Canadian oil producer Verenex has confirmed that it has made a new discovery in Libya.

The new find, which has also been announced by the Libyan National Oil Corporation, is located in the production Area 47, within the Ghadames Basin and, according to the two firms, represents confirmation of the resource potential of the Lower Acacus part of the region.

In addition, this discovery represents the seventh Verenex exploration testing positive for oil, with an average rate of around 90,000 barrels per day having been recorded.

News of the find comes as the company prepares to begin work on its fifteenth well in the Ghadames Basinand chief executive Jim McFarland has expressed his confidence that significant oil and gas resources are still to be located.

"It's kind of amazing," he said. "There are lots of those unexplored areas in Libya."

According to the US-based Energy Information Agency, Libya currently boasts the largest proven reserves in all of Africa, with the Tripoli government looking to increase oil production from the present level of 1.8 million barrels per day to three million barrels per day by 2013.

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