Verenex has opened data rooms in London UK to facilitate a potential corporate sale as one of the strategic options currently under review by the Company. It is expected that these data rooms will remain open until at least mid-December. The Company is targeting to complete its review of strategic options in the first quarter of 2009.
As previously advised, the Libyan National Oil Corporation ("NOC") approved a list of qualified companies to view confidential technical data associated with the Company's assets in Area 47 in the Ghadames Basin in Libya. The qualified companies include international oil companies and national oil companies from around the world.
Verenex has achieved considerable success in Libya since acquiring rights in Area 47 in Libya's first international bid round in January 2005. As announced on November 3, 2008, DeGolyer and MacNaughton ("D&M") carried out an independent assessment of resources in Area 47 effective September 30, 2008. The aggregate of D&M's best estimate of gross contingent resources and risked mean estimate of gross prospective resources, on an oil equivalent basis, is approximately 2.15 billion barrels.
This assessment is underpinned by 16 exploration and appraisal wells drilled by Verenex and an extensive seismic data base that includes 1,707 km(2) of new 3D seismic, 4,200 km of new 2D seismic and 1,000 km of reprocessed vintage 2D seismic. The Company is currently drilling two new field wildcat exploration wells which are expected to be completed in December 2008.
The Company has successfully flow tested 11 wells at a maximum aggregate rate of 98,000 bopd of light sweet crude oil and 76 mmscfpd of raw gas, as limited by test equipment capability, and is currently testing a 12th well.
On November 11, 2008 Verenex submitted a Final Appraisal Report on the A1-47/02 Field to the Area 47 Management Committee and the NOC. The Report included a preliminary development plan for the A1 Field and four other discoveries in a proposed Phase 1 development project producing 50,000 bopd of oil and 50 mmscfpd of gas (gross) by early 2011, subject to partner and regulatory approvals.
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