Challenger Energy wholly owned Trinidadian subsidiary CEG Goudron Trinidad (CGTL) is set to start negotiations with the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI) over an exploration licence for the Guayaguayare block.

The Government of Trinidad and Tobago has authorised the MEEI to start negotiations with CGTL over granting an exploration and production (Public Petroleum Rights) licence for the Guayaguayare block, stated Challenger Energy.

Challenger said the Guayaguayare block is strategically and operationally synergistic with its core production business in Trinidad.

Located onshore in south-east Trinidad, the Guayaguayare block is said to be highly prospective and is Trinidad’s largest remaining underexplored and undrained contiguous onshore area.

The Guayaguayare block comprises around 65 historic wells. Of these, few wells are active while most are currently shut-in, suspended or abandoned.

Challenger anticipates that most of the wells at the block can be reactivated and serviced from existing operations. This offers the opportunity for a near-term production boost.

Challenger Energy CEO Eytan Uliel said: "Recognising the strategic and operational synergies available, we submitted only one bid as part of MEEI's 2022 Onshore and Nearshore Competitive Bid Round, for the Guayaguayare licence – one of the largest available onshore licences in Trinidad, and a block that is fully aligned to our strategy.

“We are enthusiastic about the prospects this block offers for CEG in Trinidad – both in terms of near-term production gains and long-term exploration upside."