CALGARY, ALBERTA – Challenger Energy Corp. (“Challenger”) (TSX VENTURE:CHQ)(AMEX:CHQ), announced today that it has made a significant natural gas discovery with the drilling and production testing of the “Bounty” exploration well.
The “Bounty” exploration well was drilled to a total depth of approximately 17,360 feet and encountered gas bearing horizons with the main targeted zone in the well encountering approximately 200 feet of pay. Initial test results indicate that the “Bounty” well is capable of producing at a rate of approximately 200 mmcf/d from this high pressure zone.
The results from the “Bounty” well and interpretations of extensive 3-D seismic data and other data indicate a natural gas resource potential of up to 2.6 TCF of natural gas from the tested structure. During the testing of the “Bounty” well, production testing equipment capacity was maximized resulting in flow testing being restricted to a stabilized rate of 60 mmcf/d of natural gas with a flowing bottomhole pressure of 7186 psi.
The “Bounty” natural gas discovery is the second natural gas discovery Challenger and its partners have made in 2008 on Block 5(c) located approximately 60 miles off the east coast of Trinidad.
The “Bounty” discovery has proven up a large high quality natural gas reservoir that in combination with our extensive 3-D seismic data in the area appears to exceed 7,000 acres in size. The “Bounty” well is estimated to initially produce at approximately 200 mmcf/d of sales natural gas at the anticipated pipeline pressure. This compares favorably with production from the nearest analogous field, Dolphin Deep, where each of the two wells in this field produce at approximately 150 mmcf/d.
Operations are now underway to demobilize the testing equipment, suspend the “Bounty” well for production at a later date, and move the Kan Tan IV semi-submersible drilling rig to drill a third exploration well location on Block 5(c) , the “Endeavour” well, which should spud by the end of August 2008.
Challenger Energy Corp. is a Calgary, Alberta, Canada based oil and gas exploration company which is currently focusing on “high impact” oil and gas plays offshore the Republic of Trinidad and Tobago. See www.challenger-energy.com for information on Challenger.