VPC Venture Prod.

RNS Number:1652P
Venture Production PLC
22 July 2005


22nd July, 2005

                             VENTURE PRODUCTION plc
                   ("Venture", "the Company" or "the Group")


          Venture Acquires Interests in Potential Kittiwake Satellites

Venture Production plc ("Venture"), the Aberdeen based UK independent oil and
gas production company, today announces that it has entered into an agreement to
acquire interests in two undeveloped discoveries to the east of the Kittiwake
platform, which it has operated since late 2003. The interests comprise a 50.00%
interest in Block 21/20b containing part of the Christian oil discovery and a
12.88% interest in Block 21/20a (excluding the Cook Field Area) which contains
the remainder of Christian and the entirety of the Bligh gas condensate
discovery. The interests are being acquired from Esso Exploration and Production
UK Limited.

The consideration comprises a cash payment of #575,000 upon completion plus
additional payments of (1) #575,000 when first commercial production is achieved
from the development of the Christian discovery and (2) #125,000 when first
commercial production is achieved from the development of the Bligh discovery.

The Christian discovery lies 7km to the east of the producing Venture operated
Mallard field and was discovered in 1990 by well 21/20b-4st2. A successful drill
stem test ("DST") was carried out at the time and a production rate of 6,364
barrels of oil per day ("bopd") achieved. Venture estimates that gross
recoverable P50 recoverable reserves are 7.1 million barrels of oil equivalent
("MMboe") and that a subsea tie-back to the existing Mallard sub-sea facilities
is a feasible development option. Initial gross production rates following
successful development are estimated by Venture to be 4,000 to 5,000 bopd. The
discovery is currently on the DTI Fallow Discoveries register and, upon legal
completion of this acquisition, it is Venture's expectation that the optimal
approach to bringing the reserves into production will be developed in
conjunction with the operator of Block 21/20b. The Christian accumulation is
believed by Venture to straddle both Blocks 21/20a and 21/20b.

The Bligh gas condensate discovery lies to the south east of Christian in Block
21/20b and was discovered in 1995 by the 21/20a-5 well. A DST flowed 2,750 bopd
of 45.6 degrees API condensate and 15.4 million standard cubic feet of gas per day
("MMscfpd"). Venture estimates that gross P50 recoverable reserves from either a
one or two well development are 10.8 MMboe and that a subsea tie-back to nearby
infrastructure is the most likely development solution.

Upon legal completion of both this acquisition and the recently announced
acquisition of Amerada Hess' 28.46% interest in Block 21/20a, Venture will hold
an approximate interest of 45.7% in the Christian discovery (assuming a 50:50
split of the accumulation between Blocks 21/20a and 21/20b). It will also hold a
41.3% interest in the Bligh discovery, which is assumed to lie wholly in Block
21/20a.

Legal completion remains subject to regulatory and customary DTI and partner
approvals.

Commenting on the news, Mike Wagstaff, Chief Executive said:

"These undeveloped discoveries lie very close to the Venture-operated Greater
Kittiwake Area production hub and, as such, we have been evaluating them for
some time. We now look forward to working with our prospective partners in both
new blocks to firm up the best development solutions for both Christian and
Bligh. Given our access to drilling rigs and subsea construction vessels, we
will be looking to move forward to develop these 'stranded' discoveries in short
order. We are delighted to be able to add to our development inventory in this
way and also to generate opportunities to further expand Kittiwake, our newest
production hub."

                                      ENDS
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                       01224 806600



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

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