Verenex Unlocks 10th Oil, Gas Discovery in Libya's Ghadames Basin

Verenex has confirmed an oil and gas discovery at the H1-47/02 new field wildcat ("NFW") exploration well in Area 47 in the Ghadames Basin. The H1 discovery is the Company's tenth oil and gas discovery in Area 47 since drilling began in September 2006. The Libyan National Oil Corporation ("NOC") has also announced
this discovery.

H1-47/02 NFW Exploration Well Confirmed as Oil and Gas Discovery

The H1-47/02 NFW exploration well (well No. 15) is located approximately 8.0 kilometers north of the Company's nearest oil and gas discovery at E1-47/02 in Block 2 and was drilled and cased to a depth of 10,475 feet in the Memouniat Formation. The Company carried out successful extended flow tests on the H1 well from a total of 155 feet of perforations in three sandstone intervals, including a 73 foot interval in the Memouniat Formation and two intervals totalling 82 feet in the Lower Acacus Formation. The tests yielded a combined maximum measured flow rate, as restricted by test equipment capability, of approximately 1,315 bopd (gross) of light sweet crude oil and 16.2 mmcf/day (gross) of natural gas through choke sizes on particular intervals ranging from 32/64ths to 48/64ths inch. Measured API gravity of the crude oil ranged from 42 to 64 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 1,021 bopd and 17.7 mmcf/day (gross), respectively.

The Company believes that the oil flow rates from the two Lower Acacus intervals are not representative of the capacity of these intervals and were negatively impacted by water production from a separate underlying water zone that flowed behind casing due to a poor cement job over part of the Lower Acacus Formation. Analysis of the cement bond log and subsequent temperature and spinner surveys confirmed this interpretation.

The H1-47/02 well is significant from two standpoints. Firstly, it extends the Lower Acacus play fairway further to the northeast in Block 2. Secondly, it is the third tested liquids-rich gas and condensate discovery in the Memouniat Formation in Area 47 and has extended the area of the Memouniat play fairway such that it is now considered a primary exploration target together with the Lower Acacus.

To-date, ten NFW exploration wells and two appraisal wells have tested at a maximum aggregate rate of approximately 99,320 bopd of oil and 92.7 mmcf/day of natural gas (gross). These wells have been suspended as potential future oil and gas production wells.