Challenger signs second exploration license offshore Uruguay

March 11, 2024
Challenger Energy has completed the formal award process for its AREA OFF-3 license offshore Uruguay, first awarded last June under the Open Uruguay Round process.

Offshore staff

MONTEVIDEO, UruguayChallenger Energy has completed the formal award process for its AREA OFF-3 license offshore Uruguay, first awarded last June under the Open Uruguay Round process.

Sign-off followed confirmation of final regulatory approvals. The first exploration period will run for four years from June 7, 2024, through June 6, 2028.

AREA OFF-3 covers 13,252 sq km in water depths from 20 m to 1,000 m, about 100 km from the Uruguayan coast. It has existing 2D and 3D seismic coverage, with two previously identified prospects potentially holding up to ~2 Bbbl of oil and up to ~9 Tcf of gas, according to Challenger.

Initial work obligations call for licensing and reprocessing of 1,000 km of legacy 2D data and conducting two geotechnical studies.

Challenger will pursue a similar strategy to its AREA OFF-1 license that led to last week’s farm-in by Chevron. That means accelerating the technical work program to include additional discretionary work, with the aim of high-grading existing prospects and identifying other candidates and new plays to attract a partner at an early stage.

03.11.2024

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