Verenex, Medco strike oil in Libya

Canadian oil firm Verenex Energy Inc. confirmed on Tuesday oil discovery at its first exploration well in Libya, A1-47/02 in Area 47 in the Ghadames Basin, Libya

The company said it has completed the testing of an 82-foot interval at the base of the Lower Acacus Formation, the primary exploration target in this well, at a depth of approximately 9,980 feet and has achieved significant oil rates. The well was initially flowed over a three hour period at rates up to 5,172 barrels of oil per day through a 3/4 inch choke at a wellhead pressure of 1,221 pounds per square inch. An associated gas rate of 6.7 million cubic feet per day was also achieved during this test. The oil discovered in this interval is light sweet crude with a measured API gravity of approximately 46.5 degrees.

Testing is underway on up to three additional intervals in the Lower Acacus Formation. The Company anticipates that this testing program could extend into mid-March, it said.

Verenex is the operator and 50 percent interest in Area 47, with JSX-listed oil and gas company PT.Medco Energi Internasional Tbk. holding the remaining balance.(alex)