Challenger Successfully Closes Equity Financing of $27.8 Million

Challenger Energy Corp. has successfully closed a previously announced equity financing for gross proceeds of $27,826,100. The financing consisted of the sale of 6,956,525 units ("Units") at a price of $4.00 per Unit. Each Unit is comprised of one common share and one-half of one common share purchase warrant exercisable over the next of 24 months at a price of $4.40 per common share purchase warrant. Challenger has also granted to its syndicate of investment dealers an over-allotment option, exercisable in whole or in part, at any time over the next 30 days of up to 1,043,475 additional Units. If the Over-Allotment Option is exercised in full, the total gross proceeds for the financing will be $32,000,000.

The equity financing was conducted through a syndicate of investment dealers led by Blackmont Capital Inc. and also including Thomas Weisel Partners Canada Inc. and Wolverton Securities Ltd.

Challenger will use the net proceeds of the equity financing for its ongoing exploration program and activities offshore Trinidad and Tobago. As previously reported, Challenger is currently participating in the drilling of the "Bounty" well on Block 5(c), offshore Trinidad. The drilling operations on the "Bounty" well were commenced immediately following the successful drilling and extensive production testing of the nearby "Victory" discovery well, also located on Block 5(c). The operations on the "Bounty" well are proceeding on time and on budget with results expected in June 2008.