Why Invest in Challenger Energy?

The current share price and thus market capital of Challenger Energy (AIM:CEG) is currently fully underpinned by the existing currently producing assets and reserve base.

 

Challenger Energy has a full programme of activity throughout2021 and into 2022 that has the potential to significantly increase that production base and therefore materially add value in the immediate short term.

In a success case, total potential capex requirement through balance of 2021 is in the range of $20m – $25m, with cash flows generated from early wells reinvested into / funding drilling of subsequent wells.

 Production(projected)Cashflow
(potential pa)
Capital costs(estimated)
Current Trinidad Production450-500 bopd$3m+-
Incremental production programs100 bopd$1.8m - $3.6m~$1m
Infill drilling programs200-400 bopd$1.8m - $3.6mUp to $6m
Saffron (Trinidad)
* Saffron-2 (May/June 2021)200-300 bopd$1.8m - $2.6m$3m
* Saffron phase 1 development (H2, 2021)1,000+ bopd$8m - $12m$15m - $20m
* Saffron full-field development (2022 onwards, 2-3 years)4,000+ bopd$25m+Up to $60m
WNZ (Suriname)
* WNZ initial phase (H2, 2021)100 bopd$1m~$2.7m
*WNZ full-field development (2022 onwards)900+ bopd$2.5m+Up to $15m

In summary, the current equity value is captured in the current share price – everything else is upside and risk is diversified through the portfolio to offer multiple routes to accessing value upside.

 

Investor Relations

Investor Relations

Challenger Energy regulatory news, share information and financial documents

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Assets & Operations

Assets & Operations

We have assets in The Bahamas, Trinidad and Tobago, Suriname and Uruguay

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Share Price

24/06/2021

2.85

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