WTI (July) $68.04 -11c, Brent (Aug) $69.36 -41c, Diff -$1.32 -30c
USNG (July) $3.49 -2c, UKNG (July) 91.0p +5.37p, TTF (July) €37.3 +€37.3 +€1.05

Oil price

With no news yesterday from our companies I had a decent piece prepared on the oil price which in its own way was indeed made history by the overnight news. One interesting point would have been that the UKMTO, the UK maritime trade organisation had issued an advisory re increased tensions in the Middle East which could lead to escalation of military activity in the Arabian Gulf, Gulf of Oman and the Straits of Hormuz. Well done to them as last night, as we all now know Israel launched attacks on Iranian nuclear facilities.

Today oil is up just $5, at one stage it was a fair bit more but whilst this sort of action doesn’t help relationships in the Gulf most commentators feel that although more attacks are inevitable actual closure of the straits is highly unlikely. But, the scheduled peace talks in Oman on Sunday are off…

The point is that whilst Iran launched off volleys of drones at Israel in retaliation it lacks the friends it used to be able to call on in such circumstances. Without the Hezbollah, Assad and the Houthis Israel had a clear run into Iran through US controlled Iraq air space. 

All this puts things like the inventory stats into perspective, crude drew much more than forecast although products have built by more than expected at this time of year. Refinery runs are very high of course at 94.3% indicating that despite being at the start of the driving season demand is down. 

Diversified Energy Company

DEC has had a number of influences recently and a number of factors have been at work, but overall with the shares around 32% off the lows the positives have outweighed the negatives. With the share buy-back continuing to benefit the rating the shares retain their premium in the sector. 

And on that subject the fact that the company is listed in the US on the NYSE is also a positive, particularly as the share weighting in the Russell 2000 index’s will be increasing material with the annual rebalance at the end of June.  It should be also noted that when DEC was added to the index it’s market cap was c.$675m and is now c.$1.1bn.

On the counterbalance there are minor concerns about the proposed US tax which has been thought to be negative to UK domiciled firms operating in the US energy sector and in its usual way the market is applying a rather broad brush approach to the issue. 

In speaking to the company today I ascertained a couple of key factors, firstly DEC is headquartered in  the US and importantly, consequently a domestic US taxpayer. More important perhaps is that DEC will no longer be a Foreign Private Issuer based on the fact that currently US its 72%and is may be scheduling to a US Primary listing at the end of this year, accordingly DEC will not be hit by this Bill. 

I expect the positive attributes to outweigh any perceived negative, I don’t think that this ‘Revenge Bill’ was ever designed to hit the likes of DEC and accordingly with the current international situation providing high energy prices the background is actually rather accommodating to the company.

Arrow Exploration Corp

Arrow Exploration Corp., the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to announce that, the TSX Venture Exchange (the “Exchange”) has approved the Company’s notice of its intention to make a Normal Course Issuer Bid (the “Bid”) to commence a share buyback programme (the “Share Buyback Programme”).

The notice provides that the Company may purchase up to 14,293,217 Common Shares in the Company (“Shares”), being 5% of the Company’s Public Float (as that term is defined in the policies of the Exchange).

The Share Buyback Programme will be for on market purchases of up to £2.7 million worth of Shares (the “Maximum Monetary Amount”) carried out on the London Stock Exchange and any other UK recognised investment exchange and in accordance with certain pre-set parameters (the “Share Buyback”).

Any purchases of Shares by the Company in relation to this announcement will be effected within certain pre-set parameters and in accordance with (and subject to the limits prescribed by), the Exchange, the Market Abuse Regulation 596/2014 (as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018) (the “Regulations”) and the AIM Rules for Companies (the “AIM Rules”).

Canaccord Genuity Limited (“Canaccord Genuity”) will purchase the Shares under the Share Buyback Programme on behalf of the Company. The Company will provide instructions to buy back Shares as and when its management believes that, at the time of instruction, these repurchases are at or below the Board’s view of the intrinsic value of the Company and be in the best interests of shareholders generally. From time to time, the Company may also provide one or more time-limited, irrevocable, non-discretionary instructions to Canaccord Genuity to make trading decisions and repurchase Shares within those instructions independently of the Company. Any purchases of shares made during closed periods pursuant to the Share Buyback Programme shall be made independently of and uninfluenced by the Company.

Further details of the Share Buyback Programme

The purpose of the Share Buyback Programme is to return capital to those shareholders wishing to participate in the Share Buyback.

