Page 14 - LatAmOil Week 10 2023

LatAmOil NEWS IN BRIEF LatAmOil

INVESTMENT
Challenger Energy

provides update on

sale of Cory Moruga

Challenger Energy, the Caribbean- and Amer-
icas-focused oil and gas company, with oil pro-
duction, appraisal, development and exploration
assets across the region, has updated that further
to entry into a binding term sheet with Preda-
tor Oil & Gas Holdings and relevant subsidiary
entities as announced on December 20, 2022,
Predator has now completed all confirmatory
due diligence and the Company and Predator
have entered into fully-termed long-form legal
documentation.
The terms remain unchanged from those cash payment, payable once the Cory Moruga transactions as part of a wider analysis of Petro-
previously announced on 20 December 2022, field production first reaches 100 barrels per bras’ ongoing divestment programme initiated
being: day (bpd) of oil; the option-value embedded by the Ministry of Mines and Energy (MME) in
Predator will acquire 100% of the issued in the retained back-in right; the removal of all Brazil.
share capital of T-Rex Trinidad Ltd, an indi- ongoing T-Rex financial obligations, and the MME has requested a suspension of ongoing
rectly wholly-owned subsidiary of the Com- elimination of all T-Rex associated liabilities sales of assets for 90 days without putting Petro-
pany that holds the Company’s 83.8% interest from the Challenger Energy balance sheet, as bras’ interests at risk, according to a Petrobras
in, and is the operator of, the Cory Moruga well as the elimination of all contingent and filing with the U.S. Securities and Exchange
licence; the Company will retain the option in potential liabilities associated with the Cory Commission which includes a letter from
the future to repurchase 25% of Predator’s share Moruga licence, whether crystalised or not; the the Brazilian Ministry of Mines and Energy
in T-Rex on an agreed basis; CEG and Predator settlement of any outstanding loan amounts (MME) dated February 28, 2023.
have established a collaboration in relation to in respect of the Inniss-Trinity CO2 EOR pilot In June 2022, BW Energy signed an agree-
CO2 enhanced oil recovery (EOR) activities project (recognising that absent a settlement ment to acquire 100% working interest (WI) in
and projects in other areas in Trinidad; and between the parties, such amounts would be the Golfinho and Camarupim Clusters and 65%
the Company and Predator have agreed to a recoverable only from incremental production WI in the BM-ES-23 block offshore Brazil from
mutual settlement and discharge of all disputes from the Inniss-Trinity CO2 EOR pilot project Petrobras. BW Energy will be the operator in
and claims in relation to the Inniss-Trinity CO2 area); and a full and final mutual settlement in all the concessions. The Company also agreed
EOR pilot project. respect of all disputes and claims between the to acquire the FPSO Cidade de Vitoria, produc-
Completion of the transaction is condi- parties in relation to the Inniss-Trinity CO2 ing on the Golfinho field, from Saipem. Both
tional on consent of the Trinidadian Ministry EOR pilot. transactions, subject to fulfilment of waiver of
of Energy and Energy Industries (MEEI) to a The Transaction, in addition to the trans- conditions precedent, were expected to close in
revised work programme for the Cory Moruga action involving Caribbean-Rex Limited as in the first quarter of 2023.
licence proposed by Predator, as well as agree- announced on February 14, 2023, is in line with It is anticipated that that the MME’s gen-
ment of MEEI to a revision of future fees for the the Company’s strategy in Trinidad and Tobago eral suspension request may result in a delay
Cory Moruga licence and a settlement/cancella- of seeking to monetise assets not in the core area to the closing of the transactions. BW Energy
tion of past claimed dues pertaining to the Cory of operation, so as to maximise cash and offset will keep the market updated on developments
Moruga licence. Completion of the Transaction risk and work programme commitments, but at relating to the suspension request when and if
will occur 7 days after satisfaction of this condi- the same time retain upside exposure. appropriate.
tion. The parties have agreed to work together Further announcements will be made as
to secure the required consents and agreements appropriate. BW Energy, 02 March 2023
with MEEI and thus achieve completion as soon Challenger Energy Group, 08 March 2023
as reasonably practicable on or before May 30,
2023, with a long stop date of August 31, 2023. Golfinho transactions PROJECTS & COMPANIES
Subject to completion, the Transaction will
represent a gross potential value proposition to impacted by temporary Touchstone announces
Challenger Energy of up to $9mn (as estimated
by the parties to the Transaction), comprising: suspension of Petrobras Royston-1X reaches TD
$2.0mn payable to the Company by Preda-
tor in cash, in instalments as follows: (i) $1mn divestment programme Touchstone Exploration has completed drill-
upon completion of the transaction, and (ii) ing the Royston-1X exploration well and has
a further $1mn on the date that is six months BW Energy has been informed by Petrobras of a announced that the well encountered substantial
after completion; a further $1mn conditional review of the Golfinho and Camarupim Clusters sands in the targeted Herrera Formation.

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