Challenger Energy Group PLC on Tuesday said its decision to enter Uruguay has been validated by the award of two offshore blocks to global energy companies.

Challenger Energy shares were up 14% trading at 0.10 pence per share on Tuesday morning in London.

The Isle of Man-based oil and gas company focused on the Caribbean and the Atlantic-margin said the entrance of well-regarded international companies, and their commitment to ‘undertake sizeable and meaningful work programs in the near term...underscores the solid technical foundation and excellent value proposition’ of its AREA OFF-1 block.

In 2020, Challenger successfully bid for the AREA OFF-1 block, gaining the first mover status offshore Uruguay. The company said it is ‘already well advanced’ to completing its initial work commitment on the block, ahead of schedule.

Following the award of three blocks in May 2022, a further two have been awarded to a consortium of Shell PLC and APA Corporation, and to YPF SA on December 27.

The company said its strategy to seek a farm-in partner for the near-term remains unchanged, as it hopes to accelerate its work programme in AREA OFF-1. Challenger Energy said it hopes to capitalise on the increased interest in the area by moving forward into a farm-in agreement in 2023.

Chief Executive Officer Eytan Uliel said: ‘This dramatic increase in interest in Uruguay and the neighbouring region is directly related to the very sizeable discoveries made in the conjugate margin Orange Basin in early 2022.’

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