07:19 AM EDT, 10/09/2025 (MT Newswires) -- Sintana Energy ( SEUSF ) said Thursday it is acquiring Challenger Energy in an all-shares transaction valued at $83.63 million.

Challenger shareholders will receive 0.47 common share of Sintana per share held. Based on the closing price of $0.66 per Sintana share on the TSX Venture Exchange Oct. 8, the acquisition represents an implied value of $0.3105 per Challenger share. Challenger shareholders will have a 25% stake in Sintana when the transaction closes.

Challenger is focused on offshore Uruguay, holding interests in two blocks, be AREA OFF-1 (40% working interest, Chevron holds a 60% working interest and is the operator) and AREA OFF-3 (100% working interest and operator). Challenger is the only "junior" with a significant offshore position in Uruguay and the broader region, and also holds legacy assets in The Bahamas, a statement said.

Sintana has also entered into a loan agreement with Charlestown, a shareholder in Sintana and Challenger, to provide it with a working capital facility of US$4 million from the acquisition's close.

Sintana also intends to list its shares on AIM in the fourth quarter of this year.

"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 chief executive Robert Bose.