Challenger Energy has completed the transfer of a 60% interest in the AREA OFF-1 block offshore Uruguay to Chevron subsidiary Chevron Mexico Finance LLC, Sucursal Uruguay.
All approvals for the transaction have come through from the Uruguayan regulatory authorities.
Challenger has received a cash payment of $12.5 million and retains a 40% interest in the block, with Chevron assuming operatorship.
In addition, Chevron will cover Challenger for its entire share of the costs associated with a 3D seismic campaign on AREA OFF-1, up to a maximum of $15 million. The program could begin in first-quarter 2025.
Thereafter, if Chevron decides to drill an initial exploration well, it will also carry 50% of the Challenger’s share of the associated costs up to $20 million.
