Challenger reports slow progress on Cory Moruga sale

Caribbean and Americas-focussed oil and gas company Challenger Energy updated the market on the sale of the Cory Moruga licence, onshore Trinidad, on Thursday.

The AIM-traded firm had announced on 8 March that it had entered into an agreement with Predator Oil and Gas for the sale of the asset, subject to certain conditions.

One of the key conditions was obtaining the consent of the Trinidadian Ministry of Energy and Energy Industries (MEEI) to a revised work programme proposed by Challenger for Cory Moruga.

Additionally, the MEEI's agreement to revise future fees for the licence and settle or cancel any past claimed dues related to the licence was also required.

Both parties involved in the transaction had agreed to collaborate to obtain the necessary consents and complete the transaction as soon as reasonably possible, aiming for a completion on or before 30 May, with a long stop date of 31 August.

“Since March 2023, the parties have worked together as required, and are engaged in a dialogue with MEEI,” the Challenger board said in its statement.

“This is proceeding well, but the conditions for completion of the transaction have not been satisfied as at 30 May.”

It said the parties remained confident, however, that appropriate consents and agreement with MEEI would be forthcoming, based on recent dialogue with MEEI.

“Accordingly, the parties have mutually agreed to an extension of the 30 May target date for completion of the intended transaction, to coincide with the long-stop date of 31 August.”

At 1354 BST, shares in Challenger Energy Group were down 2.58% at 0.1p.

Reporting by Josh White for Sharecast.com.