AREA OFF-1 – About the Permit

AREA OFF-1 is a large block covering approximately 14,557 km² located approximately 100 to 150 kilometres offshore Uruguay in relatively shallow water depth (50 to 1,000 metres). Challenger, a subsidiary of the Company following the Challenger Acquisition, was the first company to bid in the new Uruguay Open Round in May 2020, and in June 2020 was awarded AREA OFF-1, with the initial four-year exploration period commencing on 25 August 2022.

In late 2022, in view of growing industry interest in Uruguay’s offshore, Challenger made a decision to accelerate and expand the work required to be completed on AREA OFF-1 during the first four-year exploration period. In doing so, three material prospects with significant resource potential were identified and delineated. These prospects were named Teru Teru, Anapero and Lenteja.

In March 2024, the Group entered into a farmout agreement with a subsidiary of Chevron UEL for the AREA OFF-1 block. That transaction completed on 29 October 2024. Under the terms of the farmout agreement, in addition to payment of US$12.5 million in cash, Chevron UEL assumed a 60% operated interest in the block, in exchange for a full carry on a 3D seismic acquisition (up to a total gross programme value of US$37.5 million) and a partial carry on any subsequent exploration well (up to a total gross well cost of US$100 million).

The current expectation is that the seismic acquisition campaign will commence in Q1 2026, subject to the prior issuance of necessary environmental permits from the Uruguayan Ministry of Environment.

OFF-1 Snapshot

Location	Punta del Este Basin
Area	14,557 km2
Depth	50m – 800m
Distance Offshore	100 – 200kms
Grant Date	09-Jun-20
Contract Period	1st Exploration Period: August 25 2022 – August 24 2026 (All 1st Exploration minimum work obligations completed)
2D Seismic	5,000 kms