The following update is made further to the announcement made on June 30, 2008, in which Equator Exploration Limited reported that trading in the shares of the Company would be suspended until the publication of the Company's 2007 Report and Accounts.
Publication of Accounts
Equator confirms that it is making progress in working with the Company's auditors to finalize both the 2007 Accounts and the 2008 Interim Reports. Any further developments will be notified to the market as and when they take place.
Short Term Funding
The Company currently holds US$2.8mm on deposit as security for performance bonds issued to Joint Development Authority of Nigeria and Sao Tome & Principe to guarantee the expenditure under the work program on Block 2.
Equator has agreed terms with a Nigerian bank whereby the performance bonds will be issued with a requirement of only 50 percent cash collateral. This will release initially a sum of US$1.4 million of the cash security. Following completion of the audit by the JDA of the 2006 expenditure, the Company expects the total amount required for the performance bonds to be reduced, which will release a further sum from the secured cash.
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