Equator Exploration Secures Additional Funding

Equator Exploration has entered into an additional secured loan agreement with a shareholder lender. Under this arrangement, the shareholder lender has agreed to provide a US$7.5 million facility to the Company. In consideration for that, the Company has agreed to issue 10,989,000 warrants at an exercise price of 0.35p to the shareholder lender, pro-rata to the amount drawn down. This facility will share pro rata in the collateral security pool which pledges Equator's interests in Equator Exploration JDZ Block 2 Limited and Aqua Exploration Limited, as previously announced on June 11, 2007 as part of the Announcement on a conditional merger agreement and financing update.