Challenger Energy seeks debt-free financial footing

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.

() saw its shares fall on Monday as interim financial results confirmed the explorer requires recapitalisation and is working to negotiate creditor settlements.

The company, formerly known as Bahamas Petroleum, said it had US$3mln of cash resources at the end of October and it needs at least US$15mln of new funds to meet its obligations as they fall due over the coming twelve months.

Specifically, results for the six months ended June 30, noted that some US$10.1mln of invoices related to the unsuccessful Perseverance-1 well still needed to be paid, and it had a further US$3.5mln due to various suppliers in Trinidad and Tobago – it said that the latter in-country creditor balances are largely being managed within agreed payment deferrals and payment plans, they are owed by various Trinidadian subsidiaries and are not guaranteed by the company).

A further US$6.5mln is described as ‘representing the full amount of various legacy licencing and other payables in Trinidad and Tobago’ and the company said that they are owed by subsidiaries, not guaranteed by the company, and portions of those amounts are disputed – and some US$4.5mln can be avoided by the forfeiture of certain non-productive assets).

Challenger Energy Group PLC (AIM:CEG) told investors that commercial production rates have been established at the Saffron-2 well, though rates will be maximised by additional clean-up and optimisation work that is presently underway.

The Trinidad-focused company, in a statement, said additionally that the Upper Cruse reservoir units in the well will now also be perforated for production.

Challenger Energy PLC (LON:CEG) said it had “reinvigorated” talks with potential farm-in partners for its offshore acreage in the Southern Territorial Waters off the Bahamas.

It dubbed the area “highly prospective” following post-drill analysis of its first well.

Eytan Uliel, Chief Executive Officer, Challenger Energy Group PLC (AIM:CEG) (Challenger Energy Group PLC (AIM:CEG)) presents the firm’s the new investment case to Proactive Investors.

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.