Verenex-Medco?s Libyan exploration well indicates multiple oil-bearing sandstone

Canadian firm Verenex Energy Inc said Thursday its first exploration well in Contract Area 47 onshore Libya had found indications of multiple oil-bearing sandstone reservoirs within the Lower Acacus Formation.

?However, until production testing is completed early in the first quarter of 2007 and producibility is confirmed, these interpretive results are considered preliminary,? Verenex said in a statement.

Verenex said the A1-47/02 well had reached intermediate casing depth of 10,300 feet. An extensive formation evaluation program is being carried out in the intermediate wellbore.

Once the evaluation program is completed, intermediate casing will be cemented in the well and drilling will resume to a planned final target depth of approximately 11,600 feet, Verenex said.

The company added that drilling, coring and logging operations in this formation are expected to be completed in late December.

Verenex operates the contract area with a 50 percent interest, while the balance is held by PT Medco Energi Internasional Tbk. (Robert)