Verenex announces third party resource assessment for Area 47 in Libya



    CALGARY, Aug. 5 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to announce results of a third party assessment of oil
and gas contingent and prospective resources in Area 47 in Libya.
    DeGolyer and MacNaughton ("DM") has completed an initial assessment of
oil and gas resources in the Company's portfolio of discoveries and
exploration prospects in Area 47 effective February 1, 2008. The assessment
conforms to Canadian Securities National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities. Gross contingent (discovered) and
prospective (undiscovered) oil and gas resources in Area 47 are expressed in
the tables below as a range of estimates.
    In summary, the aggregate of DM's best estimate of gross contingent
resources and risked mean estimate of gross prospective resources is
approximately 1.6 billion barrels of oil equivalent.

    Area 47 Gross Contingent Resources

    The DM best estimate of Area 47 gross contingent oil resources discovered
in the Lower and Middle Acacus Formations is approximately 340 million
barrels. This estimate is based on results from seven exploration and
appraisal wells (six discoveries at A1, B1, C1, D1, E1 and F1-47/02 and one
appraisal well A2-47/02) drilled by Verenex in Block 2 in the southern part of
Area 47. The best estimate of gross contingent raw gas resources discovered in
the Lower Acacus and Middle Acacus Formations is approximately 342 billion
cubic feet. On an oil equivalent basis, the best estimate of gross contingent
resources is approximately 396 million barrels.

    
    -------------------------------------------------------------------------
                                      Area 47 Gross Contingent Resources(1)
    -------------------------------------------------------------------------
                                        Low           Best           High
                                    Estimate(2)    Estimate(3)    Estimate(4)
    -------------------------------------------------------------------------
    Oil - million barrels                 94.9          339.5          599.7
    -------------------------------------------------------------------------
    Raw Gas - billion cubic feet          68.9          341.5          605.7
    -------------------------------------------------------------------------
    Total - million barrels
    oil equivalent(5)                    106.3          396.4          700.6
    -------------------------------------------------------------------------
    

    Area 47 Gross Prospective Resources

    The DM unrisked mean estimate of Area 47 gross prospective oil resources
in the Lower Acacus Formation only is approximately 2.4 billion barrels
associated with 34 exploration prospects and leads. The unrisked mean estimate
of gross prospective raw gas resources in the Lower Acacus Formation is
approximately 1.7 trillion cubic feet. On an oil equivalent basis, the mean
unrisked estimate of gross prospective resources is 2.7 billion barrels.
    The corresponding geologic risk-adjusted mean estimates of gross
prospective resources in the Lower Acacus Formation are 1.1 billion barrels of
oil and 0.8 trillion cubic feet of raw gas, or 1.2 billion barrels of oil
equivalent.

    
    -------------------------------------------------------------------------
                                 Area 47 Gross Prospective Resources(6)
    -------------------------------------------------------------------------
                                                                    Geologic
                                           Unrisked                   Risk-
    --------------------------------------------------------------- Adjusted
                               Low      Best      High      Mean      Mean
                            Estimate  Estimate  Estimate  Estimate  Estimate
                               (7)      (8)       (9)       (10)      (12)
    -------------------------------------------------------------------------
    Oil - million barrels      940.2   2,011.8   4,305.3   2,399.4   1,060.0
    -------------------------------------------------------------------------
    Raw Gas - billion
    cubic feet                 828.6   1,517.8   2,780.6   1,696.9     761.1
    -------------------------------------------------------------------------
    Total - million
    barrels oil
    equivalent (11)          1,078.3   2,264.8   4,768.8   2,682.3   1,186.8
    -------------------------------------------------------------------------
    

    Commenting on the resource assessment, Jim McFarland, President and CEO
of Verenex said: "The DM assessment confirms that Verenex has established a
world class resource base in Area 47. We believe that the current discovered
resources are sufficient to underpin an initial development phase of
approximately 50,000 bopd (gross) and excellent potential exists to grow
production above this floor. We remain tremendously excited about the future
for Verenex given this resource outlook."
    This initial assessment reflects information available at the end of
January 2008 including drilling results from seven Verenex wells and
exploration prospects and leads mapped utilizing extensive seismic coverage in
Area 47 including 3D and 2D seismic shot by Verenex in 2006. As previously
announced on July 23, 2008, Verenex has since drilled and cased an additional
six wells (13 wells in total) and shot additional 3D and 2D seismic in late
2007 and early 2008. These more recent results have not as yet been reflected
in the resource assessment.
    The DM assessment excludes any resources associated with pre-existing oil
discoveries at A1-NC3A and G1-NC02 located within or on the boundary of
Block 2 in Area 47. The Libyan National Oil Corporation ("NOC") has advised
that certain areas around these discoveries are unavailable to Verenex for
exploration or exploitation under the current terms of the Area 47 Exploration
and Production Sharing Agreement.
    This resource announcement coincides with the release on SEDAR at
www.sedar.com of a material change report which was previously filed on a
confidential basis with securities regulators. The material change report
dated August 5, 2008 includes the following additional information: the risks
and level of uncertainty associated with the recovery of the resources, the
significant positive and negative factors relevant to the estimates and, in
respect of the contingent resources, the specific contingencies which prevent
the classification of the resources as reserves.

