VPC Venture Prod.

RNS Number:4177A
Venture Production PLC
18 July 2007


                               VENTURE PRODUCTION


                         Operational and Trading Update

                                18th July, 2007


Venture Production plc ("Venture" or "the Company") today provides an
operational and trading update ahead of the announcement of its Interim Results
which will be announced on 18th September, 2007.


Group Production and Outlook

Average Group net daily production for the first six months of 2006 was 42,160
barrels of oil equivalent per day ("boepd"), just over 3% below the comparable
period in 2006. Strong field performance from Annabel, Saturn and Goosander was
offset by higher than anticipated downtime on GKA due to exceptionally poor
weather and a damaged tanker loading hose in April, delay in the start-up of
production from the Chiswick field and a delay in gas 'blow down' within the
Birch field reservoir.

During the first half of 2007, the benefit of Venture's strong underlying
reservoir performance was limited by operational events largely beyond the
Company's control. However, the last few months has seen a period of strong
production performance and facilities uptime with production currently running
at approximately 50,000 boepd. With the addition of new production from fields
due on stream in the second half of the year, we expect to exit 2007 with
production rates in excess of 60,000 boepd. Revised guidance for average Group
production for full year 2007 is between 46,000 and 48,000 boepd representing a
4% reduction in and a narrowing of our previous guidance range of 47 - 51,000
boepd.


Operations

In the first half of 2007 Venture continued to pursue its active development
programme across its North Sea business. During the period three new wells were
drilled and completed and one new field was brought on stream. Today Venture has
four active mobile drilling units, three of which are operated.


'A' Fields

Strong production performance has continued from Venture's southern North Sea
'A' Fields gas production hub, particularly from the Annabel and Saturn fields.
In June, the Mimas field (Venture - 15.0%) was brought on stream as a satellite
to the Saturn production facilities. Venture is currently drilling the Channon
exploration well (Venture - 53.0%) with initial well results anticipated within
the next month. After drilling the Channon well, the Noble Julie Robertson
jack-up drilling rig will move on to drill the Agatha exploration well (Venture
- 66.7%).


Greater Markham Area ("GMA")

During the first half of 2007, production from the Markham area has been boosted
by the commissioning of the Markham compression tower ("CT"). In June, the Noble
Kolskaya jack-up drilling rig commenced drilling the Chiswick Gamma well, the
second development well in the field. Venture is planning to hydraulically
fracture the first Chiswick production well in late July or early August with
first gas production from the field now expected in early September.


Greater Kittiwake Area ("GKA")

Production from the GKA hub was adversely affected by poor uptime availability
of the tanker loading and export system due to weather conditions over the 2006/
7 winter. The accidental damage to the tanker loading base in April further
interrupted normal production. This was partially offset by continued strong
reservoir performance, particularly from Goosander which has continued to
produce materially ahead of expectations. The recent focus on development
activity on GKA has been the construction and installation of the new export
pipeline between the Kittiwake platform and the Forties Pipeline System. The
pipeline has now been successfully laid and the project remains on schedule and
budget to be completed during the early part of the fourth quarter. The new
pipeline is expected to substantially improve operational uptime, lower overall
operating costs and allow GKA field life to be extended. In addition, Venture is
planning to spud an appraisal well on the Grouse oil field during the third
quarter which, if successful, is expected to lead to the field coming on stream
in 2009.


'Trees'

'Trees' production (Venture - 100.0%) has been steady during the first half of
2007. The Birch oil field has produced steadily but the gas 'blow-down' of the
reservoir has not yet occurred. It is inevitable that this natural change in
production characteristics will happen and at some point significantly more
associated gas will start to be produced, thus raising the overall field
production rates. However, as the gas produced from Trees is all sold offshore
at a high discount to benchmark market prices in order to benefit from lower oil
transportation costs, the economic impact of this higher production is limited
and so its absence, to date, has a minimal impact on profit.


Other Central North Sea

Field development activity in the central North Sea has focused on the Chestnut
field (Venture - 69.875%). The new Sevan 300 floating production unit, the
Hummingbird, is undergoing installation and commissioning of the production and
support facilities in Rotterdam. The project remains on track for tow out later
in the year with first oil anticipated by year end.

The Noble Ton van Langeveld ("NTvL") semi-submersible drilling rig spudded the
Pilot heavy oil field appraisal well (Venture - 70.7%) in late June and results
from this well are expected later this month. After drilling the Pilot well, the
NTvL will move to drill an appraisal well on the Narwhal heavy oil discovery
immediately to the south of Pilot in Block 28/2a. Following Narwhal the NTvL is
expected to move on to drill the Millburn appraisal well.


Financial Performance

The reduction in commodity prices experienced in the early part of 2007 resulted
in Venture receiving less sales revenue for its oil and gas production in
comparison with the first half of 2006. However, this adverse impact was
partially offset by the oil and gas price hedges in place. Financial performance
and operating costs were in line with expectations and our forecast for 2007
capital expenditures remains in the range of #200 - #230 million excluding costs
associated with the GKA pipeline or any additional acquisitions.


                                      ENDS


Contact:

Mike Wagstaff, Chief Executive
Jon Murphy, Chief Operating Officer
Marie-Louise Clayton, Finance Director
Rod Begbie, Corporate Development Director                          01224 619000

Patrick Handley, Brunswick
Chris Blundell, Brunswick                                          020 7404 5959

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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