Uruguay

Challenger Energy is the holder of two offshore exploration licences in Uruguay- the AREA OFF-1 and AREA OFF-3 blocks. Together the two blocks represent a total of approximately 28,000 km2 – the second largest offshore acreage holding in Uruguay.

Since 2022, and following on from successful exploration drilling in the conjugate margin offshore Southwest Africa, the region has seen a significant increase in licencing and operational activity, and has become an emerging industry ‘hot spot’. All blocks offshore Uruguay have been licenced in the last 24 months, and with the exception of the two licences awarded to CEG, all have been awarded to international oil and gas majors.

Uruguay

AREA OFF-1

  • Challenger Energy has 100% working interest in and is the operator of, the 14,557 km2 AREA-OFF 1 block, offshore Uruguay.
  • AREA OFF-1 was awarded in June 2020, and formally signed on 25 May 2022. The licence has a 30-year tenure with the first four-year exploration period having commenced on 25 August 2022.
  • The initial four-year exploration period work commitment (ending September 2026) is to licence and reprocess 2,000 kms of legacy 2D seismic, and undertake two G&G studies.
  • Given the strong emerging interest in Uruguay, and to facilitate a farm-out, this work program has been expanded and accelerated, with the work largely complete as at June 2023, and with the full program on schedule to be completed in Q3 2023.
  • As a result of this technical work program, three prospects have been identified from a range of play types. Prospects are seismically-derived, supported/ further de-risked by AVO analysis, and their robustness corroborated by geochemical seabed sampling and satellite seep analysis. These are summarized on the left.
  • The overall AREA OFF-1 prospect inventory of approximately 2 billion barrels recoverable resource  and over 4.9 billion barrels in an upside case

 

AREA OFF-3

  • Challenger Energy was awarded the AREA OFF-3 licence, offshore Uruguay, in June 2023. CEG holds a 100% working interest in and is the operator of 13,252 km2 block.
  • There has been considerable prior seismic activity and interest on and adjacent to the OFF-3 block, comprising ~4,000 kms legacy 2D (various vintages) and ~7,000 kms legacy 3D (2012 proprietary acquisition).
  • Based on prior technical work, two material-sized prospects have previously been identified and mapped on AREA OFF-3, as follows
    • Amalia: resource estimate (EUR mmbbl, gross): P10/50/90 (ANCAP) 2,189 / 980 / 392 – the Amalia prospect straddles the boundary with Shell’s AREA OFF-2, with an estimated 25% of Amalia contained within AREA OFF-3; and
    • Morpheus: resource Estimate (EUR TCF, gross): P10/50/90 (ANCAP) – 8.96 / 2.69 / 0.84 – the Morpheus prospect is entirely contained with AREA OFF-3.

 

 

 


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