Verenex submits Final Appraisal Report and preliminary development plan for A1-47/02 Field in Libya

CALGARY, Nov. 11 /CNW/ - Verenex Energy Inc. ("Verenex" or the "Company") (TSX - VNX) is pleased to announce that it has submitted a Final Appraisal Report (the "Report") for the A1-47/02 Field to the Area 47 Management Committee ("MC") which includes representatives of Verenex, Medco International Ventures Limited and the Libyan National Oil Corporation ("NOC"). The Report recommends that the field be declared commercial as a first step in advancing a 50,000 bopd (gross) Phase 1 development project in the southern part of Area 47. Under terms of the Exploration and Production Sharing Agreement ("EPSA"), a declaration of commerciality by the Area 47 MC would clear the way to establish a Joint Operating Company ("JOC") with the NOC as a 50% partner to finalize the development plan and to execute the project.

The Report includes a comprehensive assessment of results from the A1-47/02 oil and gas discovery well drilled in late 2006 and three appraisal wells A2, A3 and A4-47/02 drilled over the 2007 to 2008 period and provides projections of reservoir performance under a range of depletion mechanisms, estimated recoverable resources, well performance profiles and development drilling requirements that will optimize oil and gas recovery over the life of the field.

The Report also presents a preliminary development plan, estimated costs and economics for a project that would include not only the A1-47/02 field as its core but also the nearby B1, C1, D1 and F1-47/02 oil and gas discoveries to comprise a multi-field project producing approximately 50,000 bopd (gross) of light sweet crude oil and 50 mmscfpd of natural gas. Verenex expects to submit final appraisal reports to the Area 47 MC for these additional fields by year-end 2008.

The Company believes that it is feasible to establish first oil production in 2011, subject to partner and NOC approvals and negotiation of transportation and marketing arrangements with the NOC and pipeline operators in the area. Preliminary development costs including facilities, gathering systems and sales pipelines are estimated to be in the range of US$800 to 850 million (gross). The Company's share of development costs is 25% under terms of the EPSA.

The Company is seeking a declaration of commerciality for the A1-47/02 Field and formation of a JOC as soon as possible in order to progress the Front End Engineering and Design work required to finalize the development plan for approval by the JOC.

Verenex is a Canada-based, international oil and gas exploration and production company with a world-class discovered resource base and exploration portfolio in the Ghadames Basin in Libya. Under the EPSA terms for Area 47, Verenex is the operator and holds a 50% working interest in the initial 5-year Exploration Period which reduces to 25% for any commercial developments retained in a subsequent 25-year Exploitation Period. These working interest levels reflect the Company's required share of capital funding during the periods. In any commercial development scheme, Verenex would fund 25% of capital expenditures and 6.85% of operating costs and receive an initial production allocation (free of all taxes and royalties) of 6.85%. A more complete description of the Area 47 contract terms is included in the Company's various filings on www.sedar.com.

This press release contains forward-looking statements, including but not limited to operational information and future exploration and development plans. These statements are based on current expectations and are subject to a number of risks and uncertainties that could materially affect the results. These risks include, but are not limited to: financing risks; geological risks; drilling risks; risks associated with obtaining regulatory approvals; oil and gas industry operational risks in development, exploration and production; the uncertainty of resource estimates; delays or changes in plans with respect to exploration or development projects or capital expenditures; the ability to attract and retain key personnel; the risk of commodity price and foreign exchange rate fluctuations; the uncertainty associated with negotiating with governments; and the risk associated with international activity. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the company's securities should not place undue reliance on these forward-looking statements.

Contacts

Jim McFarland
President & CEO
Verenex Energy Inc.
Telephone: (403) 536-8009 or Ken Hillier
Chief Financial Officer
Verenex Energy Inc.
Telephone: (403) 536-8005
www.verenexenergy.com