Challenger Limited announces the closing of a major international partnership deal

Challenger Limited announced today that it has reached a definitive agreement with Bronco Drilling Company, Inc. whereby Bronco acquires a significant stake in Challenger Limited in return for a combination of in-kind and cash contributions from Bronco. The Challenger shares acquired by Bronco are all newly-issued and will amount to 25% of Challenger's total issued and outstanding shares on fully diluted basis.

Bronco's in-kind contribution consists of six, different-capacity, land drilling rigs and ancillary equipment. Five of the contributed drilling rigs come from Bronco's existing marketed fleet and one rig is newly constructed by Bronco for the purpose of this transaction. This major partnership deal between Challenger and Bronco comes only one year after Venture Capital Bank (VC Bank), a Bahrain-based Islamic investment bank, and its partner, the US private equity firm Global Emerging Markets (GEM), made a sizable private equity investment in the MENA-based oil drilling contractor.

Challenger Limited is a company incorporated and organized under the laws of the Isle of Man, with branch offices in Libya, Egypt, and UAE, and a subsidiary company in Saudi Arabia. Challenger Limited currently owns and operates a premium fleet of 23, different-capacity, land drilling and work-over rigs, which at the moment, are all contracted for operations in Libya.

Challenger Limited, a prominent provider of contract oil, gas and water land drilling and work-over services, has over 15 years experience in providing services to major and independent oil and gas companies. Over that period of time, Challenger Limited has been operating in; Libya, Egypt, Tanzania, Gabon, and the Republic of Niger. The company has a strong client base, including nearly all state-owned and major oil companies in Libya, as well as International players such as Agip/Eni, Total, Marathon, IPL, Veba and Verenex Energy.

Mr. Hassan Tatanaki, Chairman of Challenger Limited, declared that " In view of the vast opportunities of high growth in the MENA region, we along with our partners have decided to go into partnership with one of the best-regarded companies in the oil drilling industry; namely Bronco Drilling Company. This partnership will energize and undoubtedly increase our capacity to expand Challenger activities in both scope and scale. This was based on our full confidence and faith in the investment model and general direction". Mr. Tatanaki said that "This transaction shows that the growing cooperation amongst Libya, the U.S., and the Middle East, is creating an attractive investment environment for U.S. and International companies". read more