U.K. independent oil and gas company Venture Production PLC (VPC.LN) Monday announced a farm-in to exploration acreage in the southern sector of the North Sea.

Under the terms of the agreement with PA Resources U.K. Ltd. (PAR.OS) and Spyker Energy S.A.S., Venture will pay 100% of the costs of a three-dimensional seismic survey to be commenced in September 2009 in exchange for a 60% working interest in U.K. continental shelf blocks 43/9, 43/10 and 44/6.

Following the farm-in, PA will hold a 32% working interest and Spyker will hold an 8% working interest in the same acreage. The seismic survey will be operated by PA with operatorship being transferred to Venture thereafter.

The initial focus of the seismic survey will be the Kennett lead which lies to the northwest of the large undeveloped Cygnus gas field in which Venture holds a 48.75% working interest.

"Following the success of both our 2009 appraisal wells on Cygnus we are very pleased to have the opportunity to expand our acreage in the adjoining area. The 3-D seismic information we plan to acquire will both enhance our understanding of Cygnus's regional setting and examine an exploration lead that could yield a 2010 exploration drilling target," said Venture Chief Executive Mike Wagstaff.

Venture is in the middle of trying to fend off a GBP1.3 billion hostile takeover bid from U.K. utility Centrica PLC (CNA.LN). The oil company has said Centrica's 845-pence-a-share offer substantially undervalues the company and its long-term growth prospects.

Centrica launched its bid for Venture last month. Through the deal, Centrica aims to gain access to Venture's gas reserves to reduce its reliance on volatile wholesale gas markets for supplies.

-By Selina Williams, Dow Jones Newswires +44 207 842 9262; selina.william,s@dowjones.com