Verenex Pounces on Oil at Libyan Wilcat Well

Verenex Energy Inc.

Verenex Energy has confirmed an oil and gas discovery at G1-47/02 in Area 47 in the Ghadames Basin in Libya. This discovery is the Company's seventh in Block 2 in the southern part of Area 47 and is the ninth announced oil and gas discovery in Area 47 since drilling began in September 2006. The Libyan National Oil Corporation ("NOC") has also announced this discovery.

The G1-47/02 new field wildcat ("NFW") exploration well (well No. 14) is located approximately 6.5 kilometers northeast of the Company's nearest oil and gas discovery at D1-47/02 in Block 2 and was drilled and cased to a depth of 10,645 feet in the Memouniat Formation. The Company carried out extended flow tests on the G1 well from a total of 12 feet of perforations in a sandstone interval in the Lower Acacus Formation. The test yielded a maximum measured flow rate, as restricted by test equipment capability, of approximately 4,167 bopd (gross) of light sweet crude oil and 2.0 mmcf/day (gross) of natural gas through a 64/64ths inch choke size. Measured API gravity of the crude oil was 41 degrees.

At the request of the NOC, and consistent with earlier test protocols, the flow rate was also measured through the smaller more restrictive choke size of 32/64ths inch which yielded oil and gas flow rates of 1,739 bopd and
1.0 mmcf/day, respectively.

To-date, nine NFW exploration wells and two appraisal wells have tested at a maximum aggregate rate of approximately 98,000 bopd and have been suspended as potential future oil and gas production wells.

The maximum measured flow test rate described above is 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.

Verenex Energy drilled the well as an operator under an EPSA agreement with NOC with interests distributed as follows :

  • First party interest ( NOC LIBYA ) 86.3%

Second Party members share interests as follows :

  • Verenex Energy Inc 6.85% (Operator)
  • MEDCO 6.85%