Verenex Strikes Oil in Ghadames Basin Onshore Libya

Verenex Energy Inc. has confirmed an oil discovery at A1-47/04 in Area 47 in the Ghadames Basin in Libya. This discovery is the Company's first in Block 4 and is a significant result, confirming the potential of a new Lower Acacus play fairway in the northern part of Area 47 and providing the first positive results in the deeper Memouniat Formation. The Libyan National Oil Corporation ("NOC") has also announced this discovery.

The A1-47/04 new field wildcat exploration well is located approximately 28 kilometers north of the Company's nearest oil discovery at D1-47/02 in Block 2 and was drilled and cased to a depth of 10,400 feet in the Memouniat Formation. The Company carried out extended flow tests on the A1 well from a total of 85 feet of perforations in two sandstone intervals, including a 39 foot interval in the Memouniat Formation and a 46 foot interval in the Lower Acacus Formation.
These tests yielded a combined maximum measured flow rate, as restricted by test equipment capability, of approximately 6,603 bopd (gross) of light sweet crude oil and 8.6 mmcf/day (gross) of natural gas through choke sizes on particular intervals ranging from 44/64ths to 96/64ths inch. Measured API gravity of the crude oil ranged from 39 to 49 degrees.
At the request of the NOC, and consistent with earlier test protocols, flow rates were also measured through a smaller more restrictive choke size of 32/64ths inch which yielded combined oil and gas flow rates of 2,934 bopd and 5.5 mmcf/day, respectively, from the two intervals as shown below.
To-date, seven exploration wells and one appraisal well have tested at a maximum aggregate rate of approximately 90,000 bopd and have been suspended as potential future oil production wells.
The combined maximum measured flow test rates described above are not necessarily indicative of the ultimate production rate and may be lower in any commercial development, which will be determined from reservoir engineering studies that constitute part of the appraisal and development planning activities currently underway.