Saffron-2 Well Update

28 July 2021

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

Saffron-2 Well Update

Challenger Energy (AIM: CEG), the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development and exploration assets across the region, provides the following update in relation to production testing of the Saffron-2 appraisal well.

As previously advised, the Saffron-2 appraisal well (Challenger Energy 100% operating interest) was successfully drilled to a depth of 4,567ft encountering similar Upper, Middle and Lower Cruse reservoirs to those encountered by the Saffron-1 exploration well. Since the last announcement of 14 July 2021, the drilling rig has been fully demobilised, to be replaced at site by a Challenger Energy workover rig along with production tanks and major production equipment. Following inspection and subsequent formal approval of both the well completion and production facilities by the Ministry of Energy and Energy Industries (MEEI), approximately 130ft of potential reservoir sands in the Lower Cruse sections of the well was perforated, to enable production testing from these zones to commence.

Currently drilling materials and fluids are being recovered from the well, which is expected to continue for several days. Once the well has been fully "cleaned-up", pressures, oil and fluid types, and production rates from the Lower Cruse zones of the well can be ascertained - an important part of the process as this reservoir has not previously been tested/ produced. Thereafter, the other 200ft of net pay identified in the Upper and Middle Cruse zones will be perforated and tested, to give a full assessment of the well's production potential. Further announcements will be made as appropriate.

Eytan Uliel, Chief Executive Officer, commented:

"The objective of the Safffron-2 well is to understand the production potential from the various reservoir units identified by both the Saffron-1 and Saffron-2 wells, starting with the Lower Cruse intervals. I am pleased to advise the first stage of production testing at the Saffron-2 well has commenced, with well bore clean-up operations underway. We will provide a further update once we have an indication of production potential."

For further information, please contact:

Notes to Editors

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay. In Trinidad and Tobago, Challenger Energy has five (5) producing fields, two (2) appraisal / development projects and a prospective exploration portfolio in the South West Peninsula. In Suriname, Challenger Energy has on onshore appraisal / development project. Challenger Energy's exploration licence in each of Uruguay and The Bahamas are highly prospective, and offer high-impact value exposure within the overall portfolio value.

Challenger Energy is quoted on the AIM market of the London Stock Exchange. 

https://www.cegplc.com 

ENDS