    
    Notes to tables:

    (1)  Contingent resources, as evaluated by DM, are those quantities of
         petroleum estimated, as of February 1, 2008, to be potentially
         recoverable from known accumulations using established technology or
         technology under development, but which are not currently considered
         to be commercially recoverable due to one or more contingencies.
         There is no certainty that it will be commercially viable to produce
         any portion of the resources.
    (2)  The Low Estimate is considered to be a conservative estimate of the
         quantity that will actually be recovered. It is likely that the
         actual remaining quantities recovered will exceed the Low Estimate.
    (3)  The Best Estimate is considered to be the best estimate of the
         quantity that will actually be recovered. It is equally likely that
         the actual remaining quantities recovered will be greater or less
         than the Best Estimate.
    (4)  The High Estimate is considered to be an optimistic estimate of the
         quantity that will actually be recovered. It is unlikely that the
         actual remaining quantities recovered will exceed the High Estimate.
    (5)  Total Contingent Resources represents the aggregate of the resources
         disclosed under "Raw Gas" and "Oil", combined on the basis that
         6,000 cubic feet of raw gas is equivalent to one barrel of oil
         equivalent ("boe").
    (6)  Prospective resources, as evaluated by DM, are those quantities of
         petroleum that are estimated, as of February 1, 2008, to be
         potentially recoverable from undiscovered accumulations by
         application of future development projects. Prospective resources
         have both an associated chance of discovery and a chance of
         development. There is no certainty that any portion of the
         prospective resources summarised in the DM reports will be
         discovered. If discovered, there is no certainty that it will be
         commercially viable to produce any portion of the prospective
         resources.
    (7)  The Low Estimate is P90.
    (8)  The Best Estimate is P50.
    (9)  The High Estimate is P10.
    (10) The Mean Estimate is the probability-weighted average, which
         typically has a probability in the P45 to P15 range, depending on
         the variance of prospective resources volume or associated value.
    (11) Total Prospective Resources represents the aggregate of the
         resources disclosed under "Raw Gas" and "Oil", combined on the basis
         that 6,000 cubic feet of raw gas is equivalent to one "boe".
    (12) The DM Pg-adjusted Mean Estimate, or "geologic risk-adjusted mean
         estimate", is the probability-weighted average of the hydrocarbon
         quantities potentially recoverable if a prospect portfolio were
         drilled, or if a family of similar prospects were drilled. The
         Pg-adjusted mean estimate is a "blended" quantity. It is a mean
         estimation of both volumetric uncertainty and geological risk
         (chance). This statistical measure considers and quantifies the
         geological success and geological failure outcomes. Consequently it
         represents the average or mean "geologic" outcome of a drilling and
         exploration program. The Pg-adjusted mean estimate is calculated as:
         Pg-adjusted mean estimate = Pg x mean estimate.
    

    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. Verenex is the operator and holds a 50% working interest in
Area 47 in Libya. Under the EPSA terms for Area 47, Verenex would receive an
initial production allocation (free of all taxes and royalties) of 6.85% in
any commercial development scheme. A more complete description of the Area 47
contract terms is included in the Company's various filings on www.sedar.com.

    This press release contains forward-looking statements, including but not
limited to operational information, future exploration and development plans
and anticipated future production. These statements are based on current
expectations and are subject to a number of risks and uncertainties that could
materially affect the results. These risks include, but are not limited to:
financing risks; geological risks; drilling risks; risks associated with
obtaining regulatory approvals; oil and gas industry operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
ability to attract and retain key personnel; the risk of commodity price and
foreign exchange rate fluctuations; the uncertainty associated with
negotiating with governments; and the risk associated with international
activity. Due to the risks, uncertainties and assumptions inherent in
forward-looking statements, prospective investors in the company's securities
should not place undue reliance on these forward-looking statements.

    Boes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6,000 cubic feet to one barrel is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.





For further information:

For further information: Jim McFarland, President & CEO, Verenex Energy
Inc., Telephone: (403) 536-8009; or Ken Hillier, Chief Financial Officer,
Verenex Energy Inc., Telephone: (403) 536-8005, www.verenexenergy.com

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