Challenger Energy Corp. Announces Multi-Well Contract On Kan Tan IV Semi-Submersible Rig
Calgary, Alberta - Challenger Energy Corp. (Challenger) of Calgary Alberta, Canada announced that in Trinidad and Tobago, the operator of Block 5(c), Canadian Superior Energy Inc. (Canadian Superior) has entered into a firm multi-well drilling contract with the Kan Tan IV Semi-Submersible Offshore Drilling Rig managed by A. P. Moller - Maersk A/S, of Copenhagen, Denmark (trading in the name of Maersk Contractors), and owned by BeijingZhiyuan Industries Company Limited, of Beijing, China to commence drilling of two back-to back wells offshore Trinidad on Canadian Superior's "Intrepid" Block 5(c).
Neil Mackenzie, Challenger's President and CEO said, "We are very pleased with the contracting of the Kan Tan IV and the rapid progress Canadian Superior has demonstrated on this truly "World Class" project in Trinidad where we will be commencing drilling shortly."
Challenger has a participation agreement with Canadian Superior to assist Canadian Superior in the drilling of Canadian Superior and offshore Trinidad holdings by funding 1/3 of Canadian Superior's cost of drilling Canadian Superior's initial test wells to obtain 25% of Canadian Superior's revenue share from these prospects.
Challenger Chairman, Greg Noval, also said today, "Trinidad plays a very important role in supplying North America's natural gas market." Canadian Superior's "Intrepid" Block 5(c) is estimated to contain 4 TCF of natural gas currently valued at approximately U.S. $4.0 billion. The "Intrepid" Block 5(c) covers 80,041 gross acres and has significant natural gas exploration and development potential offsetting the large Dolphin gas field operated by British Gas. Based on detailed 3D seismic, a number of large structural gas prospects have been identified on the "Intrepid" Block 5(c) with multi-tcf potential. Also on Friday, March 17, 2006, British Petroleum (BP) announced it had just placed its "Cannonball" gas wells located offshore Trinidad on production. These wells are expected to produce a total of 800 mmcf/d (140 mboed). The gas field is estimated to contain over 2 tcf of natural gas.
SOURCE: Challenger Energy Corp.