VPC Venture Prod.

RNS Number:9171O
Venture Production PLC
15 July 2005


                             Venture Production plc

                         Operational and Trading Update

                                 July 15th 2005

Venture Production plc ("Venture") today provides an operational and trading
update ahead of its Interim Results, which will be announced on
22nd September 2005.

Production

The first half of 2005 saw Venture's 2004/5 development programme delivering a
step change in production volumes. Average net daily production during the first
six months of 2005 was 24,250 barrels of oil equivalent per day ("boepd"). This
represents an increase of 35% over the comparable period last year and a 44%
increase over 2004 annual average production levels. As a result of development
projects already underway, this is expected to rise further to an average of
45,000 boepd during the fourth quarter.

As a consequence of the unexpected shut-in of all 'Trees' production during the
early part of the year, average production for the first quarter was limited to
13,300 boepd. However, with the reinstatement of 'Trees' production in early
February and the successful commencement of production from Venture-operated
Annabel and Gadwall fields, average production rose to 35,000 boepd during the
second quarter. Annabel and Gadwall represent important new field development
projects for Venture and were both successfully brought on stream in April.
Since then both of these fields have performed in line with expectations
enabling Venture to commit to the drilling of a second production well on
Annabel and a water injection well on Gadwall. Both these wells will be drilled
during 2005.

Operations

Venture is currently drilling three wells. The Noble Ronald Hoope jack-up rig
has started drilling the second production well on the Annabel field. It is
anticipated that this well will be completed during the third quarter with the
aim of bringing new gas production on stream ahead of the 2005/6 winter period.

The Sedco 704 semi-submersible drilling rig is drilling a new water injection
well in the Mallard field and the well is currently just above the anticipated
reservoir section. We have encountered some operational issues whilst drilling
this challenging well, which will delay its completion slightly with a resultant
impact on the timing of its contribution to increased production in 2005.
Nevertheless, the provision of more effective water injection support to the
Mallard production well remains an important component of production growth in
2005 and beyond.

Following agreement with Canadian Natural Resources Limited ("CNR"), the
operator of the Tiffany field located in block 16/17 immediately to the south of
the 'Trees' block 16/12a, Venture has recently commenced drilling the first well
of the South Sycamore development (SP-4) using the Tiffany platform rig. It is
anticipated that this will be completed in the fourth quarter. Whilst utilising
a platform well rather than drilling from a sub-sea location has accelerated
this project and reduced development costs, actual drilling commenced about one
month later than had been originally planned. This will slightly reduce the
well's impact on calendar 2005 production.

The recently drilled North Audrey development well (B5) intersected the
reservoir section as expected. However, the reservoir pressure was found to be
at the low end of the anticipated range and the well has not yet been brought on
stream.

The ConocoPhillips-operated Saturn development project (Venture 22.0%) remains
on schedule for first gas production in the fourth quarter of 2005. The jacket
was installed during June and the operator is currently drilling the first of
three planned production wells.

Significant progress has been made on the Venture-operated Goosander and
Chestnut oil development projects, which are on track to come on stream during
mid-2006 and mid-2007 respectively


In order to assure the continued delivery of Venture's North Sea development
programme, Venture recently entered into two significant new contracts. Firstly,
Venture has agreed a nine month extension to its existing contract for the Noble
Julie Robertson jack-up rig which is expected to come on contract to Venture in
early 2006. This extension will guarantee continuous access to drilling
equipment into the first quarter of 2007. In addition, Venture has entered into
a long-term partnership with Subsea 7, which secures services support for all of
Venture's sub-sea engineering and construction activities.


Outlook

The recently announced exit from operations in Trinidad together with the minor
delays in commencing key projects discussed above mean that full year average
production expectations have today been updated to between 30,000 and 32,000
boepd - an increase of 78-90% over 2004. For the full year 2005, Venture's
forecast earnings remain in line with our expectations. Venture anticipates
rising cashflow and profitability towards the end of the year as a result of
higher production volumes and favourable commodity prices.

Overall, Venture's development programme remains on track to exit 2005 at a
fourth quarter average production rate of 45,000 boepd from the UK and, based on
the current development programme, we expect production to increase to 55-60,000
boepd by the end of 2006 or early 2007.

END


Contact:

Mike Wagstaff, Chief Executive                                    01224 619000
Rod Begbie, Corporate Development Manager

Patrick Handley, Brunswick                                        020 7404 5959
Chris Blundell, Brunswick
Eilis Murphy, Brunswick

John MacDonald, Weber Shandwick (Scottish Press)                  01224 806600



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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