Verenex submits Final Appraisal Report and preliminary development plan for A1-47/02 Field in Libya

    CALGARY, Nov. 11 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company")
(TSX - VNX) is pleased to announce that it has submitted a Final Appraisal
Report (the "Report") for the A1-47/02 Field to the Area 47 Management
Committee ("MC") which includes representatives of Verenex, Medco
International Ventures Limited and the Libyan National Oil Corporation
("NOC"). The Report recommends that the field be declared commercial as a
first step in advancing a 50,000 bopd (gross) Phase 1 development project in
the southern part of Area 47. Under terms of the Exploration and Production
Sharing Agreement ("EPSA"), a declaration of commerciality by the Area 47 MC
would clear the way to establish a Joint Operating Company ("JOC") with the
NOC as a 50% partner to finalize the development plan and to execute the
    The Report includes a comprehensive assessment of results from the
A1-47/02 oil and gas discovery well drilled in late 2006 and three appraisal
wells A2, A3 and A4-47/02 drilled over the 2007 to 2008 period and provides
projections of reservoir performance under a range of depletion mechanisms,
estimated recoverable resources, well performance profiles and development
drilling requirements that will optimize oil and gas recovery over the life of
the field.
    The Report also presents a preliminary development plan, estimated costs
and economics for a project that would include not only the A1-47/02 field as
its core but also the nearby B1, C1, D1 and F1-47/02 oil and gas discoveries
to comprise a multi-field project producing approximately 50,000 bopd (gross)
of light sweet crude oil and 50 mmscfpd of natural gas. Verenex expects to
submit final appraisal reports to the Area 47 MC for these additional fields
by year-end 2008.
    The Company believes that it is feasible to establish first oil
production in 2011, subject to partner and NOC approvals and negotiation of
transportation and marketing arrangements with the NOC and pipeline operators
in the area. Preliminary development costs including facilities, gathering
systems and sales pipelines are estimated to be in the range of US$800 to 850
million (gross). The Company's share of development costs is 25% under terms
of the EPSA.
    The Company is seeking a declaration of commerciality for the A1-47/02
Field and formation of a JOC as soon as possible in order to progress the
Front End Engineering and Design work required to finalize the development
plan for approval by the JOC.

    Verenex is a Canada-based, international oil and gas exploration and
production company with a world-class discovered resource base and exploration
portfolio in the Ghadames Basin in Libya. Under the EPSA terms for Area 47,
Verenex is the operator and holds a 50% working interest in the initial 5-year
Exploration Period which reduces to 25% for any commercial developments
retained in a subsequent 25-year Exploitation Period. These working interest
levels reflect the Company's required share of capital funding during the
periods. In any commercial development scheme, Verenex would fund 25% of
capital expenditures and 6.85% of operating costs and receive an initial
production allocation (free of all taxes and royalties) of 6.85%. 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 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 or Ken Hillier, Chief Financial Officer,
Verenex Energy Inc., Telephone: (403) 536-8005,

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