NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS.


Challenger Energy Corp ("Challenger") (TSX VENTURE:CHQ) (AMEX:CHQ), announced
today that it has filed and received a receipt for a final short form prospectus
in respect of a previously announced equity financing (the "Offering") and has
agreed to the principal terms of the Offering. Challenger will offer a minimum
of 10,000,000 units (the "Units") and a maximum of 13,333,334 of Units at a
price of $3.00 per Unit, each Unit being comprised of one common share of the
Challenger and one-half of one common share purchase warrant ("Warrant") for
gross proceeds of $40,000,002 if the maximum offering is reached. Each whole
Warrant is exercisable for a period of 12 months following the closing of the
Offering at a price of $3.50 per common share.


The Offering will be conducted by a syndicate of agents (the "Agents") led by
Blackmont Capital Inc. and also including Thomas Weisel Partners Canada Inc. and
Wolverton Securities Ltd. The Agents have the option, exercisable for a period
of 30 days following the closing of the Offering, to increase the Offering by up
to an additional 2,000,000 Units at issue price.


Challenger Energy Corp. is participating in a three well exploration program on
Block 5(c) located approximately 60 miles offshore Trinidad. The first well in
the exploration program ("Victory") was a new natural gas discovery that was
made in the first quarter of 2008. The Victory well is capable of producing 150
mmcf/day of sales natural gas and 3,000 barrels per day of condensate. The
second well in the exploration program ("Bounty") was also a new natural gas
discovery and recent production test results indicate that the Bounty well is
capable of producing 200 mmcf/day of sales natural gas. Drilling operations on
the third well in the exploration program ("Endeavour"), located approximately
5.2 miles from the Bounty discovery, commenced on August 28, 2008 and has
reached a depth of 6,846 feet toward its total depth objective of approximately
18,000 feet. 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 contact covering Block 5(c). Challenger's partners in the multi-Tcf
resource exploration program include Canadian Superior Energy Inc. and BG
International Limited, a wholly owned subsidiary of the BG Group, plc.


The net proceeds of the Offering, along with a conditional agreement Challenger
has entered into to access up to an additional $14 million, may be used by
Challenger to satisfy Challenger's remaining obligations in respect of the
expected costs of the Block 5(c) exploration program.


All securities issued in connection with the Offering will be freely tradable
under applicable securities laws in force in Canada. The Offering is scheduled
to close on or about October 2, 2008 and is subject to certain conditions
including, but not limited to, the receipt of all necessary approvals, including
the approval of the TSX Venture Exchange and AMEX.


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.


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. 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 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.


This new release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States or to or for the
account or benefit of US persons (as such terms are defined in Regulation S
under the United States Securities Act of 1933, as amended (the "U.S. Securities
Act")), absent registration or an exemption from registration. The securities
offered have not been and will not be registered under the U.S. Securities Act
or any state securities laws and, therefore, may not be offered for sale in the
United States, except in transactions exempt from registration under the U.S.
Securities Act and applicable state securities laws.