Challenger Hits Main Target Zone and Updates Progress on 'Endeavour' Well Drilling Offshore Trinidad

CALGARY, ALBERTA, Dec 29 (MARKET WIRE) --
Challenger Energy Corp. ("Challenger") (TSX VENTURE: CHQ) (AMEX: CHQ)
announced today that Challenger, along with its partners, Canadian
Superior Energy Inc. ("Canadian Superior") (TSX: SNG) (AMEX: SNG) and, BG
International Limited ("BG"), a wholly owned subsidiary of the BG Group
plc (LSE: BG.L) having drilled the "Endeavour" well offshore Trinidad to
a depth of approximately 17,063 feet subsea in the final section of the
well and into the main target zone for the well, have decided to re-drill
the final section of the well with a mechanical sidetrack. Further
drilling in the previously drilled final section is no longer practicable
due to well bore damage that occurred during recent well control
operations. Well control operations were initiated to manage an
uncontrolled flow into the well that occurred during regular drilling
operations while changing out a worn drill bit.

The geological data obtained from the drilling to date of 'Endeavour' has
prompted the decision to re-drill the final section of the well with a
mechanical sidetrack. When drilling was stopped to change out a worn
drill bit, the data indicated that the main targeted zone for this well
has been encountered. Logging While Drilling data indicates that the
'Endeavour' well has encountered 162 ft of gross reservoir quality sands
over a 168 foot interval to this point. The partners in the well have
agreed to drill further into the main target zone; to better determine
the full extent of reservoir, to obtain wireline logs over the pay
section, and to further evaluate the various reservoir parameters. The
sidetrack drilling operations are planned to commence within five days.
Well data from the Endeavour well will be used to position a potential
appraisal well in 2009 over a previously announced discovery on Block
5(c).

The "Endeavour" well, spudded on August 28, 2008, is the 3rd well in an
initial 3 well program being drilled by Challenger and its partners on
Block 5(c), located approximately 60 miles offshore, off the east coast
of Trinidad. "Endeavour" is being drilled on a separate prospect
determined from the analysis and evaluation of extensive 3D seismic on
Block 5(c). Earlier this year, Challenger announced two separate natural
gas discoveries on Block 5(c); in the "Victory" well, announced on
January 14, 2008; and, in the "Bounty" well, announced on August 13,
2008. The "Endeavour" well is being drilled by the Kan Tan IV
semi-submersible drilling rig in approximately 1,000 feet of water.

Challenger is paying one third of the costs of the initial exploration
program on Block 5(c) to earn a 25% interest in the production sharing
contract covering Block 5(c).

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.

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a
strategy focused on connecting competitively-priced resources to
specific, high-value markets. Active in 27 countries on five continents,
BG Group has a broad portfolio of exploration and production, Liquefied
Natural Gas (LNG), transmission and distribution and power generation
business interests. It combines a deep understanding of gas markets with
an excellent track record in finding and commercialising reserves. See
www.bg-group.com for information on BG Group plc.

Canadian Superior is a Calgary, Alberta, Canada based oil and gas
exploration and production company with operations primarily offshore
Trinidad and Tobago, offshore Nova Scotia, Canada, Western Canada, and
North Africa. See Canadian Superior's website at www.cansup.com for
information on Canadian Superior.

This news release contains forward-looking information, including
estimates, projections, interpretations, prognoses and other information
that may or relates to future production, resource potential and/or
reserves, project start-ups and future capital spending. Forward-looking
information contained in this news release is as of the date of this news
release. The Company assumes no obligation to update and/or revise this
forward-looking information "except as required by law". Actual results,
estimates, projections, resource potential and/or reserves,
interpretations, prognoses and/or estimated results could differ
materially due to changes in project schedules, operating performance,
demand for oil and gas, commercial negotiations or other technical and
economic factors or revisions. This news release may contain the
reference to the term "undiscovered natural gas resources", which are
those quantities of natural gas estimated to be contained in
accumulations yet to be discovered. There is no certainty that any
portion of undiscovered resources (oil, natural gas, natural gas liquids
or other hydrocarbons) will be discovered and that, if discovered, in
this or any other discovery, the discovered resource may not be
economically viable or technically feasible to produce.

Statements contained in this news release relating to future results,
events and expectations are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities Exchange Act of 1934, as amended. These forward-looking
statements involve known and unknown risks, uncertainties, scheduling,
re-scheduling and other factors which may cause the actual results,
performance, estimates, projections, resource potential and/or reserves,
interpretations, prognoses, schedules or achievements of the Corporation,
or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such statements. Such
factors include, among others, those described in the Corporations'
annual reports on Form 20-F on file with the U.S. Securities and Exchange
Commission.

The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.

Contacts:
Challenger Energy Corp.
Attention: Dan MacDonald
(403) 503-8815
(403) 503-8811 (FAX)

Challenger Energy Corp.
Suite 200, 744 - 4th Avenue S.W.
Calgary, Alberta, Canada T2P 3T4
Website: www.challenger-energy.com

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