Verenex confirms fourth consecutive oil discovery in Libya



    CALGARY, Dec. 3 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to confirm its fourth consecutive oil discovery
F1-47/02 in Area 47 in the Ghadames Basin in Libya and to provide an
operational update.
    The F1-47/02 new field wildcat exploration well was drilled to a depth of
10,300 feet and was tested at a maximum flow rate of 7,215 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.
    In the past 14 months, Verenex has successfully drilled and cased six new
field wildcat exploration wells and one appraisal well representing a 100%
success rate. Four of these wells have been fully tested at a maximum
aggregate flow rate in excess of 67,000 bopd (gross). Flow testing of a fifth
well has recently been completed and results will be released following review
and approval by the NOC. Flow tests at the sixth and seventh wells are
expected to commence shortly and should be completed before the end of
December 2007.

    Flow Testing at the F1-47/02 Well in Area 47 in Libya

    Verenex completed extended flow testing at the F1-47/02 new field wildcat
exploration well in early November utilizing the Ensign Drilling Rig 28. The
well is located 8.2 kilometres northeast of the Company's A1-47/02 oil
discovery and 3.1 kilometres northwest of the A1-NC3A oil discovery. An
18 foot interval at a depth of 9,842 feet in the Lower Acacus Formation was
tested and yielded 45 degrees API gravity light sweet crude oil at a maximum
measured flow rate, as restricted by test equipment capability, of
approximately 7,215 bopd (gross) and natural gas at a rate of 6 million cubic
feet per day ("mmcf/day") (gross) through a 96/64ths inch choke at a flowing
wellhead pressure of 464 psia.
    At the request of the NOC and consistent with earlier well test
protocols, flow rates at the F1-47/02 well were also measured through a
smaller and more restrictive choke size of 32/64ths inch. The choke-restricted
oil and gas rates were 2,527 bopd and 2.4 mmcf/day, respectively, at a flowing
wellhead pressure of 1,236 psia.
    "F1-47/02 is our fourth consecutive oil discovery and further validates
the exciting potential of Area 47", said Jim McFarland, President and CEO of
Verenex Energy Inc. "The combined maximum test rate of our four announced oil
discoveries is in excess of 67,000 bopd (gross) which is a solid measure of
the outstanding productivity of the Acacus sandstone reservoirs in these
wells. Three other wells have been cased and will be flow tested by year-end
2007. With this continued exploration success, we are well on our way to
establishing the resource base and well density to support our plans to
develop an initial phase of production of up to 50,000 bopd (gross) by the end
of 2009," he said.
    The F1-47/02 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.

    D1-47/02 New Field Wildcat Exploration Well Fully Tested

    Verenex has successfully completed flow tests at its new field wildcat
exploration well D1-47/02 from 157 feet of perforations in three reservoir
intervals, two in the Lower Acacus Formation and one in the Middle Acacus
Formation.
    The Company plans to release details of these flow tests on the D1-47/02
well once the results are reviewed and approved by the NOC, a process which is
currently underway.

    E1-47/02 New Field Wildcat Exploration Well to be Tested in December

    The KCA DEUTAG Service Rig 32 was released from the D1-47/02 well in late
November and is currently being mobilized to the E1-47/02 new field wildcat
exploration well to carry out flow tests on up to three reservoir intervals in
the Lower Acacus Formation.
    The E1-47/02 well is located 17.5 kilometres east of the Company's
D1-47/02 well and was drilled and cased to a final depth of 9,639 feet after
finding indications of hydrocarbons in the Lower Acacus Formation.

    A2-47/02 Appraisal Well Cased in Preparation for Testing in December

    Verenex has drilled and cased its first appraisal well A2-47/02, which is
designed to appraise the Company's first oil discovery A1-47/02 located
5.1 kilometres to the east. The A2-47/02 well was drilled to a depth of
10,400 feet with the Company's second contracted drilling rig KCA DEUTAG T-19
and found indications of hydrocarbons in the Lower Acacus Formation.
    Preparations are underway to flow test up to two reservoir intervals in
the A2-47/02 well with the KCA DEUTAG T-19 drilling rig in December.

    East 3D Seismic 90% Complete

    The acquisition phase of the Company's 1,225 square kilometre 3D seismic
survey in the eastern part of Area 47 is approximately 90% complete and
remains on track for a mid-December completion. The results are expected to
mature and expand the Company's exploration prospect and lead inventory and
provide support to the appraisal drilling and acreage retention strategy in
this part of Area 47.

    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.

    %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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