CALGARY, Sept. 19 /CNW/ - Verenex Energy Inc. ("Verenex" or the
"Company") (TSX - VNX) is pleased to provide an update of its seismic and
drilling operations in Libya.
The Company continues to make excellent progress with its exploration
program in Area 47 and is on track to achieve its target to spud up to seven
wells in 2007. Five wells have been drilled to date since September 2006 (one
well having been drilled in 2006) of which three wells have been fully flow
tested, a fourth well is currently flow testing and a fifth well is cased and
awaiting flow testing. A sixth well is currently drilling and a seventh well
is expected to spud by early October with the Company's second contracted
East 3D Seismic Survey 39% Complete
The 1,225 square kilometre East 3D seismic survey commenced at the end of
July 2007 and is approximately 39% complete. The survey crew started in the
north section and is working south. The 3D area encompasses more than
20 prospects and leads identified from the 2D seismic acquisition program
completed in 2006, including the B1, C1, D1 and E1-47/02 wells drilled by the
Company in 2007.
The acquisition phase of the East 3D seismic survey should be completed
by the end of 2007 and processed and interpreted results should be available
in the second quarter of 2008. However, it is planned to process and interpret
the northern section of the survey (approximately 40% of the total) by
year-end 2007 to guide potential drilling in this area in early 2008.
D1-47/02 Well Currently Flow Testing
The D1-47/02 new field wildcat exploration well, located approximately
5.3 kilometres northeast of the nearest well B1-47/02, was drilled and cased
to a depth of 9,720 feet and found indications of multiple hydrocarbon-bearing
sandstone reservoirs in the Lower Acacus, Middle Acacus and Aouinet Ouenine
Formations as confirmed by shows during drilling, logs and other formation
evaluation results including recovered fluid samples.
The well is currently being flow tested with the service rig and two of
five planned intervals, both in the Lower Acacus Formation, have been tested.
Delays are being experienced due to a "fishing" operation currently underway
to recover stuck tubing in the well which could extend the program to early
October. The original plan was to flow test up to five reservoir intervals
from 244 feet of perforations. If fishing operations are unsuccessful then two
of the remaining three intervals, representing 65 feet of perforations in the
Lower Acacus and Middle Acacus Formations, would not be flow tested. However,
the Company completed an extensive formation evaluation program over these
intervals and good quality logs, pressure gradients and fluid samples are
available to support future resource assessments.
E1-47/02 Well Drilled and Cased
The E1-47/02 new field wildcat exploration well, located approximately
17.5 kilometres east northeast from the nearest well D1-47/02 in the eastern
part of Area 47, was drilled, cored, logged and cased in 45 days and the rig
released on September 4, 2007. The well was drilled to a depth of 9,639 feet
and found indications of multiple hydrocarbon-bearing sandstone reservoirs in
the Lower Acacus Formation as confirmed by shows during drilling, logs and
other formation evaluation results.
The indicated aggregate net pay in the E1-47/02 well is less than in the
Company's first four wells. It is planned to flow test up to three reservoir
intervals in the Lower Acacus Formation from 47 feet of perforations once the
service rig has completed testing at the D1-47/02 well.
Mapping the size of the trap at the E1-47/02 well will benefit from the
new East 3D seismic in this more tectonically affected part of Area 47 which
has potential for both structural and stratigraphic play types.
F1-47/02 Well Currently Drilling
To avoid interference with the East 3D seismic survey currently underway,
exploration and appraisal drilling through the remainder of 2007 will be
focused primarily in the existing South 3D seismic area where the Company made
its first oil discovery at A1-47/02 and where more than six additional
prospects and leads have been identified.
The NOC approved the Company's sixth drilling location F1-47/02 as a new
field wildcat exploration well in the South 3D seismic area. The well spudded
on September 14 and is being drilled with Ensign Rig 28. The well is planned
as a 10,300 foot test targeting the Lower Acacus Formation in a structure
located approximately 8.2 kilometres northeast of the A1-47/02 oil discovery
and 3.1 kilometres north northwest of the A1-NC3A oil discovery drilled by
AGOCO in 1999.
Second Drilling Rig to Spud Seventh Well by early October
The Company's second contracted drilling rig KCA DEUTAG Rig T-19 is being
mobilized to Area 47 following a two-well assignment to another operator in
Libya. The rig is expected to be ready to spud the Company's seventh well in
Area 47 by early October. The proposed drilling location is being finalized
with the NOC.
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 and the Bay of Biscay offshore France. 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 foreign 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
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