Daily charts 10/8/2011

CEL

US Acerage acquisition in two proven shales

US acreage acquisition in two proven shale formations

• Challenger Energy has acquired an interest in a large unconventional resource with 

interest earned via drilling and leasing activities, with Challenger acting as operator

MERCURY STETSON PROSPECT (Texas)

• Two proven shale formations – Barnett and Woodford

• Massive potential gas in place with OGIP estimated at 360 BCF/sq mile 

• Large prospect area – potentially up to 55,000 acres(86 sq miles)

• Farm in to earn up to 50% in a 26,000 acres contiguous land position with three 

pipelines across prospect with an initial target of 35,000 acres across the prospect

Consideration for 50% interest
Under the terms of the agreement, Challenger will:
• Act as operator;
• Pay up to US$2.2 million as and when required  for the renewal and extension of 
existing leases plus the acquisition of additional leases;
• Drill, fracture stimulate, and complete two vertical wells;
• Conduct a seismic program funded partially by revenue from the first well; and
• Connect the two wells to the nearby sales pipeline.
Following completion of this initial program, Challenger will have a 50% interest in the permit 
leases which currently total ~ 26,000 net acres.   The Joint Venture will target a controlling 
interest of at least 35,000 net acres (~ 55 sq.miles) across the prospect area over the next 6 
months.

LCY

MHM

XCD

CGM