Verenex, Medco boost expenditure for Libyan project

Calgary, Canada-based Verenex Energy Inc. along with JSX-listed oil and gas firm partner’s PT Medco Energi International has announced a 25 percent increase to US$114 million from $91 million in budget in the 2007 capital expenditure for its Area 47 concession in Libya.

 

"As a result of the accelerated 3-D seismic program, faster-than-expected drilling times, successful drilling tests and evaluation and testing work, the Area 47 management committee has endorsed a higher budget outlook," Verenex said in a statement.

 

The money will be used for 3D surveys on 1,225 square kilometres, the drilling of  6.5 wells, six multi-zone flow tests, a workover and flow test on the suspended oil and gas discovery well A1-NC3A and additional casing and tubing inventory for the drilling program, Verenex said.

 

Survey work has commenced for 3D seismic program along the eastern side of Area 47. The program encompasses more than 20 prospects. The final 3D seismic program design indicates that the acquisition phase could be completed by late December 2007, Verenex said.

 

Meanwhile, the company said it had successfully completed flow tests from 312 feet of perforations in five reservoir intervals in the Lower Acacus and Middle Acacus Formations in its second exploration well B1-47/02.

 

The combined measured flow rate of light sweet crude oil exceeds the rate achieved in the company's first exploration well A1-47/02 due primarily to the greater perforated pay in the B1-47/02 well.

 

In late April, Verenex announced that final flow test results at the A1-47/02 well flowed 12,500 barrels of oil per day.

 

The company plans to release details of the flow test results on the B1-47/02 well subject to the approval of the NOC which is currently reviewing the test results.

 

Verenex is the block opertor with 50 percent working interest. The remaining interest in the block is held by MedcoEnergi.  (denny)