CHALLENGER ENERGY GROUP PLC

Share Issue/Capital Change • May 28, 2024

National Storage Mechanism | Additional information

RNS Number : 0622Q

Challenger Energy Group PLC

28 May 2024

28 May 2024

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

COMPLETION OF INVESTMENT BY CHARLESTOWN ENERGY

NEW DIRECTOR APPOINTMENT

Challenger Energy (AIM: CEG), the Atlantic margin focused energy company, is pleased to announce that the investment in the Company by Charlestown Energy Partners LLC (together with its affiliates and assignees "Charlestown") has completed on terms and conditions as previously announced, and that Mr Robert Bose, Managing Member of Charlestown, has joined the Board of the Company.

Highlights:

·    Charlestown has advanced a £1.5m loan to the Company;

·    On closing of the farm-out of the Uruguay AREA OFF-1 licence to Chevron, and subject to the prior completion of an agreed share consolidation, this loan (and interest) shall convert ("Conversion") into new ordinary shares in the Company at a fixed price of  0.168 pence  per share, being a c. 15% premium to the current share price ;

·    On Conversion Charlestown's shareholding will represent a c. 8.7% interest in the Company, thus making Charlestown one of the Company's largest shareholders;

·    Charlestown's investment will underpin accelerated commencement of technical activity on the Company's AREA OFF-3 licence offshore Uruguay; and

·    Mr Robert Bose ( a member of the Charlestown oversight committee and currently Chief Executive Officer of Sintana Energy Inc ) has been appointed as a Non-Executive Director of the Company, with immediate effect.

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

"We are pleased to have finalised the investment from Charlestown, a specialist investor in energy and E&P, including being a very successful earlier-stage investor in the Namibian conjugate margin which has obvious parallels to Challenger Energy. We also extend our welcome to Charlestown's Managing Member, Mr. Robert Bose, who has joined our Board. Challenger Energy is at an exciting point in its history, and we look forward to working together with Robert to ensure that we deliver on that promise over the coming period".

AIM disclosures:

Since 2016, Mr Bose has held sole oversight and responsibility for Charlestown, a private investment vehicle dedicated to investments globally in the energy and metals sectors. Mr Bose's role encompasses the origination, diligence, execution, and oversight of both direct private equity and public investments. Additionally, Mr Bose currently serves as Chief Executive Officer and a Board Member of Sintana Energy Inc, a significant investment within the Charlestown portfolio, as well as serving on the operating committee and Board of Directors for other private and public portfolio companies. Mr Bose manages and maintains a wide range of relationships expected to be of value to the Company, including those with other family offices, private equity providers, financing partners, and management teams.

The following information is disclosed relating to Mr Bose pursuant to rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies.

Mr Bose, aged 51 years, holds no shares in Challenger Energy plc but has control over Charlestown's investment in the Company which, on Conversion, will represent an approximately 8.7% interest in the Company's enlarged share capital . Mr Bose is or has been a director of the following companies during the five years preceding the date of this announcement:

Current directorships / p artnerships	Past directorships / partnerships within the last five years
Auro USA Inc Black Bayou Energy Hub LLC Charlestown Energy Partners LLC Sintana Energy Inc New Zealand Energy Corp	Buzzards Bench Holdings LLC

For further information, please contact:

Challenger Energy Group PLC

Eytan Uliel, Chief Executive Officer

Tel: +44 (0) 1624 647 882

WH Ireland - Nomad and Joint Broker

Antonio Bossi / Darshan Patel / Isaac Hooper

Tel: +44 (0) 20 7220 1666

Zeus Capital - Joint Broker

Simon Johnson

Tel: +44 (0) 20 3829 5000

Gneiss Energy Limited - Financial Adviser

Jon Fitzpatrick / Paul Weidman / Doug Rycroft

Tel: +44 (0) 20 3983 9263

CAMARCO

Billy Clegg / Hugo Liddy / Sam Morris

Tel: +44 (0) 20 3757 4980

Notes to Editors

Challenger Energy is an Atlantic-margin focussed energy company, with production, development, appraisal, and exploration assets in the region. The Company's primary assets are located in Uruguay, where the Company holds high impact offshore exploration licences. Challenger Energy is quoted on the AIM market of the London Stock Exchange. 

https://www.cegplc.com  

ENDS

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