• The Share Buyback will be financed from existing cash resources.
• The Share Buyback shall be done in compliance with the Business Corporations Act (Alberta).
• The aggregate number of Shares acquired by the Company pursuant to the Share buyback shall not exceed the volume limitations imposed by the Exchange.
• The maximum price (exclusive of expenses) which may be paid for each Share is an amount equal to the price of the last independent trade of any Share.
• It is intended that the Share Buyback Programme will, insofar as is possible, be conducted in accordance with the safe harbour parameters of MAR (as defined below); however, given the limited liquidity in the Shares, the Share Buyback may on any given trading day represent a significant proportion of the daily trading volume in the Shares on the London Stock Exchange and could exceed 25 per cent of the average daily trading volume. Accordingly, the Group may not benefit from the exemption contained in Article 5(1) in the UK version of the Market Abuse Regulations (Regulation (EU) No 596/2014) as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”).
• The Share Buyback is capable of being commenced from the date of this announcement and is anticipated to continue until the number of Shares equal to the Maximum Monetary Amount have been purchased under the Share Buyback or the process is terminated or paused.
• The purchased Shares will be cancelled by the Company.
• Share buybacks will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. There is no certainty that any buybacks will be completed. The Share Buyback may be paused at any time if deemed appropriate by the Company with respect to market conditions.
• Purchases may continue under the Share Buyback Programme during any closed period to which the Company is subject provided an irrevocable, non-discretionary instruction to Canaccord Genuity has been made prior to entering a closed period. The Company confirms it is not in a close period and currently has no other unpublished inside information.
• There is no guarantee that the Share Buyback Programme will be implemented in full or that any purchases will be made. The Company reserves the right to bring a halt to the Share Buyback Programme under circumstances that it deems to be appropriate and in accordance with relevant law and regulation.
• As at 31 December 2024, the Company’s total issued share capital consisted of 285,864,348 Shares, with one voting right per share. As at this date, the Company does not hold any Shares in treasury. Therefore, the total number of voting rights in the Group is 285,864,348.
• The Company will make further regulatory announcements in respect of repurchases of Shares as required by applicable laws and regulations, including the TSXV, MAR and the AIM Rules.
• Any market purchase of Shares pursuant to the Share Buyback will be announced no later than 7.30am on the business day following the day on which the purchase occurred.

The Board has determined Share Buyback Programme is in the best interests of the Company and its shareholders and is expected to commence over the coming days.

Marshall Abbott, CEO of Arrow Exploration Corp., commented:
“Arrow is pleased to put in place the share buyback program for 2025.  We believe it is the right thing to do for Arrow and our shareholders, and it reflects the confidence we have in the 2025 program and the future of Arrow.”

“The Company will begin buying back and cancelling shares in the coming months.  The market will be updated at each share purchase to make the program as transparent as possible.”

This is a good move by Arrow and whilst rarely a complete solution it will help in the short term whilst the market is not helping matters. The situation at Arrow is hugely positive, the programme continues to be very successful and now the company has a second rig will up the pace of its drilling. I expect the cash to grow and the tax efficient buy back be very helpful. Cant wait to get Marshall Abbott in front of the TV camera…

Challenger Energy Group

Challenger has announced its audited Annual Results for the year ended 31 December 2024.

 The 2024 Annual Report and Financial Statements will be posted to shareholders by 18 June 2025 along with the notice of the Company’s Annual General Meeting to be held on 24 July 2025 at 11.00 a.m. British Summer Time at The Engine House, Alexandra Road, Castletown, Isle of Man IM9 1TG.

 The 2024 Annual Report and Financial Statements are set out in full below and are also available on the Company’s website https://www.cegplc.com/.

This is my fifth report to you, the owners of the Company, in my capacity as Chief Executive Officer.

The 2024 period under review was a transformational one for Challenger Energy. Highlights were that we farmed out the AREA OFF-1 block in Uruguay to Chevron, we advanced our second Uruguay block (AREA OFF-3), we made progress on achieving value from our other assets, and we continued our efforts to reshape the Company in a corporate sense.

As we look to the second half of 2025 and beyond, I am more convinced than ever that we are at an inflection point. Financially and operationally, we are in the best position we have been in for many years. The hard work of the last few years means that over the coming 12-24 months a significant value-creation opportunity lies ahead of us. Details are provided in my commentary below.

URUGUAY

What a difference a few years can make in the frontier hydrocarbon exploration industry!

