SNG's partner Challenger Energy is put up for sale

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Exploration and production of oil and natural gas.

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Road_Warrior

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SNG's partner Challenger Energy is put up for sale

posted on Feb 05, 2009 05:23PM

Well now it is starting to get interesting as Canadian Superior's partner Challenger has just struck a special committee to explore its future possibilites such as selling itself and its share of the Intrepid 5c gas fields. The following Press Release states that Peters & Company has been retained to solicit bids on Challanger. It also states that the testing should be completed on the Endeavour Well by the end of February to determine the net pay on the Endeavour Well. The big question is when the reserve report will be completed on the 5c block. There is speculation by various posters on Investor Village that the Endeavour 1 well is an extention of the Bounty field and Victory fields which would creat a much more massive gas discovery than any of the three fields alone. Hopefully the share price will start heating up for both Challenger and Canadian Superior which are trading for almost the same price the last couple of days.

Challenger Appoints Special Committee to Evaluate Strategic Alternatives

22:02 EST Thursday, February 05, 2009

CALGARY, ALBERTA--(Marketwire - Feb. 5, 2009) - Challenger Energy Corp. ("Challenger" or "Company") (TSX VENTURE:CHQ)(NYSE Alternext US:CHQ) announces that its Board of Directors has appointed a special committee of directors (the "Special Committee") with a mandate to undertake a process to evaluate the various strategic alternatives available to the Company. In this regard, the Special Committee has retained Peters & Co. Limited as its financial advisor to assist in the review process.

The Special Committee has been formed to examine all alternatives available to Challenger, including the sale of the Company, in order to ensure that shareholder value is maximized and to address the Company's $14 million bridge facility. Operations are nearly complete with respect to the initial exploration phase of Block 5(c), offshore Trinidad and Tobago. 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, along with its partners, Canadian Superior Energy Inc. ("Canadian Superior") (TSX:SNG)(NYSE Alternext US:SNG) and, BG International Limited ("BG"), a wholly owned subsidiary of the BG Group plc (LSE:BG.L) are continuing preparations to conduct flow testing on the "Endeavour" well on Block 5(c). As previously announced, the main targeted zone for this well has been encountered and has been evaluated with a full suite of electric wireline logs; and operations are proceeding to flow test the well.

All operations on the Endeavour well are estimated to be completed near the end of February, to be followed by the release of the drilling rig. The data received to date from the "Endeavour" well has enabled the partners to further enhance their understanding of not only this particular well and its related structure, but also the overall development potential of the entire Block 5(c). Test information from the well is expected to confirm productive characteristics of the reservoir tested and the net pay encountered in the well.

In 2008, 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 information from the three exploration wells drilled on Block 5(c), along with the extensive 3D seismic coverage of Block 5(c) and nearby fields, encourages moving forward with the further appraisal of resources discovered and development planning.