Verenex Completes Bought-Deal Financing

Verenex Energy has completed the sale, on a bought-deal basis, of 7,935,000 common shares at $14.50 per share to a syndicate of underwriters led by RBC Capital Markets and including Haywood Securities Inc., Canaccord Capital Corporation and Orion Securities Inc., resulting in gross proceeds of Cdn$115,057,500, which includes the exercise of an option granted to the underwriters to purchase an additional 1,035,000 common shares at the issue price for the purposes of covering the underwriters' over-allocation position.

Vermilion Resources Ltd., a significant shareholder of Verenex, purchased 2,068,965 common shares under the financing and, as a result, now owns 41.8% of the outstanding common shares of Verenex.

The net proceeds of the offering are expected to be used primarily to fund the Company's 2007 and 2008 exploration drilling and seismic activities in Libya and France going forward and for general corporate purposes.

The common shares are being issued in Canada pursuant to a prospectus and have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities in any jurisdiction.

Verenex is a Canada-based, international oil and gas exploration and production company with a world-class exploration portfolio in the Ghadames Basin in Libya and the Bay of Biscay offshore France.