On 6 March 2024, Challenger Energy (LON:CEG) announced that it had entered into a farmout agreement for the AREA OFF-1 licence in Uruguay with Chevron. Completion of the farmout is subject to required regulatory approvals in Uruguay.
Challenger Energy plc has now announced that on 19 September 2024, the Board of Directors of ANCAP (the Uruguayan state-owned oil company with regulatory responsibility for offshore licences) approved the farmout. Following this approval, and in accordance with Uruguayan legal requirements, the process has progressed to its final stage, which consists of the farmout being notified to the Uruguayan Ministry of Industry, Energy and Mining, and at the same time the requisite Consortium Agreement between the Company and Chevron being submitted to the Uruguayan Ministry of Economy and Finance for registration. Once a 20-day notification period has elapsed and the Consortium Agreement is registered, the farmout can be completed.