Second Natural Gas Zone in 'Victory' Well Offshore Trinidad Discovered

Challenger Energy is pleased to announce the discovery of a second natural gas zone in the "Victory" well located on Block 5(c) offshore Trinidad. The second zone flow tested natural gas on a restricted basis at high pressures at rates averaging in excess of 30 mmscf/d. The previously announced discovery in the first zone tested flow rates averaging between 40 and 45 mmscf/d on a restricted basis with high pressures. The combined two zones could produce natural gas at an estimated rate of over 100 mmscf/d, with the first zone being condensate rich. Challenger President, Dan MacDonald, said today in Calgary, "We are pleased with the results of the well and possible further potential productive horizons have been identified in the well that we intend to evaluate with other wells planned to be drilled."

The "Victory" well is the first well in a series of a three well exploration program offshore Trinidad on Block 5(c). The semi-submersible drilling rig will now be moved to the second well location on Block 5(c) to drill the "Bounty" well, which is expected to be spudded in February 2008.