Challenger Energy PLC (LON:CEG) said it had “reinvigorated” talks with potential farm-in partners for its offshore acreage in the Southern Territorial Waters off the Bahamas.
It dubbed the area “highly prospective” following post-drill analysis of its first well.
While Perseverance-1 was deemed non-commercial, there was enough data to encourage the company to press the authorities to renew its licence for another three-year term.
The logs showed the presence of hydrocarbons at “various horizons” downhole to 3,905 metres.
“Oil was identified from high oil saturation values from logs in a number of reservoir sections, thus verifying the existence of a working Lower Cretaceous petroleum system and reservoir quality sequences in the Aptian,” investors were told.
However, Challenger believes the true oil potential may be in the underlying Jurassic interval, which was not penetrated by Perseverance-1.
“In particular, the relatively cool well temperatures place the postulated Jurassic source rock (producing in nearby Cuba and the US Gulf of Mexico) in the oil window, thus oil generative,” it added.
Challenger is now looking for a partner to help it drill a follow-up well and said “a number of parties” had expressed an interest in potentially working with the exploration group.
Chief executive Eytan Uliel said: “As I have commented previously, it is often the case in our industry that several exploration wells are required before the potential of a frontier basin is unlocked.
“We had hoped for ‘instant gratification’ with Perseverance-1, which was not the case. However, notwithstanding the non-commercial results of that well, based on what we have learned we continue to believe that the licences in The Bahamas are highly prospective.
“As such, we advised the Government of The Bahamas of our desire to renew the licences into a third three-year exploration period, and are working through that process, which will likely take some time.
“Meanwhile, we are continuing with our evaluation of the exploration potential of the licences, working to reduce technical uncertainties, and continuing in our efforts to secure a farm-in partner for the future. We will keep shareholders appraised of material developments.”
In the same update, shareholders were told a call for a judicial review that had initially been brought to stop work on Perseverance-1 but then went to appeal and has now been dropped completely.