Challenger Energy has initiated the reprocessing of legacy 3D seismic data for the AREA OFF-3 offshore block in Uruguay, with the project expected to conclude by the second quarter of next year. Advanced techniques, including amplitude variation with offset, will be utilised to enhance the data analysis. This approach has previously proven effective in Challenger’s work on the AREA OFF-1 block.
Both Challenger and Chevron, the new operator for AREA OFF-3, aim to refine drilling plans by identifying promising prospects and optimal locations for exploration. The updated seismic data will also play a crucial role in supporting a potential farm-out process scheduled to commence in mid-2025.
To manage costs, the companies have negotiated a unique uplift licensing model with the data vendor. Licensing fees will only be due if the farm-out process is successful. The estimated total expenses for data reprocessing, interpretation, and associated technical activities are projected at $1 million to $1.5 million.
Spanning 13,252 square kilometres, AREA OFF-3 features water depths ranging from 20 to 1,000 metres and is situated 150 kilometres from Uruguay’s coastline. The block’s location is strategically significant, lying near the Brazilian maritime border where major companies such as Petrobras, Shell, and Chevron recently secured licences for neighbouring blocks.
Previous seismic surveys on AREA OFF-3 include approximately 4,000 kilometres of 2D and 7,000 square kilometres of 3D data, collected in 2012 and 2016. Earlier operators, including BP, identified two substantial prospects within the block, named Amalia and Morpheus, situated in water depths of around 250 metres. These findings highlight the potential of AREA OFF-3 as a key site for future exploration.
Challenger Energy’s strategic collaboration with Chevron and the planned farm-out process represent an exciting opportunity to maximise the potential of AREA OFF-3. With advanced seismic techniques and a cost-effective licensing model, the project is well-positioned to attract further investment and exploration activity in Uruguay’s burgeoning offshore energy sector.
Challenger Energy Group plc (LON:CEG) is a Caribbean and Atlantic margin focused oil and gas company, with a range of petroleum assets located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.
