Loan Arrangements

RNS Number:0386K
Equator Exploration Limited
17 December 2007



FOR IMMEDIATE RELEASE - 17 December 2007
FOR: EQUATOR EXPLORATION LIMITED
SUBJECT: Loan repayment deferral and potential replacement loan.


London, 17 December 2007 - Equator Exploration Limited ("Equator" or the
"Company") announces a short term deferral of a loan repayment and a potential
replacement of the loan.


In September 2007, as reported in the 2006 Annual Report, the Company entered
into an unsecured, short term working capital loan agreement for US$5 million
which, on 15 December 2007, was due for repayment or conversion into shares at a
price of 10 pence per share. The lenders have agreed to a short deferral of the
repayment date whilst the Company seeks the finalization of an alternative loan
with a commercial bank.


Equator Exploration Limited engages in the exploration and development of oil
and gas projects in highly prospective West Africa. Equator's objective is to
build a diversified portfolio of exploration, appraisal and production assets in
the region. The Company has exploration interests in the territorial waters of
Nigeria and of Sao Tome & Principe as well as in the Joint Development Zone
between the two countries.


Enquiries:

Equator                                                    [phone]
Philip Rand
Chief Executive Officer

Beaumont Cornish Limited (Nominated Adviser to Equator)    [phone]
Roland Cornish

Fox-Davies Capital Limited (Nominated Broker to Equator)   [phone]
Richard Hail

Buchanan Communications                                    [phone]
Bobby Morse/Ben Willey



Additional information regarding the Company can be obtained from the Company's
website. The Company's website can be accessed at www.equatorexploration.com.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCBGBDDIGBGGRR