Verenex confirms oil and gas discovery in Libya at C1-47/04 well



    CALGARY, Sept. 29 /CNW/ - Verenex Energy Inc. ("Verenex" or the
"Company") (TSX - VNX) is pleased to confirm an oil and gas discovery at
C1-47/04 in Area 47 in the Ghadames Basin in Libya. This discovery in the
Lower Acacus and Memouniat Formations is the Company's second in Block 4 in
the northern part of Area 47 and is the eighth consecutive oil and gas
discovery since drilling began in September 2006. The Libyan National Oil
Corporation ("NOC") has also announced this discovery.
    The C1-47/04 new field wildcat ("NFW") exploration well (well No. 13) is
located approximately 14 kilometres northwest of the Company's nearest oil and
gas discovery at A1-47/04 in Block 4 and was drilled and cased to a depth of
10,155 feet in the Memouniat Formation. The Company carried out extended flow
tests on the C1 well from a total of 48 feet of perforations in two sandstone
intervals, including a 28 foot interval in the Memouniat Formation and a
20 foot interval in the Lower Acacus Formation. These tests yielded a combined
maximum measured flow rate, as restricted by test equipment capability, of
approximately 1,350 bopd (gross) of light sweet crude oil and 10.3 mmcf/day
(gross) of natural gas through choke sizes on particular intervals ranging
from 32/64ths to 56/64ths inch. Measured API gravity of the crude oil ranged
from 55 to 56 degrees.
    At the request of the NOC, and consistent with earlier test protocols,
flow rates were also measured through the smaller more restrictive choke size
of 32/64ths inch which yielded combined oil and gas flow rates of 1,050 bopd
and 8.7 mmcf/day, respectively, from the two intervals as shown below.

    
    C1-47/04 Flow Test Rates at 32/64ths Inch Choke Size

    -------------------------------------------------------------------------
    Depth    Form-      Perf-  Restricted   Oil     Gas     Flowing    Oil
    at       ation     orated    Choke     Rate    Rate    Wellhead  Gravity
    Top of            Interval    Size    (bopd) (mmcf/    Pressure (degrees
    Perfor-            (feet)   (inches)           day)     (psia)     API)
    ations
    (feet)

    -------------------------------------------------------------------------
    9,962    Memouniat   28     32/64ths    900    4.2       1,064     56
    -------------------------------------------------------------------------
    7,819    Lower       20     32/64ths    150    4.5       1,056     55
             Acacus
    -------------------------------------------------------------------------
    

    To-date, eight NFW exploration wells and two appraisal wells have tested
at a maximum aggregate rate of approximately 93,800 bopd and have been
suspended as potential future oil and gas production wells.
    The combined maximum 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.

    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.





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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