Challenger Energy, the Atlantic margin focused energy company, has entered into long-form legal documentation to give effect to the term sheet for an investment in the Company by Charlestown Energy Partners. Accordingly, Charlestown will advance a £1.5m loan to the Company on or about 22 May 2024, on terms and conditions as previously announced.

The Company also advises that the regulatory approval process for the farm-out of a 60% interest in the AREA OFF-1 licence, offshore Uruguay, to a subsidiary of Chevron is progressing in accordance with expectations. Upon closing of the farm-out, Challenger Energy will receive $12.5 million in cash and (subject to prior completion of an agreed share consolidation) the Charlestown loan shall convert into new ordinary shares in the Company, on a basis which will result in Charlestown holding a c. 8.7% shareholding, and thus making Charlestown one of the Company's largest shareholders.

KeyFacts Energy: Challenger Energy Uruguay country profile   l   KeyFacts Energy: Farm-in agreements