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".
