Challenger Energy Says Bounty Well on Schedule

Challenger Energy reports that the Bounty well has been drilled to a depth of 3,540 feet and 20 inch casing is currently being run into the well-bore. The Bounty well is currently on budget and on schedule to drill to a planned total depth of 18,000 feet subsea in June 2008.

The Bounty well is the second in a series of three wells being drilled on Intrepid Block 5(c) located approximately sixty miles east of the coast of Trinidad in water depths of approximately 1,000 feet. The Bounty well follows the successful drilling and extensive production testing of the nearby Victory natural gas and condensate discovery well, also located on Block 5(c). The series of three wells located on the Intrepid Block 5(c) are targeting three structures that potentially contain over four tcf of undiscovered resources of natural gas.

Challenger is participating in the initial exploration program on Intrepid Block 5(c) by paying one-third of the costs of the initial three wells to earn a 25% interest in the production sharing contract covering Block 5(c). Canadian Superior is the operator of the block and the other partner is BG Group.