Verenex Energy Inc., Calgary, contemplates the southern part of 1.5 million acre Area 47 in Libya’s Ghadames basin as the core for an initial production phase of up to 50,000 b/d of oil by early 2010.
Two engineering firms are performing front-end engineering and design work on gathering, pipeline, and processing facilities. The company plans to incorporate the information into a commerciality application planned for early in the third quarter of 2008.
Because there has been no commerciality declaration, no reserves have been booked for Libya.
Since the company’s initial discovery on the block in 2006 in Silurian Lower Acacus, it tested five other discoveries in 2007 and is preparing to test an apparent discovery at the A1-47/04 wildcat drilled in early 2008.
Besides Lower Acacus, various of the wells have tested oil from the Middle Acacus, Ordovician Memouniat, and Devonian Aouinet Ouenine formations.
Two of the 2007 discoveries tested at aggregate flow rates above 23,000 b/d of oil. Six exploration wells and one appraisal well have tested at a combined rate of 83,000 b/d. The E1-47/02 discovery has not yet been classed as commercial.
Meanwhile, the company was preparing to test the A1-47/04 wildcat, its first well in the northern part of Area 47, in mid-May. This is Verenex’s third well to evaluate the Memouniat and based on logs the most encouraging to date. Two other prospects are prepared for drilling in the north.
Two rigs are working that will enable the spudding of 11-12 wells in 2008, four of which were spud by Apr. 30.
“The company is targeting to complete the full interpretation of results from the 2007 3D seismic program by the middle of 2008 and the 2008 2D program by the third quarter of 2008,” Verenex said.
Verenex Libya is operator of Area 47 with a 50% interest, and Medco International Ventures Ltd. holds the remaining 50%.
The 2008 work program and budget, approved in October 2007, is up to $158 million for the acquisition of 2,400 line-km of 2D seismic, drilling and testing 11-12 exploration and appraisal wells, additional casing and tubing inventory, and expenditures for front-end engineering and design for the early production system
Verenex is targeting to drill some 50 exploration and appraisal wells during the 5-year exploration phase of the EPSA contract. At the point at which commerciality is declared, a joint operating company would be established to build and operate the development scheme in which the Libyan National Oil Corp. would have a 50% working interest.