Verenex Positive Update on Libya Boosts its Share Price

07-05-2007

Verenex Energy Inc. shares got a boost Wednesday morning, climbing nearly 8% following the company's positive update regarding its exploration program in Libya.

Verenex said in a statement that Area 47 located in the North African country continues to yield excellent results. So far, two wells have been drilled and have tested light sweet crude oil at high rates, while a third is currently testing and a fourth has reached total depth and is logging.

The company added that the first well flow tested at 12,500 barrels a day and the combined measured flow from the second and third well should result in comparable or higher flow rates.

"Discoveries to date appear to be much higher than historical results would indicate as being likely." Canaccord Adams analyst Richard Wyman said in a note to clients, adding the early-stage test results suggest that Verenex is basing its exploration drilling on a different geological model than was used in the past.

As a result, he said the risk parameters and the size of potential discoveries used in his previous models, have been too conservative.