Verenex eyes commerciality in Libya's Ghadames

By OGJ editors
HOUSTON, May 8 -- Verenex Energy Inc., Calgary, contemplates the southern part of 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.

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 is preparing to test the A1-47/04 wildcat, its first well in the northern part of Area 47. 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.