Verenex Energy Completes First Well in France

Verenex Energy has completed drilling its first exploratory well in France, the St. Lazare 2 horizontal well in the Paris Basin approximately 60 kilometers east of Paris. Drilling commenced on October 14, 2004 and was completed on November 15, 2004. Verenex holds a 95% participating interest in the well with Vermilion Energy Trust holding 5%.

The well was drilled as planned to a depth of approximately 2,000 meters (true vertical) and completed with a 490-meter horizontal section in the target Dogger zone, which is productive in the offsetting Malnoue field. The total measured well length was approximately 2,710 meters. Based on well log analysis, preliminary results are encouraging. Therefore, once the drilling rig is demobilized, a smaller service rig will be moved onto the well to acidize the carbonate reservoir and to production test the well. More definitive results will be available in December once the well testing program is completed.

The drilling rig will now be moved to southwest France to drill the Parentis 221 well, a horizontal infill well in the Parentis oil field.

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