Verenex First Appraisal Well in Libya Spies Oil

Verenex Energy Inc. reported that its first appraisal well A2-47/02 has confirmed the potential of a large hydrocarbon trap in the Lower Acacus Formation in the south western part of Area 47 that could be controlled both structurally and stratigraphically. This is a significant development and reinforces the possibility of both structural and stratigraphic play types in Area 47, increasing the exploration potential on the block.

Since acquiring exploration rights to Area 47 in 2005, drilling results have exceeded the Company's expectations. Verenex has drilled and cased six new field wildcat ("NFW") exploration wells and two appraisal wells. Six of these wells have been fully tested at a maximum aggregate flow rate, as restricted by test equipment capability, of greater than 75,000 barrels of oil per day ("bopd") (gross) through choke sizes on particular wells and reservoir intervals ranging from 32/64ths to 128/64ths inch. Flow testing of a seventh well has recently been completed and results will be released following review and approval by the NOC.

The prospect and lead inventory in Area 47 stands at more than 45 opportunities, which is expected to grow in 2008 as interpreted results are incorporated from additional 3D seismic shot in 2007 and additional 2D seismic currently being shot.

In parallel with an aggressive exploration program in Area 47 to maximize resource capture during the five-year exploration phase of the EPSA contract, the Company is progressing selective appraisal drilling to confirm the extent of the resources discovered in the southern part of Area 47 and to support the submission of a commerciality application targeted for mid-2008.

Verenex has completed flow testing at its first appraisal well A2-47/02, which was drilled to appraise the Company's first oil discovery A1-47/02 located 5.1 kilometres to the east. The A2-47/02 well was drilled to a depth of 10,400 feet with the KCA DEUTAG T-19 Drilling Rig, which was also utilized to test the well.

The A2-47/02 well was drilled on the crest of a Lower Acacus structure which was mapped at a subsea depth approximately 100 feet deeper than the structure at the A1-47/02 discovery. The A2-47/02 well was targeting to find oil in the structure and oil water contacts, particularly in the basal sands in the Lower Acacus Formation which appear as continuous from 3D seismic and well control in the area. The Company carried out extended flow tests from two sand intervals near the base of the Lower Acacus Formation.

The properties of the oil found in the lowest interval at the A2-47/02 well are essentially the same as those of the oil found in this same interval in the A1-47/02 well. Pressure gradients also align, indicating a common fluid system.

The flow tests, logs and other formation evaluation results indicate that the A2-47/02 well has intersected water oil contacts in each of two basal sands in the Lower Acacus Formation that were oil filled in the A1-47/02 well, indicating a discovered oil column of approximately 158 feet in the deepest sand and 106 feet in the second sand. The water oil contacts are at subsea depths below the mapped structural spill point in the structures found at A1 and A2-47/02. This is a significant result and confirms the possibility of a stratigraphic component to the hydrocarbon trap and a potentially large oil accumulation encompassing previously mapped stand-alone structural prospects at the A1-47/02 and A2-47/02 wells, and an un-drilled prospect between these two wells.


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