Verenex Confirms Fifth Oil Discovery In Libya



    CALGARY, Dec. 10 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to confirm its fifth oil discovery D1-47/02 in Area 47
in the Ghadames Basin in Libya. The D1-47/02 new field wildcat exploration
well was drilled to a depth of 9,720 feet with the Ensign Rig 28 and was
tested at a maximum flow rate of 7,742 barrels of oil per day ("bopd") (gross)
confirming its status as an oil discovery. The Libyan National Oil Corporation
("NOC") has also confirmed the well as an oil discovery.

    D1-47/02 New Field Wildcat Oil Discovery Confirmed

    Verenex has successfully completed flow tests at its new field wildcat
exploration well D1-47/02 utilizing the KCA DEUTAG Service Rig 32. The well is
located 5.3 kilometres northeast of the nearest well B1-47/02, the Company's
second announced oil discovery, and was drilled and cased to a depth of 9,720
feet. The Company carried out extended flow tests from a total of 157 feet of
perforations in two intervals in the Lower Acacus Formation at depths between
8,240 and 9,372 feet and one interval in the Middle Acacus Formation at a
depth of 8,080 feet. These tests yielded a combined maximum measured flow
rate, as restricted by test equipment capability, of approximately 7,742 bopd
(gross) of light sweet crude oil and 13.7 million cubic feet per day
("mmcf/day") (gross) of natural gas through choke sizes on particular
intervals ranging from 32/64ths to 80/64ths inch. Measured API gravity of the
crude oil ranged from 32 to 59 degrees.
    At the request of the NOC and consistent with earlier well test
protocols, flow rates at the D1-47/02 well were also measured through a
smaller and more restrictive choke size of 32/64ths inch. The choke-restricted
oil and gas rates were 3,845 bopd and 12.0 mmcf/day, respectively.

    D1-47/02 Flow Test Rates at 32/64ths Inch Choke Size

    
    -------------------------------------------------------------------------
    Depth at Top            Restricted                       Flowing    Oil
         of      Perforated   Choke                         Wellhead  Gravity
    Perforations  Interval    Size     Oil Rate    Gas Rate Pressure (degrees
        (feet)      (feet)   (inches)    (bopd)   (mmcf/day)  (psia)    API)
    -------------------------------------------------------------------------
        9,280        92      32/64ths    1,320       11.1     2,409      59
    -------------------------------------------------------------------------
        8,240        55      32/64ths    1,950        0.8       687      41
    -------------------------------------------------------------------------
        8,080        10      32/64ths      575        0.1       134      32
    -------------------------------------------------------------------------
    

    "We are now seven for seven with our exploration drilling program in
terms of wells drilled and cased and we have fully flow tested five of these
wells. The remaining two drilled wells will be tested by the end of the year.
The results from the D1-47/02 oil discovery brings our combined maximum
measured test rate on announced oil discoveries to 75,000 bopd (gross)", said
Jim McFarland, President and CEO of Verenex. "We continue to exceed
expectations and believe the best is yet to come", he said.
    The D1-47/02 well has been suspended as a potential future oil production
well.
    The maximum combined 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.

    Preliminary Appraisal Report for D1-47/02 Oil Discovery Completed

    The Company has submitted a Preliminary Appraisal Report for the D1-47/02
oil discovery to the Area 47 Management Committee and the NOC. This is the
fourth preliminary appraisal report submitted by Verenex. Discussions are
underway with the NOC concerning a potential appraisal well offsetting the
D1-47/02 oil discovery.
    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.

    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
    the CNW Photo Network and archived at http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/
    %SEDAR: 00020996E




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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VERENEX ENERGY INC.

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