Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) CEO Eytan Uliel talked with Proactive's Stephen Gunnion about the company’s significant milestones in 2024 and its outlook for 2025.
Uliel highlighted the company’s progress with its OFF-1 and OFF-3 blocks in Uruguay. In November 2024, Challenger successfully closed its farm-out agreement with Chevron, securing a 40% retained interest while Chevron took a 60% stake as operator. The deal included a $12.5 million cash payment and Chevron covering the full cost of a 3D seismic work program. Uliel emphasized the importance of maintaining a large interest, noting that this provides flexibility to monetize stakes in the future.
Discussing the company’s position, Uliel stated: “We ended 2024 in the best financial position we’ve been in for quite some time. We have an absolutely clean balance sheet, no debts, and a healthy cash surplus.”
Looking ahead to 2025, Challenger aims to progress its seismic work on OFF-1 with Chevron, leading to a potential drilling decision in 2026. The company is also preparing for a farm-out process for OFF-3, replicating the success of OFF-1. Uliel noted Uruguay’s strong regulatory and business environment, calling it one of the best jurisdictions for oil and gas exploration.
For investors, Uliel presented a strong case, citing Challenger’s “prime assets, unique market position, and current undervaluation.” The company sees significant upside potential, especially if drilling leads to discoveries.
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