Challenger Energy, the Caribbean and Americas focused oil and gas company, with a range of oil production, development, appraisal, and exploration assets, is pleased to advise that CEG Goudron Trinidad Limited ("CGTL"), a wholly owned Trinidadian subsidiary, has been notified by the Trinidad and Tobago Ministry of Energy and Energy Industries ("MEEI") that the Government of Trinidad and Tobago has authorized MEEI to enter into negotiations with CGTL for the grant of an Exploration and Production (Public Petroleum Rights) Licence for the Guayaguayare block (the "Licence"), following a successful bid for that Licence by CGTL.

The Guayaguayare block is located onshore in south-east Trinidad. It is one of the largest onshore exploration and production blocks in Trinidad (approximately 306 km2), and is strategically and operationally synergistic with the Company's core Trinidadian production business, in that the Licence wholly encloses the Company's Goudron licence area, and is adjacent to the Company's Trinity-Inniss licence area (refer to the Appendix to this RNS).

The Company considers the Guayaguayare block to be highly prospective, being amongst the largest remaining underexplored / undrained contiguous onshore areas in Trinidad. Additionally, the block contains approximately 65 historic wells, a few of which are active, but most of which are currently shut-in / suspended / abandoned, and many of which the Company believes can be reactivated and serviced from existing operations, thus offering the opportunity for near-term production uplift at minimal incremental cost.

The Company will advise the terms and conditions of the Licence, including the Company's agreed work obligations, on completion of negotiations with MEEI.

Eytan Uliel, Chief Executive Officer of Challenger Energy, said:
"Late last year, we advised of our Trinidad strategic focus, which was to concentrate on the south-east of Trinidad, where we have most of our existing production and operations, and thus a competitive advantage. Recognising the strategic and operational synergies available, we submitted only one bid as part of MEEI's 2022 Onshore and Nearshore Competitive Bid Round, for the Guayaguayare licence - one of the largest available onshore licences in Trinidad, and a block that is fully aligned to our strategy. We are thus extremely pleased to have now been selected by Cabinet as the party with whom MEEI is to negotiate licence terms, and we look forward to working with MEEI on this process. We are enthusiastic about the prospects this block offers for CEG in Trinidad - both in terms of near-term production gains, and long-term exploration upside."

KeyFacts Energy: Challenger Energy Trinidad and Tobago country profile