Challenger Energy recompletes four Trinidad wells

Caribbean and Atlantic margin-focussed oil and gas company Challenger Energy updated the market on its programme recompletions of underperforming and non-producing wells in Trinidad on Wednesday, reporting that four had been completed to date.

The AIM-traded firm said those recompletions were ahead of schedule and below budget.

It said the aggregate incremental production from the four recompletions was in the range of 40 to 60 barrels of oil per day, in line with its pre-work expectations.

In total, that represented a production increase of 10% to 15%, with gross production across the company's fields now consistently averaging around 400 barrels per day.

Further near-term production enhancement activities were being prepared, the board said, with a target to increase production by a further 10% in the coming months.

In addition to the well activity, repairs to access roads, upgrades to utilities, and facilities integrity work was continuing as planned, with that work due to be completed before the end of the second quarter.

Challenger said improved access would bring additional well stock into the ongoing review process for potential future recompletions, while the facilities and infrastructure-based activity was designed to maintain baseline production on a consistent basis.

The board said the work was benefitting from the restructured Challenger Energy team, including a “greater level” of in-country presence of its leadership team, which had been constrained recently by international travel restrictions.

“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,” said chief executive officer Eytan Uliel.

“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 cash flow, and continuing to evaluate opportunities to grow production through value accretive merger and acquisition opportunities.”

At 1223 BST, shares in Challenger Energy Group were up 3.9% at 0.1p.