Maricopa (San Joaquin Basin) : 50% Working Interest
Challenger has a 50% Working Interest in the Maricopa Project located in the San Joaquin Basin, California. Challenger (together with its Joint Venture partner Solimar Energy Limited (ASX Code: SGY) (“Solimar Energy”) continued the exploration and development of the Maricopa Project (CEL 50% Working Interest).
In March 2008, the Wellington Maricopa #6 well was the first well to be drilled at the Maricopa Project. This well was successfully production in late April 2008 and produced oil at an average daily rate of 35 barrels of oil per day and gas was stabilized at an average daily rate of 120,000 cubic feet per day. Production from the Wellington #6 well continues to flow at good rates of oil and low rates of water. Total of 8,933 barrels of oil were sold at an average of approximately US$70.38 per barrel during the 2009/10 financial year.
The success of the Wellington Maricopa #6 well was followed by the drilling of the Wellington Maricopa #7 well in September 2008.
Wellington # 7 has been problematic from the start due to the high water cut. Two attempts to isolate the water were undertaken with measurable improvement in performance and the well was estimated to be producing approximately 6 barrels of oil per day. As further evaluation of the well’s relative 
production of oil and water occurred, the parties concluded that the profitability of the well remained marginal and a decision was made to shut-in the well.
Plans for a more sophisticated and cost effective water disposal system are progressing. Solimar Energy is also looking at the possibility of approaching other producers in the area to ascertain if they would be interested in participating in the costs of installing a water disposal line which they would then have access to.
Challenger (together with its joint venture partner Solimar Energy) has several future well locations identified, and consideration is also being given to drilling a horizontal well. A new geologic review has also been undertaken to identify further new drilling locations to increase potential production. Given the recent acquisitions in South Africa and Texas, the Company is evaluating the future of this project and how it fits in with the Companies plans and objectives.