Shareholders will recall that Challenger Energy first started doing business in Uruguay in May 2020, when we secured the AREA OFF-1 licence, offshore Uruguay. At that time the Covid-19 pandemic was engulfing the world, and Uruguay was not yet on the global industry’s radar. This meant that when we decided to enter Uruguay, we were the sole licence holder in that country.

In early 2022, very large, globally relevant discoveries were made by supermajors (TotalEnergies and Shell) from exploration wells drilled offshore Namibia (and subsequently multiple additional discoveries have followed, including most notably GALP Energia’s Mopane discovery and Rhino Resources’ recent Capricornus well). The Orange Basin in Namibia, which is where these discoveries have been made, is in geological terms the conjugate margin to offshore Uruguay. This is a fact of enormous significance to those active in the industry, in that the data emerging from the discoveries in Namibia significantly increases the likelihood of the presence of oil-producing source rock offshore Uruguay.

For this reason, the exploration success in Namibia saw an almost instant surge in industry interest to secure offshore licences in Uruguay and the surrounding region. Activity commenced on long dormant blocks in Argentina, and in late 2023 a number of majors picked up multiple blocks in a Brazil bid round (with another scheduled for later this year).

In the specific case of Uruguay, the impact was even more pronounced: by the end of 2023, 100% of Uruguay’s offshore blocks had been licensed, with Challenger Energy holding two of the seven available blocks, and the other five blocks having been awarded to much larger industry players. That is to say, in under two years (and unique to anywhere else in the world) Uruguay went from being almost entirely unlicensed and unheralded, to being fully licensed and, apart from Challenger Energy, only to industry ‘heavyweights’ who had made sizeable work programme commitments in order to secure those licences.

It is thus no exaggeration to say that offshore Uruguay has, in the past few years, emerged as a global exploration “hotspot”. And within that “hotspot”, our Company has emerged not only as one of the largest acreage-holders, but also as the only junior E&P (exploration and production) company with any position in the region, with two world class assets and a growing prospect inventory.

Consequently, as shareholders are aware, through 2022 and 2023 we rapidly shifted our strategy, to prioritize Uruguay so as to meet the enormous industry interest that we could see was building. The full effect of this shift became evident in 2024, the period under review, when our assets in Uruguay unambiguously became the central focus of Challenger Energy’s business.

AREA OFF-1

As I noted in the last Annual Report, through the course of 2023 Challenger Energy had undertaken a high-quality technical work programme for AREA OFF-1, the result of which was the identification of three primary prospects in the licence area. In aggregate, we delineated a robust prospect inventory of approximately 2 billion barrels (Pmean) and up to 5 billion barrels (P10), thus establishing that AREA OFF-1 is a world-class asset.

In 2023 we had also commenced a formal, adviser-led farmout process, with the objective of securing a partner for AREA OFF-1. Our aim was to introduce a respected industry participant who could provide the further expertise and capital needed to rapidly take the block forward to 3D seismic acquisition and, ultimately, exploration well drilling.

The results of our efforts – technical and commercial – became evident during the period under review, when in March 2024 we announced a farmout agreement with Chevron. A series of regulatory approvals followed, which took most of 2024 to finalise, but on 28th October 2024 the transaction with Chevron was completed. This represented the culmination of a huge body of work by many people over an extended period of time, and is an outcome we are extremely proud of.

The transaction agreed with Chevron saw the US-based supermajor assume a 60% operating interest in AREA OFF-1, paying us

$12.5 million in cash as an entry fee, agreeing to carry 100% of the costs of 3D seismic acquisition campaign (up to a gross total cost of $37.5 million, net value to Challenger Energy of up to $15 million), and thereafter if the decision is made to proceed to drilling of an initial exploration well, carrying 50% of our share of costs associated with that well (up to a total gross cost of

$100 million, net value to Challenger Energy of up to $20 million).

As I have said in many forums over the past 12 months, we believe these transaction terms, as agreed with Chevron, are very attractive.

Firstly, whilst all CEOs will claim that their company is undervalued, in this case, if properly analysed, the embedded value to our Company in the AREA OFF-1 farmout arrangement represents multiples of our current share price – something I believe the equity market is yet to fully appreciate.

Secondly, and far more importantly, the AREA OFF-1 farm-out has transformed Challenger Energy, in that (i) our strategy and technical work has been validated by one of the world’s leading energy companies – the resulting intangible benefit in terms of our industry “credentials” is immeasurable, (ii) going forward, the AREA OFF-1 project will be operated by a highly capable partner who has made a clear commitment to accelerated activity, and (iii) we have retained a material stake of 40% in the licence, which gives us enormous flexibility when it comes time to consider how we participate in any future success case.

