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.