CALGARY, ALBERTA -- (Marketwire) -- 12/29/08 -- Challenger Energy Corp. ("Challenger") (TSX VENTURE: CHQ) (AMEX: CHQ) announced today that Challenger, along with its partners, Canadian Superior Energy Inc. ("Canadian Superior") (TSX: SNG) (AMEX: SNG) and, BG International Limited ("BG"), a wholly owned subsidiary of the BG Group plc (LSE: BG.L) having drilled the "Endeavour" well offshore Trinidad to a depth of approximately 17,063 feet subsea in the final section of the well and into the main target zone for the well, have decided to re-drill the final section of the well with a mechanical sidetrack. Further drilling in the previously drilled final section is no longer practicable due to well bore damage that occurred during recent well control operations. Well control operations were initiated to manage an uncontrolled flow into the well that occurred during regular drilling operations while changing out a worn drill bit.
The geological data obtained from the drilling to date of 'Endeavour' has prompted the decision to re-drill the final section of the well with a mechanical sidetrack. When drilling was stopped to change out a worn drill bit, the data indicated that the main targeted zone for this well has been encountered. Logging While Drilling data indicates that the 'Endeavour' well has encountered 162 ft of gross reservoir quality sands over a 168 foot interval to this point. The partners in the well have agreed to drill further into the main target zone; to better determine the full extent of reservoir, to obtain wireline logs over the pay section, and to further evaluate the various reservoir parameters. The sidetrack drilling operations are planned to commence within five days. Well data from the Endeavour well will be used to position a potential appraisal well in 2009 over a previously announced discovery on Block 5(c).
The "Endeavour" well, spudded on August 28, 2008, is the 3rd well in an initial 3 well program being drilled by Challenger and its partners on Block 5(c), located approximately 60 miles offshore, off the east coast of Trinidad. "Endeavour" is being drilled on a separate prospect determined from the analysis and evaluation of extensive 3D seismic on Block 5(c). Earlier this year, Challenger announced two separate natural gas discoveries on Block 5(c); in the "Victory" well, announced on January 14, 2008; and, in the "Bounty" well, announced on August 13, 2008. The "Endeavour" well is being drilled by the Kan Tan IV semi-submersible drilling rig in approximately 1,000 feet of water.
Challenger is paying one third of the costs of the initial exploration program on Block 5(c) to earn a 25% interest in the production sharing contract covering Block 5(c).
Challenger Energy Corp.
