Equator Exploration Raises US $250 Million through Placement

Equator Exploration Ltd. has placed 41,050,900 new common shares with institutional investors at a price per share of 350p (US$6.09) for total proceeds of £143.7 million (US$250 million). The shares being issued will be admitted to the London AIM exchange on or about 23 February 2006. Following their issuance, the Company will have 174,878,090 million shares issued and outstanding.

Commenting on the private placement of shares, Wade Cherwayko, Chief Executive Officer of Equator said, "We are pleased with the continuing support of our existing shareholders and new investors. The funds raised will support the company's aggressive exploration, appraisal and development drilling program for 2006 as well as the possible acquisition of additional exploration acreage."