil equal in recoverable reserves, in line with Rystad.
In Brazil’s Pelotas Basin, for which the nation awarded 44 blocks final December together with to Chevron, “[t]he rush by exploration and manufacturing firms to safe positions… will be defined by the potential for replicating exploration success within the Orange Basin, the Pelotas Basin’s conjugate in Africa”, the power intelligence firm stated March 20.
In Argentina’s Norte Basin, Equinor ASA is “testing the South Atlantic conjugate margin reverse the Orange Basin in Namibia”, Rystad wrote individually on July 1.
Chevron can be a participant within the Namibian sector of the Orange Basin, the place it holds an 80 p.c working stake in Petroleum Exploration License (PEL) 90.
Elsewhere offshore Namibia, Sintana Power Inc. introduced April 29 an settlement with companions and Chevron to switch operatorship of PEL82 within the Walvis Basin to the US power big.
To contact the creator, e-mail jov.onsat@rigzone.com
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