We are now working closely with our new partner in anticipation of upcoming activity on AREA OFF-1. We share a common goal with Chevron, which is to see a 3D seismic acquisition commence as soon as possible – as at the date of this report, the expectation is that this will be in Q4 2025, subject to finalization of permitting by the Uruguayan Ministry of Environment. It is this activity, and subsequent well drilling, which we believe will ultimately unlock the considerable value potential we see in this asset.

AREA OFF-3

Whilst AREA OFF-1 might be described as “the jewel in the crown” of Challenger Energy’s portfolio, our second block in Uruguay, AREA OFF-3, offers considerable promise as well: based on initial assessment, a resource potential of up to 2 billion barrels and up to 5 trillion cubic feet gas (c. 1 billion barrels equivalent), from multiple exploration plays.

In June 2023, Challenger Energy had been designated as the party to whom the AREA OFF-3 licence would be awarded, on attractive terms. This award was finalised in March 2024, with the initial four-year exploration period for AREA OFF-3 commencing in June 2024.

As soon as the initial four-year exploration period commenced, we began our technical work programme for the block on an accelerated basis. Unlike AREA OFF-1, the AREA OFF 3 block has not only existing 2D seismic coverage, but 3D seismic coverage as well, which means our work programme can be focused on 3D seismic reprocessing. Having existing 3D seismic to work with is a significant advantage the value of which to Challenger Energy may not be fully appreciated: the existing 3D seismic of interest on AREA OFF-3 would, if acquired today, cost up to $40 million and take 1-2 years to acquire – whereas we now have the benefit of this prior expense, and the ability to accelerate the AREA OFF-3 timeline by several years.

Through the second half of 2024 and the first half of 2025, we have made solid progress on the technical work programme. As at the date of this report, reprocessing of 1,250 km2 of 3D seismic data from the previously acquired BP survey is complete, and a satellite seep and slick study, a seabed geochemistry study and a multibeam echo sound survey have also been completed, with encouraging complementary results to ongoing seismic work. The next stage of our work programme for AREA OFF-3 is now underway: technical analysis and interpretation ahead of updated mapping, prospect definition and volumetrics, with anticipated completion in Q3 2025.

Once finalised, this work programme (similar in scope to that undertaken for AREA OFF-1) is expected to underpin a formal farmout process for AREA OFF-3 through the second half of 2025. That is, our strategy for AREA OFF-3 is to follow the same formula that produced a successful outcome for AREA OFF-1: first, undertake high quality technical work to establish the prospectivity of the block and then, with the benefit of that technical work, seek to bring in a partner via a farmout process.

OTHER ASSETS

Trinidad and Tobago

Our strategy in Trinidad and Tobago, where we have small onshore production fields, has been twofold: achieve financial breakeven from core assets, and streamline operations / divest assets, so as to release value from them.

In terms of results, total 2024 production from the producing fields was constant (on a like-for-like basis almost identical to 2023 production), and total operating expenses and G&A (general and administrative expenses) was similarly constant. We were thus successful in our desire to operate the business on a generally cashflow breakeven basis. As in previous years, we did record a (relatively small) net operating loss, and we once again reconsidered the carrying value of the Trinidadian licences on our balance sheet, taking a further write-down in the asset values associated with the business.

More significantly, during 2024 we made progress with our desire to extract value from the assets in Trinidad and Tobago. In February 2024 we exited the Bonasse licence, in a way that relieved us of liabilities and commitments, and thereafter we were able to focus effort on finding a monetisation pathway for the remainder of the business. This effort culminated in February 2025, when we reached agreement to sell all of our remaining business, assets and operations in Trinidad and Tobago. As at the date of this report that transaction remains pending regulatory approvals, but we expect it to close by 30 June 2025, at which time we will see the complete exit from Trinidad finalised. This means the entirety of the Trinidad and Tobago business – with all associated income, assets, liabilities, exposures and administrative cost – will thereafter no longer feature in our financial statements.

The Bahamas

In relation to the Company’s licences in The Bahamas, throughout the course of 2024 we continued to pursue a renewal of those licences into a third exploration period. In parallel we continued to explore various alternative strategies seeking to monetise our Bahamian position. Tangible progress in the period was limited, but we are persevering, with a view to achieving a result in the coming 12 months.

CORPORATE

With the benefit of the validation provided by the Chevron farmout, in 2024 we also took the opportunity to focus on a number of corporate ‘housekeeping’ actions. At the heart of which was a simple objective: to attract new investors to the Company especially longer-term institutional investors – who understand what we are trying to do in Uruguay, and the timeframes involved.

