Verenex, Medco commence Libyan drilling campaign

JSX-listed oil and gas firm Medco Energi Internasional Tbk. , together with partner and operator Canadian oil firm Verenex Energy had spudded its first exploration in Libya.

The company said in a drilling report filed with JSX Friday that the partnership had started drilling a well on September 29 in Area 47 concession. The well is planned to be drilled to the total depth of 11,600 feet with completion seen in 90 days.

Medco director Rashid Mangunkusumo said on August 1, 2006 that the partnership would drill 3 wells in Area 47 with planned investment of US$70 million.

The block was awarded to the partnership in 2005. According to Rashid, the block has already significant oil discoveries from previous operator. He estimated that recoverable oil from previous discovery could reach up to 60 million barrels of recoverable oil. ?According to the contract with Libyan government, the partnership could only tap the oil after spending certain amount of investment in exploration,? he said. He estimated that the discovery could be brought onstream in 2008-2009.

Verenex and Medco has equal share in the block. (alex)