Challenger Energy reaches Endeavour target zone

2008-12-29 14:03 ET - News Release

Also News Release (C-SNG) Canadian Superior Energy Inc

Mr. Dan MacDonald of Challenger Energy reports

CHALLENGER HITS MAIN TARGET ZONE AND UPDATES PROGRESS ON 'ENDEAVOUR' WELL DRILLING OFFSHORE TRINIDAD

Challenger Energy Corp., along with its partners, Canadian Superior Energy Inc. and BG International Limited, a wholly owned subsidiary of the BG Group PLC, 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 redrill the final section of the well with a mechanical sidetrack. Further drilling in the previously drilled final section is no longer practicable due to wellbore 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 have prompted the decision to redrill 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 indicate that the Endeavour well has encountered 162 feet 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, which was spudded on Aug. 28, 2008, is the third well in an initial three-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 3-D seismic on block 5(c). Earlier this year, Challenger announced two separate natural gas discoveries on block 5(c): in the Victory well, announced in Stockwatch on Jan. 14, 2008, and in the Bounty well, announced in Stockwatch on Aug. 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-per-cent interest in the production sharing contract covering block 5(c).

We seek Safe Harbor.