During the period, we undertook a share consolidation, reducing the number of outstanding shares from about 10 billion to about 250 million. This was necessary because the large number of shares in issue, combined with the relatively low trading value per share, was a bar to investment in the Company by various parties, including in particular many institutional investors (a number of leading global share custodians are not permitted, in accordance with their custody rules, to hold shares in a company where its share trading value is below 1 penny per ordinary share).

This proved crucial to securing a meaningful equity investment from Charlestown Energy Partners LLC, initially in the form of a debt instrument (May 2024), which converted into equity – at a premium price – on closing of the Chevron farmout (October 2024), and in the process making Charlestown Energy one of the Company’s largest shareholders.

Charlestown Energy is a specialist energy investor associated with Charlestown Capital Advisors, a family office located in New York that was founded in 2005, and that has been making investments globally in E&P since 2016. Of particular relevance is the fact that since 2019 Charlestown Energy has been a cornerstone shareholder in Sintana Energy Inc, a TSX-listed exploration company. Sintana maintains an indirect interest in a portfolio of exploration licences in Namibia, including in particular having an interest in the GALP Energia discovery in the Orange Basin. Given the parallel between what has happened in Namibia in recent years and what we hope may happen in Uruguay in the coming years, we were thus very pleased to have been able to attract an investor such as Charlestown Energy to Challenger Energy.

Consistent with the long-term, strategic nature of Charlestown Energy’s investment, Mr. Robert Bose was also invited to join the Board (May 2024). Robert has been the Managing Member of Charlestown Energy since 2016, having joined Charlestown Capital Advisors as a principal in 2014. Prior, he spent 17 years in the Global Investment Banking Group at the Bank of Nova Scotia, most recently as Managing Director and Head of the Power & Utilities Group, with a specifical focus on the energy and power sectors. Robert is currently also serving as Chief Executive Officer of Sintana, which as noted represents a significant holding in Charlestown Energy’s current portfolio. Robert’s addition to our Board is extremely complementary, giving us the benefit of his experience, network, and industry insights that are highly relevant to Challenger Energy’s position in Uruguay.

Indeed, the combination of the Chevron partnership for AREA OFF-1, and adding Charlestown Energy to the register and Robert to the Board, appears to have made a difference, in that over the course of the past 18 months we have seen an increasing number of new (and longer-term focused) institutions, family offices and high net worth investors join our register. In particular, we have seen a strong increase in interest from North American-based investors, and we have thus made a concerted effort to market our Company more widely, alongside our normal investor engagement activities in the UK. As part of this effort, we listed on the OTCQB Ventures Market (April 2025), which affords US-based investors a much easier route to becoming shareholders in Challenger Energy – early uptake from investors in that market has been encouraging.

FINANCIAL PERFORMANCE AND FUNDING

For the 2024 period under review, we recorded a loss of $1.1 million (2023: $13.4 million). This includes the impact of the gain made on completion of the AREA OFF-1 farmout, as well as various non-cash items, most notably non-cash losses arising from accounting impairments associated with the Trinidadian assets.

Given the nature of our business, in past Annual Reports we have identified “burn” as the most relevant metric to evaluating our financial performance – that is, the amount of cash used in running/sustaining our business across any given period. In that respect, as noted, during 2024 our Trinidad and Tobago operations continued to operate on a largely self-sustaining basis (thus requiring minimal cash support), and the G&A cost for the rest of our business was $3.9 million, or approximately $324,000 per month. This is an increase of 37% as compared to 2023 ($2.4 million), but the 2024 figure includes a number of sizeable one-off amounts associated with the Chevron farmout (for example, legal and commercial advisory fees and success fees). If these are excluded, our 2024 overhead was consistent with that of 2023, and below the $200,000 per month cash “burn” target that we have had for many years: a level which represents the basic costs needed to stay in business as an AIM-listed vehicle, and which compares favourably with most of our peers.

Undoubtedly the financial highlight of 2024 was the receipt of $12.5 million in cash on closing of the AREA OFF-1 farmout. This enabled us to completely “clean house” in a financial sense – settling all outstandings, definitively addressing any legacy financial exposures, and ensuring that our funding needs for the coming years are fully met. We ended 2024 with approximately $8.4 million of unrestricted cash holdings (plus we had a further $1.3 million of restricted cash, which is money held in 
support of  work programme performance guarantees and bonds, and which will be released back to us over time once work programme commitments are fulfilled). Against this robust cash position we have no debt, our “burn” is low (as noted, we target keeping it below $2.4 million per annum), the minimum work programme on AREA OFF-1 in Uruguay has been completed and our share of costs for upcoming 3D seismic will be carried by Chevron, the work programme for AREA OFF-3 is modest, and we have no unfunded forward work programme commitments.

