Caribbean and Atlantic-margin focused oil junior Challenger Energy intends to advance a proposed farm-out of its sole exploration block offshore Uruguay, as it also assesses potential energy transition business opportunities in the South American nation.

Challenger acquired in 2020 exploration rights for Block OFF-1 in the Pelotas basin, which spans approximately 15,000 square kilometres in water depths ranging from 200 to 1000 metres.

The company expects to complete initial exploration commitments at OFF-1 early in the second quarter and is seeking a farm-out with the dual objective of realising upfront cash and funding a planned 3D seismic acquisition campaign.