Verenex confirms oil discovery in Libya

    CALGARY, July 28 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to confirm an oil discovery at A1-47/04 in Area 47 in
the Ghadames Basin in Libya. This discovery is the Company's first in Block 4
and is a significant result, confirming the potential of a new Lower Acacus
play fairway in the northern part of Area 47 and providing the first positive
results in the deeper Memouniat Formation. The Libyan National Oil Corporation
("NOC") has also announced this discovery.
    The A1-47/04 new field wildcat exploration well is located approximately
28 kilometres north of the Company's nearest oil discovery at D1-47/02 in
Block 2 and was drilled and cased to a depth of 10,400 feet in the Memouniat
Formation. The Company carried out extended flow tests on the A1 well from a
total of 85 feet of perforations in two sandstone intervals, including a
39 foot interval in the Memouniat Formation and a 46 foot interval in the
Lower Acacus Formation. These tests yielded a combined maximum measured flow
rate, as restricted by test equipment capability, of approximately 6,603 bopd
(gross) of light sweet crude oil and 8.6 mmcf/day (gross) of natural gas
through choke sizes on particular intervals ranging from 44/64ths to 96/64ths
inch. Measured API gravity of the crude oil ranged from 39 to 49 degrees.
    At the request of the NOC, and consistent with earlier test protocols,
flow rates were also measured through a smaller more restrictive choke size of
32/64ths inch which yielded combined oil and gas flow rates of 2,934 bopd and
5.5 mmcf/day, respectively, from the two intervals as shown below.

    A1-47/04 Flow Test Rates at 32/64ths Inch Choke Size

      Depth at  Perforated Restricted Oil Rate  Gas Rate  Flowing     Oil
       Top of    Interval    Choke     (bopd)  (mmcf/day) Wellhead  Gravity
    Perforations  (feet)      Size                        Pressure (degrees
       (feet)               (inches)                       (psia)     API)
       10,189       39      32/64ths    1,399     4.70     1,333       49
        8,045       46      32/64ths    1,535     0.78       567       39

    To-date, seven exploration wells and one appraisal well have tested at a
maximum aggregate rate of approximately 90,000 bopd and have been suspended as
potential future oil production wells.
    The combined maximum measured flow test rates described above are not
necessarily indicative of the ultimate production rate and may be lower in any
commercial development, which will be determined from reservoir engineering
studies that constitute part of the appraisal and development planning
activities currently underway.

    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

    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,

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