CALGARY, March 20 /CNW/ - Verenex Energy Inc. ("Verenex" or the
"Company") (TSX - VNX) is pleased to provide the following update on its
drilling and testing operations in Libya.
A1-47/02 Oil Discovery Testing Completed
The Company has completed the testing at its first exploration well in
Libya and successful oil discovery, A1-47/02 in Area 47 in the Ghadames Basin.
The KCA DEUTAG Service Rig 32 has been released from the well and is being
mobilized to the B1-47/02 well location.
On February 6, 2007 the Company and the Libyan National Oil Corporation
("NOC") announced the A1-47/02 well as an oil discovery. At the time, testing
results from an 82-foot interval at the base of the Lower Acacus Formation at
a depth of 9,980 feet were released. This interval flowed over a three hour
period at rates up to 5,172 barrels of oil per day (gross) through a 3/4 inch
choke at a wellhead pressure of 1,221 pounds per square inch. An associated
gas rate of 6.7 million cubic feet per day (gross) was also achieved during
Final testing results on several other intervals in the A1-47/02 well are
under review by the Company and the NOC.
B1-47/02 Well Completed and Will Be Tested
The Company has also completed an extensive wireline logging, coring and
formation evaluation program involving down-hole fluid sampling and pressure
measurements at its second exploration well B1-47/02 in Area 47. Based on
these results, the well was cased to its total depth of 11,030 feet.
Service Rig 32 will begin production testing of selected zones in late
March as soon as the drilling rig has been moved from the well location.
Testing could extend into late May.
Until producibility is confirmed by this flow testing program, well
results and status are considered preliminary.
The well was drilled, cored, logged and cased in 62 days compared to a
target of 85 days and 87 days for the Company's first well A1-47/02. A revised
casing program to deal with potential lost circulation intervals, more
extensive use of PDC drilling bits and down-hole motors to increase
penetration rates, and the growing experience of the drilling crew all
contributed to this improved performance.
C1-47/02 Approved as Third Exploration Well
The Company has received NOC approval for its third exploration well
C1-47/02 which is expected to commence drilling with ODE Rig 28 by early April
2007. The C1-47/02 well is located approximately 7.5 kilometres southeast of
the B1-47/02 well and will test a separate structure defined on high quality
2D seismic shot by Verenex in 2006. The primary exploration target is the
Lower Acacus Formation.
The well is expected to be drilled to a depth of approximately 9,900 feet
and qualifies as the third and final minimum commitment exploration well under
the Exploration and Production Sharing Agreement ("EPSA") for Area 47.
Estimated time to drill, core, log and case the well is approximately 80 days
(including a contingency allowance).
Offset Operator Reports Oil Discovery
The Company notes that the NOC announced on March 12, 2007 that its 100%
owned affiliate AGOCO had made a major oil discovery in Block NC4 which is
adjacent to the eastern boundary of Area 47. The well was tested at a rate of
15,933 barrels of oil per day from the Middle and Lower Acacus Formations. The
area of the discovery is approximately 37 kilometres northeast of the B1-47/02
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