Verenex provides update on discussions with Libyan Authorities



    CALGARY, Aug. 25 /CNW/ - Verenex Energy Inc. ("Verenex") (VNX - TSX)
announces the status of its discussions with representatives of the General
People's Committee (the "GPC") of Libya in connection with the proposed sale
of Verenex.
    As previously disclosed, Verenex entered into an acquisition agreement
with CNPC International Ltd. ("CNPCI") on February 24, 2009 (the "CNPCI
Agreement") under which CNPCI agreed to make an offer to purchase all of the
outstanding Verenex Shares, on a fully-diluted basis, at a price of Cdn$10 per
share and to also fund a Cdn$47 million approval bonus to the Libya National
Oil Corporation (the "NOC"). Consent by the NOC to the offer by CNPCI is
required under the Exploration and Production Sharing Agreement for Area 47
(the "EPSA"); however, under the terms of the EPSA, such consent cannot be
unreasonably withheld.
    While the outside date under the CNPCI Agreement (August 24, 2009) has
now passed, the CNPCI Agreement has not yet been terminated by either party to
the agreement.
    Despite Verenex having complied with all the requirements of the EPSA and
the NOC throughout the public sale process, the NOC has continually failed or
refused to provide consent to the proposed sale of Verenex. The GPC has made
it clear to Verenex that it is seeking to negotiate a reduced purchase price.
In accordance with the dispute mechanism under the EPSA, Verenex has finalized
and is ready to file an arbitration claim should it become necessary to pursue
this legal remedy. However, Verenex and Libyan authorities are presently fully
engaged in discussions to reach an amicable solution to the current impasse on
the sale of Verenex without Verenex having to pursue its legal remedies.
    Verenex understands that the Government of Canada has again expressed its
concerns to the Government of Libya respecting the actions, and lack of
action, by the NOC and the GPC in connection with this matter.
    Investors are cautioned that there can be no assurance that consent to
the offer by CNPCI will be received from Libyan authorities, or that a sale
transaction will be concluded on the terms contemplated or at all.


    Forward-Looking Information and Statements

    This press release contains forward-looking statements respecting
possible actions by the Company. 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:
risks associated with obtaining regulatory approvals; the uncertainty
associated with negotiating with governments; the risks and uncertainties
associated with Verenex seeking legal remedies available under the EPSA
contract such as arbitration, and the risks 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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