Sintana-Challenger Merger to Boost Exploration in Southern Atlantic
October 9, 2025
Oil and gas company Sintana Energy has agreed to acquire Challenger Energy, which holds interest in two blocks offshore Uruguay as well as other assets in broader region.
The all-share transaction, valued at about $60 million, will create a combined exploration platform spanning eight licenses in Namibia and Uruguay, as well as legacy assets in the Bahamas and Colombia.
The combination will give Challenger shareholders about 25% of Sintana’s issued share capital after completion, which is expected by the end of the fourth quarter of 2025, subject to regulatory and shareholder approvals.
Sintana also plans to seek admission of its shares to trading on London’s AIM in the fourth quarter.
Challenger holds a 40% interest in Uruguay’s AREA OFF-1 block alongside Chevron and operates AREA OFF-3 with 100% working interest. The company is the only junior with a significant offshore position in Uruguay and the surrounding region. It also holds legacy assets in the Bahamas.
Sintana said the combination of the two companies would create a leading exploration platform with exposure to high-impact hydrocarbon plays across the Southern Atlantic conjugate margin, supported by partnerships with major operators.
“The combination of Sintana and Challenger delivers on our long-term strategy to create and execute on a portfolio of exposures to high impact exploration opportunities. Expanding our aperture to capture the promise of the Atlantic margin from Namibia and Angola to Uruguay with a diversified portfolio of development stage and exploration assets creates a market leader positioned to deliver significant success,” said Robert Bose, Chief Executive Officer of Sintana.
Completion is subject to Challenger shareholder approval, court sanction, regulatory consents, and other customary conditions. Sintana will file the required business acquisition report under Canadian securities rules in due course.
Challenger’s Assets in Uruguay and the Bahamas
AREA OFF-1 is a large block covering approximately 14,557 km2 and located approximately 100 – 150 km offshore Uruguay in relatively shallow water depth (50 to 800 meters). The license contract was signed in May 2022, with the initial four-year exploration period commencing on August 25, 2022.
In late 2022, in view of growing industry interest in Uruguay’s offshore, Challenger made a decision to accelerate and expand the work required to be completed on AREA OFF-1 during the first four-year exploration period. In doing so, three material prospects with significant resource potential were identified and delineated. These prospects were named Teru Teru, Anapero and Lenteja.
AREA OFF-3 is a large block covering an area of 13,252 km2 and located approximately 75 to 150 km offshore Uruguay in relatively shallow water depths (25 to 1,000 meters). Challenger bid for the block in May 2023 and was awarded the license in June 2023. Subsequently, the license contract was signed on March 7, 2024, with the initial four-year exploration period starting on June 7, 2024. Challenger holds a 100% working interest in and is the operator of the block.
Since 2008, Challenger has held four exploration licenses offshore the Bahamas, which have been renewed through two successive exploration periods.
The second exploration period of Challenger’s Bahamian licenses expired on 30 June 2021. In March 2021, consistent with the terms of the licenses, Challenger applied to the Government of the Bahamas to renew the licenses for a third exploration period.
The government has not yet responded to this application and, given the length of time that has passed since the application was made, Challenger is presently exploring alternative means of monetizing the value of its historic investment in the Bahamas, including considering legal remedies available against the government.
