Verenex Energy Inc. - Libya Operational Update



    CALGARY, July 23 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to provide an update of its operational activities in
Libya which continue to deliver excellent results.

    DRILLING AND COMPLETIONS PROGRAM ON TRACK

    The Company remains on track to drill 11 to 12 exploration wells in Area
47 in 2008 utilizing two drilling rigs under long term contracts, which would
increase the number of wells drilled by Verenex to 19 to 20 by year end 2008.
    Since the Company's first quarter results were released in early May
2008, three wells were drilled and cased, including the Company's second and
third new field wildcat ("NFW") exploration wells B1 and C1-47/04 in Block 4
in the northern part of Area 47 and a third appraisal well A4-47/02 on the
A1-47/02 oil discovery in Block 2 in the south. This increases the total
number of drilled and cased wells to 13. A 14th well G1-47/02 is currently
drilling.
    Flow testing of the A1-47/04 well, the Company's first NFW exploration
well in Block 4, was recently successfully completed and detailed results will
be released following review and approval by the Libya National Oil
Corporation ("NOC"). This is a significant result and confirms the potential
of a new Lower Acacus play fairway in the northern part of Area 47 and
provides the first positive results in the deeper Memouniat Formation. Flow
testing is currently underway on the A4-47/02 appraisal well.
    As announced previously, seven exploration and appraisal wells have
tested at a maximum aggregate rate of approximately 83,000 bopd and have been
suspended as potential future oil production wells. The testing results from
the A1-47/04 and A4-47/02 wells will increase this aggregate rate.

    A1-47/04 NFW Exploration Well Successfully Flow Tested

    The A1-47/04 NFW exploration well (well No. 10) was drilled and cased to
a depth of 10,400 feet in the Memouniat Formation. The Company recently
completed extended flow tests on the well from a total of 85 feet of
perforations in two intervals, including one interval in the Memouniat
Formation and one interval in the Lower Acacus Formation. The Company expects
to release these results shortly, concurrent with NOC confirmation of well
status.

    A4-47/02 Appraisal Well Currently Testing

    The A4-47/02 appraisal well (well No. 11), the third appraisal well on
the A1-47/02 oil discovery in Block 2 in the southern part of Area 47, was
drilled and cased to a depth of 10,380 feet. The well is located on a Lower
Acacus structure approximately 3.5 kilometres northwest of the A1-47/02 oil
discovery and 3.0 kilometres northeast of the A2 appraisal well.
    Logs and other formation evaluation results indicate that the A4 well
intersected a water oil contact in Basal Sand 1 in the Lower Acacus Formation
at the same subsea depth as the contact encountered in the A2 and A3 appraisal
wells. This sand was oil filled in the A1 discovery well. Oil properties and
pressure gradients are also aligned in all four wells.
    The results from the A4 well provide further confirmation of an oil
column height of at least 155 feet in Basal Sand 1 in a large structural and
stratigraphic trap that encompasses the A1, A2, A3 and A4 wells.
    Flow testing of Basal Sand 1 in the Lower Acacus Formation is underway
and testing of the shallower Aouinet Ouenine Formation is expected to follow.

    B1-47/04 NFW Exploration Well Drilled and Cased

    The B1-47/04 NFW exploration well (well No. 12) was drilled and cased to
a depth of 10,250 feet in the Memouniat Formation. B1 is the second well
drilled by Verenex in Block 4 in the northern part of Area 47 on a structure
defined by 3D seismic shot in 2007. The B1 well is located approximately 10
kilometres north of the Company's A1-47/04 indicated oil discovery and 1.0
kilometres northeast of the A1-61 well, which was drilled and abandoned in
1960 after encountering hydrocarbon shows in the Lower Acacus Formation.
    The B1 well was cased based on hydrocarbon shows while drilling and
open-hole formation evaluation results, which indicated the presence of
hydrocarbons in the Lower Acacus and the Memouniat Formations. However,
confirmation of well status and capability await testing results expected
later in the third quarter of 2008.

    C1-47/04 NFW Exploration Well Drilled and Cased

    The C1-47/04 NFW exploration well (well No. 13), the Company's third well
in Block 4, was drilled and cased to a final depth of 10,155 feet in the
Memouniat Formation. The C1 well is located on a structure defined by 3D
seismic shot in 2007 approximately 8.5 kilometres west of the B1-47/04 well.
    The C1 well was cased based on hydrocarbon shows while drilling and
open-hole formation results, which indicated the presence of hydrocarbons in
the Lower Acacus and the Memouniat Formations. However, confirmation of well
status and capability await testing results expected in the fourth quarter of
2008.
    The drilling and formation evaluation program for the C1 well was
accomplished with Ensign Rig 28 in 36 days establishing a new pacesetter time
for spud to rig release.

    G1-47/02 NFW Exploration Well Drilling

    The G1-47/02 NFW exploration well (well No. 14) is currently drilling
with KCA DEUTAG Rig T-19 to the Memouniat Formation after encountering
encouraging hydrocarbon shows in the Lower Acacus Formation. Target depth is
approximately 10,500 feet. The G1 well is the Company's second well in the
eastern part of Block 2 and is targeting a structure defined by 3D seismic
shot in 2007 approximately 6.5 kilometres northeast from the D1-47/02 oil
discovery.

    THIRD PARTY RE

SOURCE ASSESSMENT SUBMITTED TO NOC Verenex has provided the NOC with a third party assessment of the Company's discovered resources and undiscovered potential in Area 47 as prepared by DeGolyer and MacNaughton ("D&M") of Dallas, Texas. The Company expects to release the results of this study following NOC review. 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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