Equator Exploration Inks Deal for Bilabri FPSO

Equator Exploration

Equator Exploration and Peak Petroleum finalized their commercial negotiations with BW Offshore and were able to sign the FPSO Contract for the Bilabri Development. The BW Endeavor will be converted and renamed the BW Peace in shipyards in Singapore for use as the FPSO on the Bilabri field development. The partners have been informed that it is expected that the BW Endeavor will be available at the field in the second half of 2007.

The BW Endeavour was built for use as a tanker in 1976. It will be refurbished and re-certified in Singapore prior to its use as the production facility for the Bilabri field. The ship will have a production capacity of 30,000 bbl/d with space for eight risers. The FPSO will have a storage capacity of approximately one million barrels of stabilized crude oil. The contract is a three year contract with options to further extend up to ten years should the field development require.

Equator Exploration Limited engages in the exploration and development of oil and gas projects in highly prospective West Africa. Equator's objective is to build a diversified portfolio of exploration, appraisal and production assets in the region. The Company has exploration interests in the territorial waters of Nigeria and of Sao Tome & Principe as well as in the Joint Development Zone between the two countries.