CALGARY, March 11 /CNW/ - Verenex Energy Inc. ("Verenex" or the
"Company") (TSX - VNX) is pleased to report its unaudited interim operating
and financial results for the three and twelve month periods ended December
31, 2008.
Verenex is a Canada-based international exploration and production
company with a world-class discovered resource base and exploration portfolio
in the Ghadames Basin in Libya.
On February 26, 2009, the Company announced a definitive agreement
whereby a wholly-owned subsidiary of CNPC International Ltd. ("CNPCI") had
agreed to make an offer to acquire all the outstanding common shares of
Verenex by way of a take-over bid for C$10.00 per share in cash. Further
details can be found in the Company's February 26, 2009 press release and
associated filings on www.sedar.com.
2008 Highlights
Operations - Libya Area 47
- Drilled and cased seven new field wildcat ("NFW") exploration wells
and three appraisal wells in 2008, including three NFW exploration
wells in the fourth quarter, increasing the total well count to 17 by
the end of 2008.
- Announced four new oil and gas discoveries in 2008, increasing the
number of announced discoveries to nine by the end of 2008.
- Successfully flow tested eight wells in 2008, increasing the maximum
aggregate test rates to approximately 98,005 bopd of oil and
76.5 mmcf/day of natural gas (gross) by the end of 2008 from a total
of nine announced discoveries and two appraisal wells which are
suspended as future production wells.
- Shot and interpreted 2,494 kilometres of 2D seismic in 2008,
increasing the 2D seismic coverage to 4,200 kilometres, which
complements 1,707 square kilometres of 3D seismic shot by Verenex in
2006 and 2007.
- Announced DeGolyer and MacNaughton's ("D&M") September 30, 2008 best
estimate of gross contingent resources and risked mean estimate of
gross prospective resources totaling 2.15 billion barrels of oil
equivalent, which was up 36% from D&M's initial assessment at
February 1, 2008.
- Submitted the final appraisal report on the A1-47/02 Field to the
Area 47 Management Committee and the Libyan National Oil Corporation
("NOC") in November 2008 requesting a declaration of commerciality and
providing a preliminary development plan for a 50,000 bopd (gross)
Phase 1 development that also includes the nearby fields at B1, C1, D1
and F1-47/02.
- Further improved the excellent operations safety record in 2008 which
compares very favorably with the best of North American and
international drilling operations experience. One of Company's
contracted drilling rigs has worked for more than two years without a
lost time injury.
- In the first two months of 2009 announced the tenth oil and gas
discovery (H1-47/02), drilled and cased two NFW exploration wells
(K1 and L1-47/02), spudded a third NFW exploration well (M1-47/02) and
successfully flow tested two wells (I1 and J1-47/02) that are expected
to be announced as discoveries following NOC review. The maximum
aggregate test rates currently stand at 99,320 bopd of oil and
92.7 mmcf/day of natural gas from ten announced discoveries and two
appraisal wells, which will grow upon the announcement of I1 and
J1-47/02 results.
Area 47 Drilling & Testing Results
-------------------------------------------------------------------------
Well Well Year Well Total Format- Tested Tested Status(4)
Name No. Spud Type(1) Depth ions Maximum Maximum
(ft) Tested(2) Aggre- Aggre-
gate gate
Oil Gas
Rate(3) Rate(3)
(bopd) mmscfpd)
-------------------------------------------------------------------------
A1-47/02 1 2006 NFW 11,550 LA 12,500 2.9 Discovery
-------------------------------------------------------------------------
B1-47/02 2 2007 NFW 11,030 LA, MA 23,800 12.6 Discovery
-------------------------------------------------------------------------
C1-47/02 3 2007 NFW 9,900 LA, AO 23,570 10.4 Discovery
-------------------------------------------------------------------------
D1-47/02 4 2007 NFW 9,720 LA, MA 7,742 13.7 Discovery
-------------------------------------------------------------------------
E1-47/02 5 2007 NFW 9,639 LA 1,216 0.3 Discovery
-------------------------------------------------------------------------
F1-47/02 6 2007 NFW 10,300 LA 7,215 5.9 Discovery
-------------------------------------------------------------------------
A2-47/02 7 2007 Appraisal 10,400 LA 7,352 7.7 Intersected
WOC
-------------------------------------------------------------------------
D2-47/02 8 2007 Appraisal 9,850 LA Trace - At WOC(5)
-------------------------------------------------------------------------
A3-47/02 9 2008 Appraisal 10,500 LA Trace - At WOC(5)
-------------------------------------------------------------------------
A1-47/04 10 2008 NFW 10,400 LA, MEM 6,603 8.6 Discovery
-------------------------------------------------------------------------
A4-47/02 11 2008 Appraisal 10,380 LA, AO 2,490 2.1 Intersected
WOC
-------------------------------------------------------------------------
B1-47/04 12 2008 NFW 10,250 - - - Awaiting
testing
-------------------------------------------------------------------------
C1-47/04 13 2008 NFW 10,155 LA,MEM 1,305 10.3 Discovery
-------------------------------------------------------------------------
G1-47/02 14 2008 NFW 10,645 LA 4,167 2.0 Discovery
-------------------------------------------------------------------------
H1-47/02 15 2008 NFW 10,475 LA,MEM 1,315 16.2 Discovery
-------------------------------------------------------------------------
I1-47/02 16 2008 NFW 10,925 LA,MEM - - Tested
-------------------------------------------------------------------------
J1-47/02 17 2008 NFW 11,420 LA - - Tested
-------------------------------------------------------------------------
K1-47/02 18 2008 NFW 10,965 - - - Awaiting
testing
-------------------------------------------------------------------------
L1-47/02 19 2009 NFW 10,450 - - - Awaiting
testing
-------------------------------------------------------------------------
M1-47/02 20 2009 NFW 9,900 - - - Logging
-------------------------------------------------------------------------
Notes:
1. NFW (new field wildcat exploration well).
2. AO (Aouinet Ouenine), LA (Lower Acacus), MA (Middle Acacus),
MEM (Memouniat).
3. Maximum aggregate well rate as measured through choke sizes of
32/64ths to 128/64ths inches on particular reservoir intervals.
4. "Discovery" as classified by the NOC is based on "commercial
discovery" criteria under the 1955 Petroleum Law Regulations. Although
E1 discovered producible hydrocarbons, it is not as yet classified as
commercial discovery by NOC pending further appraisal drilling.
5. Temporarily abandoned as potential future water injection wells.
Financial
- Funds flow from operations in the fourth quarter of 2008 was
$0.4 million compared to $0.6 million for the fourth quarter of
2007. Funds flow for the full year 2008 was ($1.7) million compared to
$2.9 million in 2007.
- Net income in the fourth quarter of 2008 was $2.0 million compared to
$1.8 million in the fourth quarter of 2007.
