Challenger Energy Provides Update on March/April 2022 Production Well Recompletion Programme

Source: 4/20/2022, Location: South America

Challenger Energy, the Caribbean and Atlantic-margin focused oil and gas company, with oil production, appraisal, development and exploration assets across the region, is pleased to provide the following technical update:

In late March 2022, the Company detailed a near-term programme of recompletions of underperforming and non-producing wells from its extensive well stock in Trinidad, focussed on production enhancement.

Four recompletions have to date been completed, ahead of schedule and below budget. The aggregate incremental production from these four recompletions has been in the range of 40 to 60 bopd - in line with pre-work expectations as previously advised.

In aggregate, this represents a production increase of approximately 10%-15%, with gross production across the Company's fields now consistently averaging approximately 400 bopd.

Further near-term production enhancement activities are being prepared, with a target to increase production by a further 10% over the coming months.

In addition to this well activity, repairs to access roads, upgrades to utilities, and facilities integrity work continues as planned, with this work due to be completed before the end of Q2 2022. Improved access will bring additional well stock into the ongoing review process for potential future recompletions, and the facilities/ infrastructure-based activity is designed to maintain baseline production on a consistent basis.

This work is benefitting from the restructured Challenger Energy team, including a greater level of in-country presence of the leadership team, which has been constrained to date by international travel restrictions.

Eytan Uliel, Chief Executive Officer of Challenger Energy, said:

"The turnaround of our Trinidad and Tobago business unit is proceeding according to plan, with good results seen thus far from the field work underway since the completion of the Company's restructuring and recapitalisation in March 2022. The focus at Challenger Energy remains on getting the basics right - maintaining stable baseline production, achieving incremental production growth from the existing fields, maximising sales revenues and cashflow, and continuing to evaluate opportunities to grow production through value accretive M&A opportunities."

Gulf Oil and Gas
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