CALGARY, Sept. 8 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) announces that the board of directors of the Company has initiated
a process to identify, examine and consider a range of strategic alternatives
available to Verenex to maximize shareholder value.
Verenex has been a very successful explorer in Libya, which has proven to
be an attractive and welcoming country in which to invest and work. The
Company has established a world class resource base in Area 47 as confirmed by
an assessment prepared by DeGolyer and MacNaughton and disclosed on August 5,
2008. The Company's exploration and appraisal drilling program is proceeding
with two drilling rigs and tenders are under review for a third drilling rig.
Work is progressing on a commerciality application for an initial
development phase to be submitted to the Area 47 Management Committee and the
Libyan National Oil Corporation ("NOC") by the end of the third quarter of
2008. Preliminary discussions are also underway with a number of banks
concerning project financing for such a development.
The board of directors has therefore determined that it is an appropriate
time to assess the range of strategic options available to Verenex to maximize
shareholder value and has established an independent committee to supervise
this process. Standard Chartered Bank and FirstEnergy Capital Corp. have been
engaged as the Company's financial advisors. The NOC has been briefed by the
Company on this process.
No decision on any particular alternative has been reached at this time
and there can be no assurance that the process will result in any change in
the Company's current plan to aggressively explore and develop Area 47 in
Libya or that the Company will pursue any particular transaction. Verenex does
not intend to make any further announcement regarding the process unless and
until its board of directors has approved a specific transaction or other
course of action or otherwise deems disclosure of developments is appropriate.
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.
For further information:
For further information: Jim McFarland, President & CEO, Verenex Energy
Inc., Telephone: (403) 536-8009; Ken Hillier, Chief Financial Officer, Verenex
Energy Inc., Telephone: (403) 536-8005; Jonathan Newbon, Standard Chartered
Bank, Managing Director, Oil & Gas Corporate Advisory, Telephone: +44 (0)20
7632 1500; www.verenexenergy.com