Venture Capital Bank Acquires Stake in Major Oil Drilling Company

MANAMA, Bahrain, November 21 /PRNewswire/ -- Venture Capital Bank (VC
 Bank), a Bahrain-based investment bank, along with its partner, the US
 private equity firm Global Emerging markets (GEM), have acquired a
 significant stake in the MENA-based oil drilling contractor Challenger
 Limited. Established in 1991, Challenger currently owns and operates a
 fleet of 22 rigs in Libya providing drilling and work-over services of oil,
 gas and water wells, with offices in Egypt, Saudi Arabia and UAE.

 The acquisition was co-funded by VC Bank and its strategic technical
 partner GEM illustrating VCBank's non-conventional pursuit to attract North
 American and European funds and sources of capital to investment
 opportunities in the MENA region. This significant transaction was
 completed by a team from VC Bank and GEM, not only strengthening the
 successful partnership between the two firms, but demonstrating that the
 region hosts many attractive, yet obscured, investment opportunities
 represented in privately held companies such as Challenger that operates
 mainly in Libya. 

 The conclusion of this transaction by VCBank depicts the dimensions of
 the Bank's mandate to secure unique and attractive deals in the region for
 its investors and at the same time provide expansion and financing
 solutions to the regional small-to-medium enterprises in order to fulfill
 their untapped potential. Thus, the investment made in Challenger is
 mutually beneficial to both parties, allowing Challenger to achieve its
 growth plan and helping VC Bank to achieve its objectives of supporting
 regional companies and contributing towards the economies of the MENA
 region.

 Challenger Limited is an international provider of contract oil and gas
 land drilling and work over services, with over 15 years experience
 servicing major and independent oil and gas companies, first in Africa, and
 now expanding into the Middle East. It has a strong client base, including
 nearly all state-owned oil companies as well as international players such
 as Agip/Eni, Total. Marathon, Veba and Verenex Energy.

 Challenger Limited Chairman Mr. Hassan Tatanaki declared that "amongst
 all the alternative financing routes available to the company, Challenger's
 management has chosen to partner with VC Bank and GEM in order to fuel and
 expedite its capacity expansion plans and its geographical coverage. This
 was based on our utter confidence and belief in the investment model
 pursued by VC Bank and GEM and the clarity of the financing roadmap
 presented by them". Mr. Tatanaki said that "this transaction demonstrates
 that the growing cooperation among Libya, the US and the Middle East is
 creating an attractive investment environment for US and international
 financial institutions.