Challenger Energy, on November 29, 2007, closed a private placement by issuing approximately 1.9 million special warrants at a price of $1.80 per Special Warrant for gross proceeds of approximately $3.4 million, each whole Special Warrant being exercisable, for no additional consideration, into one (1) common share ("Common Share") in the capital of Challenger Energy. The Special Warrants will be subject to a four-month hold period from the date of closing of the private placement. The Common Shares issuable upon conversion of the Special Warrants, unless qualified for distribution pursuant to a prospectus on an earlier date, will be subject to a four-month hold period from the date of closing of the private placement. The financing was brokered by Pritchard Capital Partners. The proceeds of this private placement are being used to further the activities of Challenger Energy in the drilling of the first of three exploration wells; the "Victory" exploration well located 60 miles off the southeast coast of the Republic of Trinidad and Tobago, and for general corporate purposes.
Drilling in Trinidad:
Drilling of the 8 1/2" hole in the final section of the "Victory" exploration well is underway, continuing from the last casing, which was set to a depth of approximately 13,828 feet subsea. The partners in the multi-well program, BG International Limited, a wholly owned subsidiary of the BG Group plc and Canadian Superior Energy Inc., the operator, expect to proceed with drilling operations to a planned total depth of approximately 16,000 feet and then commence wireline logging operations on the final section of the well.