Verenex, Medco to commence Libyan drilling Q1 2006

Calgary-based oil company Verenex Energy Inc. said on Monday that it, together with 50 percent partner JSX-listed oil firm PT.Medco Energi Internasional Tbk would commence drilling in Area 47 exploration permit in Libya early next year.

The company said in its quarterly release that the partnership had identified four drill-ready prospects, based on existing seismic and well control, for potential drilling in 2006.

?Discussions have been underway with a number of Libya-based drilling companies to secure at least one rig to commence drilling as soon apossible in the first quarter of 2006. An additional two prospects have been identified that could be drilled in the second half of 2006, contingent on early drilling success in Area 47 and availability of a second rig,? the company said.

It also said a seismic contract has been awarded to acquire 480 square kilometers of 3-D and 1,500 kilometres of 2-D seismic in Area 47. The program is targeted to commence in late December 2005 and proceed concurrently with drilling, with completion in the third quarter of 2006.

Verenex and Medco were awarded in February this year right to explore for oil and gas in Area 47, a 6,182 square kilometer area in the Ghadames Basin in northwest Libya. (alex)