VPC Venture Prod.

 

TIDMVPC 
 
RNS Number : 5311V 
Venture Production plc 
13 July 2009 
 

13 July 2009 
 
 
VENTURE PRODUCTION plc 
Marram Well Result and Andrea Drilling Update 
Venture Production plc ('Venture'), the Aberdeen-based UK independent oil and 
gas company, today provides an update on recent drilling activity in the east 
Irish Sea and the southern North Sea. 
 
 
Marram Appraisal Well (Venture 70%) - East Irish Sea 
 
 
The Marram appraisal well, which was spudded on 1 July 2009 using the Ensco 92 
jack-up rig, has proven gas in the eastern part of the field. The well reached a 
total measured depth of 2,020ft on 9 July 2009 and encountered a gross gas 
column of 469ft within the Ormskirk Sandstone. Down hole samples were taken to 
confirm the gas quality and the initial analysis indicates that the gas quality 
is within the pre-drill expectation range. A preliminary assessment of the well 
results indicates that the gas in place ('GIIP') volume is also within the 
pre-drill range of expected outcomes. The nitrogen content in the down hole 
samples is material but other fields in the same area have been successfully 
developed despite having high nitrogen content and processing facilities already 
exist in the local infrastructure. A final evaluation will be completed over the 
next few weeks and potential development options are being reviewed. 
 
 
The Marram well was designed to appraise the eastern section of the Marram gas 
discovery made in 1993. Venture holds a 70% interest in the field which is 
located in blocks 110/4 and 110/9b in the Morecambe Bay area of the East Irish 
Sea. The discovery lies on trend with both the producing Hamilton and Lennox 
fields, and is close to the Morecambe field complex. The blocks in which Venture 
has an interest also have exploration prospectivity and contain up to six 
additional Sherwood sandstone exploration leads. The well was operated by 
Senergy on Venture's behalf. 
 
 
Andrea Exploration Well (Venture 100%) - Southern North Sea 
 
 
The Andrea well 48/15b-10 commenced drilling from the Noble Julie Robertson 
jack-up drilling rig on 6 June 2009 and entered the reservoir 60 feet high to 
prognosis on 10 July 2009 confirming gas bearing sands. The well was designed to 
test a Leman sandstone and cores are currently being taken to confirm reservoir 
quality, prior to drilling to total depth ("TD") and testing the well. 
 
 
Andrea, which is located in the 'A' Fields production hub, has the potential to 
be Venture's largest discovery to date with pre-drill recoverable resource 
expectations of between 3 and 44 million barrels of oil equivalent ('MMboe'). 
Although reservoir quality needs to be proven before any resources could be 
deemed commercial, confirmation of gas bearing sands eliminates the primary 
'trap effectiveness' risk and it is anticipated that within approximately two 
weeks the remaining critical information required to confirm estimated 
recoverable resources will be available. 
 
 
At 31 March 2009, in its total proven and probable reserves of 240 MMboe, 
Venture had no booked reserves associated with either Marram (contingent 
resources) or Andrea (prospective resources). In addition, this figure did not 
take into account the impact of either the successful second Cygnus appraisal 
well or the successful Kew appraisal well. 
 
 
Commenting on the news, Mike Wagstaff, Chief Executive said: 
 
 
"As the largest holder of net exploration acreage in the UK North Sea, the 
continuing success of our 2009 drilling campaign underlines the breadth of the 
exploration and appraisal opportunities in our portfolio. Following extensive 
seismic re-processing activity on the Andrea prospect we're delighted that we 
have confirmed further potential gas resources in our core 'A' Fields hub. On a 
risked basis the Andrea well was one of the top opportunities in our 2009/10 
drilling programme and the information so far is extremely encouraging. With the 
opportunity being so close to existing infrastructure, rapidly unlocking the 
value of any discovery should be relatively straightforward. We will provide a 
further update as soon as the remaining well evaluation data is acquired. On 
completion at Andrea the Noble Julie Robertson will move to the East Annabel 
extension well, also within the 'A' Fields hub, targeting another substantial 
low risk opportunity. 
 
 
As well as the encouraging news from the 'A' Fields, confirmation of gas in the 
eastern section of the Marram field and the potential for a commercial 
development is also a positive result and one that validates our 2008 entry 
acquisition to the east Irish Sea. We now look forward to our nearby Whitbeck 
exploration well, the next activity in the Ensco 92 rig campaign." 
 
 
Ends 
 
 
 
Contacts: 
 
Mike Wagstaff, Chief Executive 
Peter Turner, Finance Director 
Jonathan Roger, Chief Operating Officer 
Rod Begbie, Corporate Development Director 01224 619000 
 
 
Patrick Handley, Brunswick 020 7404 5959 
John MacDonald (Scottish Press) 07770 886912 
 
 
Notes to editors: 
 
 
Marram 
  *  The Marram field lies in blocks 110/4 and 110/9b in the East Irish Sea. 
  *  The Marram gas discovery was made in 1993 by Ranger (well 110/4-1). 
  *  Venture agreed a farm-in deal with Hannu Exploration Limited in January 2008. 
  *  The pre-drill net recoverable resource expectations were between 3 and 14 
  million barrels of oil equivalent ('MMboe'). 
 
 
 
Andrea 
  *  The Andrea discovery lies in block 48/15b in the 'A' Fields production hub in 
  the southern North Sea. 
  *  Venture announced 100% ownership of the 'A' Fields in December 2003. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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