This is significant, in that it means we have adequate financial resource available to ensure that all currently expected costs and future operations for all of 2025, 2026, and into 2027 are fully-funded. This level of clear financial runway is a relatively rare situation for most “junior” E&P companies, and certainly puts Challenger Energy into the best position, capital-wise, it has been in for quite some time. This does not take into account the possibility of additional funding inflows in this time frame – with AREA OFF-1 we have retained a relatively large 40% working interest and thus the ability to farmout a further interest in that asset; with AREA OFF-3, like with the AREA OFF-1 farmout, we will be seeking a cash element to any farmout transaction. Success in either case would secure the balance sheet even further into the future.

ESG (Environmental, Social, and Governance)

A core value we have sought to embed into everything we do at Challenger Energy is to ensure that achieving our commercial objectives never comes at the expense of harm to people or the environment, and that our “social licence to operate” is maintained intact at all time. We want to be known as a responsible, reliable operator and a partner / employer of choice.

I am thus pleased to report that in 2024, across all of our operations, there were no incidents of note – whether personal injury, property damage or environmental. We maintained productive and positive relationships with all relevant Governments and regulatory bodies, and we continued our policy of investing considerably in Company-wide training programs and ESG awareness activities. As in previous years, we also made a number of targeted social and welfare contributions in the communities where we operate.

In summary, in 2024, the Company’s excellent ESG performance record continued. Everyone at Challenger Energy is committed to ensuring that this does not change in the future.

OUTLOOK

During 2024 we cemented our position as one of the largest acreage holders in Uruguay, and we showed that we are a company that does what it promises to do – technically, through excellent work; commercially, in being able to reach a market-leading farmout for the AREA OFF-1 block; and strategically, in developing an enviable position that no other junior player was able to develop, in what has become a global exploration “hot spot”.

In the next 12-24 months we expect to see Chevron rapidly take the AREA OFF-1 project forward, initially with a 3D seismic acquisition campaign and thereafter, assuming the results of the 3D are as we anticipate, exploration well drilling. In the same timeframe we will conclude our technical work programme for AREA OFF-3, with a view to then securing a partner via a farmout process – again, the ultimate objective being to see that block move forward to exploration well drilling. All of this activity will occur against a backdrop of heightened industry interest in the region, and substantial exploration work being undertaken by others offshore Uruguay, northern Argentina, and southern Brazil. And, over the next 12 months, we also expect to conclude our efforts to extract value from our assets in Trinidad and Tobago, as well as reach a resolution in relation to our licences in The Bahamas.

In concluding my review of 2024, I wish to express my appreciation for the support we received throughout the year from our Board, stakeholders, regulators, suppliers, contractors and shareholders. I would also like to take this opportunity to especially thank all of our team. I say it each year, and I mean it sincerely: although we are a small company, we have highly-skilled, committed, and loyal employees, whose hard work and dedication is the foundation on which our success over the past few years has been built.

As I noted at the start of this report, 2024 was a transformational year for Challenger Energy, such that I believe the outlook for our Company over the coming 12-24 months is strong. Multiple value-creating opportunities now lie before us, and your management is working every day, to ensure that we are able to capitalise on these opportunities in a way that creates maximum value for shareholders.

Eytan Uliel Chief Executive Officer
12 June 2025

CEG are in a very strong position right now and the fact that this detailed statement has been needed to give the shares a kick up the butt is proof that the market cannot even see some of the best value seen around for a very long time.

I don’t need to add to the detailed comments by the Chairman and CEO in this statement because they have been blimmin obvious for months and months. With a huge amount of good news in the bank following the Chevron farm-out, which left CEG in a cracking position on its own, the company is staring at even more upside in the medium term which I am convinced will add increased value.

I have doubled my TP to 50p in recent months as I consider the previous 25p number to be only valuing the Chevron farm-in value. I didn’t do that for the good of my health, even on the cautious numbers I had then the target is easily achievable, in today’s markets the can be little doubt that big structures must be a premium.

I bet a dollar to a wet doughnut that the data room will be full, targets from Jamaica to the south Falklands are seeing oil executives on fishing trips, investors don’t look back in anger and come running when you’ve missed the boat…

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog