CALGARY, Sept. 3 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to provide an update of its operational activities in
AREA 47 EPSA Contract Area Amended
As previously announced on August 5, 2008, the Libyan National Oil
Corporation ("NOC") advised that certain areas around pre-existing oil
discoveries at G1-NC02 and A1-NC3A located within or on the boundary of Block
2 in Area 47 are unavailable to Verenex for exploration and exploitation.
These discovery wells were drilled by AGOCO, a wholly owned affiliate of the
NOC, in 2003 and 1999, respectively. Accordingly, the Company has been in
discussions with the NOC to modify the contract area boundary in the
Exploration and Production Sharing Agreement ("EPSA") for Area 47 near these
wells and the parties have agreed to exclude approximately 59 square
kilometres or less than 1% from the original 6,182 square kilometre contract
area. Resources associated with these pre-existing discoveries were not
included in the recent DeGolyer and MacNaughton resource assessment.
An amendment to the EPSA to implement the change to the Area 47 boundary
was formally executed in Tripoli on September 3, 2008 by Verenex and Medco
International Ventures Limited executives and by the Chairman of the NOC.
Resolution of this issue has cleared the way to drill in adjacent areas
within Area 47 and the NOC has approved drilling of the I1-47/02 well located
approximately 6.5 kilometres south of the G1-NC02 oil discovery well.
I1-47/02 NFW Exploration Well Spudded
The I1-47/04 new field wildcat ("NFW") exploration well (well No.16) in
Block 2 was spudded on August 27, 2008 with KCA DEUTAG Rig T-19 and is
expected to be drilled to a total depth of 10,850 feet in the Memouniat
Formation. This is the first well to be drilled in the area covered by the
Central 3D seismic survey carried out in 2006. The well is targeting the Lower
Acacus Formation as a primary target. Drilling and formation evaluation
results are expected by the middle of October 2008.
H1-47/02 NFW Exploration Well Drilling After Lost Circulation Delays
The H1-47/02 NFW exploration well (well No.15) in Block 2 was spudded in
early August 2008 by Ensign Rig 28 and is currently drilling below 2,400 feet
after experiencing delays due to lost circulation problems in the shallow
section of the well. This lost circulation zone is now behind casing and
drilling is proceeding towards the target depth of 10,500 feet. Drilling and
formation evaluation results are expected to be available by the middle of
C1-47/04 NFW Exploration Well Successfully Flow Tested
The C1-47/04 NFW exploration well (well No.13) was drilled and cased to a
depth of 10,155 feet in the Memouniat Formation. The Company recently
completed extended flow tests on the well from a total of 48 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, following review by the NOC and confirmation
of well status.
This is the second well to be tested in Block 4 in the northern part of
Area 47. The A1-47/04 well was the first tested and was announced as a Lower
Acacus and Memouniat Formation oil discovery on July 28, 2008.
The KCA DETAG Service Rig 32 is preparing to move south to the G1-47/02
well in Block 2 to carry out flow testing.
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 and future exploration and development
plans. 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; the uncertainty of resource estimates; 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
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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