Verenex commences drilling in Libya
Verenex Energy Inc. is pleased to announce that its wholly owned subsidiary, Verenex Energy Area 47 Libya Limited, has commenced drilling the Company’s first exploration well in Libya, named A1-47/02, located in the southern part of Area 47. The well is being drilled by ODE Rig No.28 which is under a long term contract to Verenex.
The A1-47/02 well qualifies as the first of three commitment wells under the Exploration and Production Sharing Agreement for Area 47. It will test the crest of a structure defined with 3-D seismic shot by Verenex in the first quarter of 2006. It offsets a well (B1-70) drilled by Shell in 1962 approximately 1.2 kilometres to the northwest that found hydrocarbons in a flank position on the structure. The well will be drilled to a depth of approximately 11,600 feet. Estimated time to drill, core and log the well is approximately 90 days.
If the drilling results are successful, the Company intends to complete and production test the well utilizing a service rig operated by I.L.I. Corporation, a subsidiary of KCA DEUTAG Drilling GmbH, which is under a long term contract to Verenex.
“We are extremely excited about spudding our first well in Libya which is a significant milestone for the Company” stated Jim McFarland, President and CEO of Verenex. “Our drilling program, aimed at testing a large inventory of more than 30 prospects and leads in Area 47, is now firmly underway.”
Verenex is a Canada-based, international oil and gas exploration and production company with a world-class exploration portfolio in Libya and the Bay of Biscay offshore France.
This press release contains forward-looking statements, including but not limited to operational information. Operational projections 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 the oil and gas industry (e.g. operational risks in development, exploration and production; and, 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 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
Jim McFarland, President & CEO, Verenex Energy Inc., Telephone: (403) 536-8009 or Ken Hillier, Chief Financial Officer, Verenex Energy Inc., Telephone: (403) 536-8005
Source: Verenex Energy Inc.