Challenger Energy exits from Trinidad and Tobago

(Sharecast News) - Exploration and development firm Challenger Energy said on Tuesday that it has agreed to sell its remaining businesses in Trinidad and Tobago for $6.0m.

Challenger Energy said the sale, the value of which could increase up to $8.0m under certain future production criteria, represented a complete exit from its operations in Trinidad and Tobago, including from all liabilities and potential exposures associated with those operations.

The AIM-listed firm noted the transaction also constituted "a fundamental change of business" and was contingent upon obtaining shareholder consent at a general meeting.

Chief executive Eytan Uliel said: "As previously advised, for some time, we have been considering the future for our business in Trinidad and Tobago, ultimately concluding that our capital and efforts can be better deployed. Through this transaction we receive both upfront and deferred consideration, we retain an ability to benefit from future upside performance of the assets sold, we remove various liabilities, provisions and exposures from our balance sheet, and we streamline our activities.

"Most importantly, exiting from Trinidad and Tobago allows full focus on our core assets in Uruguay, where we believe the opportunity to create near-term value for our shareholders is considerably greater, as we execute on our busy work programme in both AREA OFF-1 and AREA OFF-3 in 2025. We look forward to updating the market in due course."

As of 1005 GMT, Challenger shares were down 2.05% at 5.06p.

Reporting by Iain Gilbert at Sharecast.com