After Challenger Energy Group was awarded a block by Ancap in 2020, several companies saw Uruguay as attractive.
After Challenger Energy Groupan oil company based in isle of manthe offshore exploitation block will be awarded OFF-1 area by ancap In May 2020, several world oil companies began to increase their interest in the Uruguayan coasts.
As reported by Oil & Gas Magazine, on a geological level, the shallow water area where Challenger Energy Group began the process of assigning rights to explore the block would be analogous to the offshore of Namibiawhere Shell and TotalEnergies discovered hydrocarbons in the Cretaceous for more than 1,000 million barrels.
About this, the Isle of Man company explained that, geologically, the area exhibits the same characteristics in the petroleum systems, and in the source rock of Aptian age in the existing 2D seismic. At that time, the resource potential was estimated at more than 1.5 billion barrels.
Uruguay’s OFF-1 block would have 6.5 billion barrels of oil
After completing the volumetric evaluation of the three main prospects in the OFF-1 block (Anapero, Lenteja and Teru Teru), it is indicated that total oil in place is about 6.5 billion barrels.
From the oil company, which has already begun the formal transfer process through an advisor, they claim to have received “great interest” from industry players.
eytan ulielCEO of Challenger Energy, said: “We remain encouraged by the opportunity represented by our Area OFF-1 license in Uruguay, as it is”a world-class acreage with enormous resource potential“, which “has become a global exploration hotspot.”
Challenger Energy Group notes that the farmout process is structured to meet its business objective, which is to complete such a transaction before the end of 2023. The company believes that adding strategic partners during 2023 could accelerate the valuation of the block.
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Image: cegplc.com
Source: Ambito
