Summary results of CPR

Summary results from the CPR are as follows:

Reserves (MMbbls)	1P	2P	3P
Total	0.69	1.29	1.92

Contingent Resources (MMbbls)	1C	2C	3C
Total	0.71	7.46	24.70

Certified 2P Reserves

ERCE has certified 2P reserves across Challenger Energy’s portfolio of production assets in Trinidad and Tobago, as summarised in the following table:

Reserves (MMbbls)	1P	2P	3P
East Fields	0.53	1.09	1.66
West Fields	0.16	0.20	0.26
TOTAL	0.69	1.29	1.92

Notes
1.     Company Working Interest reserves are based on the working interest share of the field gross reserves and are prior to deduction of royalties.
2.     Challenger Energy hold a 100% interest in both the East Fields – Goudron, Inniss-Trinity; and the West Fields – South Erin, Icacos and Bonasse.
3.     Totals are added arithmetically which means statistically there is a greater than 90% chance of exceeding the total 1P and less than a 10% chance of exceeding the total 3P.
4.     ERCE have not audited the SWP, including Saffron as part of this Independent CPR.

2P reserves relate to known oil that is capable of being produced economically, and thus the 2P reserves as certified by ERCE relate solely to production capable of being generated from Challenger Energy’s existing wells in existing fields. The 2P reserves do not assume any contribution from infield drilling and enhanced oil recovery projects. Moreover, apart from routine operating costs required to keep wells online, accessing this production potential does not require material amounts of incremental capital expenditure.

At oil prices of around US$60 – 80 per barrel, it is estimated this level of 2P reserve represents in excess of US$75 – 100 million of gross cashflow potential to the Company, and a reserve base equivalent to a baseline production of 400 bopd for approximately 9 years.

Certified 2C Contingent Resources

ERCE has certified 2C resources across Challenger Energy’s portfolio assets in Trinidad and Tobago, and Suriname, as summarised in the following table:

Contingent Resources (MMbbls)	1C	2C	3C
East Fields	0.28	5.92	19.71
West Fields	0.13	0.45	1.45
Suriname	0.30	1.09	3.54
TOTAL	0.71	7.46	24.70

Notes
1.   Company Working Interest resources are based on the working interest share of the field gross resources and are prior to deduction of royalties.
2.   Challenger Energy hold a 100% interest in the East Fields – Goudron, Trinity Inniss; the West Fields – South Erin, Icacos and Bonasse; and Weg naar Zee in Suriname.
3.   These are unrisked Contingent Resources that have not been risked for chance of development and are sub-classified as development unclarified.
4.   Totals are added arithmetically which means statistically there is a greater than 90% chance of exceeding the total 1C and less than a 10% chance of exceeding the total 3C.
5.   ERCE have not audited the SWP, including Saffron as part of this CPR

2C resources relate to hydrocarbons that ERCE considers can be producible from the existing discovered fields, albeit contingent on the expenditure of development capital for infill wells and the successful delivery of waterflood and CO2 injection projects. As future capital is deployed it would typically be expected that the 2C resource base would migrate into the 2P reserves category upon demonstration of commercial viability. As such, the certified 2C resources position provides validation of Challenger Energy’s capacity / strategy to achieve near-term incremental production growth.