TIDMCEG
RNS Number : 8655S
Challenger Energy Group PLC
19 July 2022
19 July 2022
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
Trinidad Q2 2022 Update
Challenger Energy (AIM: CEG), the Caribbean and Atlantic -margin
focused oil and gas company, with oil production, appraisal,
development and exploration assets across the region, provides the
following update on its Trinidad and Tobago business unit's
operating results for Q2 2022:
-- Total gross oil production for Q2 2022 was 34,159 barrels
equating to approximately 375 barrels of oil per day (bopd),
representing an approximately 6% increase over Q1 2022 (358
bopd).
The increase in average daily gross production is principally
attributable to a focused effort on maintaining baseline
production. It is noted that the Company's 2022 work program, which
is focused on near-term production enhancement activities (as
announced in RNS dated 7 June 2022) is to be executed in phases
over the coming months, and thus the expected impact of this work
on production is not yet reflected in the production rates achieved
during Q2 2022.
It is further noted that notwithstanding the increase in total
oil production, the quarterly result was adversely impacted by
especially severe torrential rains in the last two weeks of June
2022, which caused several days of downtime due to electrical
failures and safety-related total field shut downs.
-- Total oil sales in Q2 2022 amounted to 31,170 barrels,
representing approximately a 5% increase over Q1 2022, with a gross
realised average price per barrel sold of US$97.45, representing
approximately a 17% increase over Q1 2022 .
As noted above, especially severe weather conditions were
experienced in the last two weeks of June 2022, and resulted in the
Company being unable to deliver approximately 800 barrels of oil
for sale prior to the close of the second quarter. However, this
unsold inventory will be realised early during Q3 2022.
-- Revenue received by the Company from oil sales (being gross
revenues less Government royalties and mandatory source deductions
and adjustments applicable under the relevant licences) (1) ,
amounted to approximately US$1.4 million in Q2 2022. This
represents average net revenue to the Company of US$45.15 per
barrel sold, an approximately 15% increase over Q1 2022.
-- In total, the Company's operations in Trinidad and Tobago
generated an (unaudited) pre-tax operating cash surplus in Q2 2022
of approximately US$0.4 million (Q1 2022: US$0.2 million). This
surplus is stated after field operating costs, in-country G&A
and other Trinidad expenses, but before corporation and other taxes
(including supplemental petroleum tax, where applicable). It is
noted however that, given the extent of carry-forward tax losses in
Trinidad and Tobago, t he Company is currently largely shielded
from corporation taxes.
Eytan Uliel, Chief Executive Officer of Challenger Energy,
said:
"Everyone in the Challenger Energy team continues to work on
driving our production business in Trinidad and Tobago forward, and
the results of the second quarter of 2022 represent steady
improvements across the board - as compared to the first quarter
production was up, oil sales were up, and cash flows being
generated in-country have increased. It is also important to note
that these results are due to a dedicated focus on managing the
Trinidadian asset portfolio prudently and efficiently, and do not
yet reflect any of the additional production we hope to realise
from our planned 2022 work programme, which as advised in June will
be rolled out across the second half of 2022. I therefore look
forward to reporting further progress in the coming months, as we
begin executing our planned work for the remainder of the
year."
---
Note 1: Oil sales are predominantly made to Heritage Petroleum
Company Limited, the Trinidadian national oil company, who then
apply certain deductions and adjustments before payment of funds to
the Company. These vary between various licences, and include
deduction of Government royalties, Heritage overriding royalties,
facilitation fees, escrow and mandatory contributions to the
abandonment fund, oil impost, and in respect of Goudron and
Inniss-Trinity only, deduction of agreed first tranche volume and
addition of an agreed handling fee.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, which forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal)
Act 2018 (as amended).
For further information, please contact:
Challenger Energy Group PLC Tel: +44 (0) 1624
Eytan Uliel, Chief Executive Officer 647 882
Strand Hanson Limited - Nomad Tel: +44 (0) 20 7409
Rory Murphy / James Spinney / Rob 3494
Patrick
Arden Partners plc - Broker Tel: +44 (0) 20 7614
Simon Johnson 5900
CAMARCO Tel: +44 (0) 20 3757
Billy Clegg / James Crothers / Hugo 4980
Liddy
Notes to Editors
Challenger Energy is a Caribbean and Atlantic margin focused oil
and gas company, with a range of exploration, appraisal,
development and production assets and licences, located onshore in
Trinidad and Tobago, and Suriname, and offshore in the waters of
Uruguay and The Bahamas. In Trinidad and Tobago, Challenger Energy
has five (5) producing fields, two (2) appraisal / development
projects and a prospective exploration portfolio in the South West
Peninsula. In Suriname, Challenger Energy has on onshore appraisal
/ development project. Challenger Energy's exploration licences in
Uruguay, the South West Peninsula of Trinidad, and The Bahamas
offer high-impact value exposure within the overall portfolio
value.
Challenger Energy is quoted on the AIM market of the London
Stock Exchange.
https://www.cegplc.com
ENDS
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END
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(END) Dow Jones Newswires
July 19, 2022 02:00 ET (06:00 GMT)
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