CORRECT: Venture CEO: Centrica Will Have To Pay More

Centrica PLC's (CNA.LN) need for Venture Production PLC's (VPC.LN) gas resources is so great that it can and will have to pay higher than 845 pence per share to take control of the company, Venture's Chief Executive Mike Wagstaff told Dow Jones Newswires Monday.

"By going so public, so hostile and so aggressive...they have emphasized how desperately they need us," said Wagstaff. "They need this gas, it's critical to them...they can pay more and shareholders should hold out for more."

Centrica has built up a stake of almost 30% in Venture and so far investors holding just over 10% of Venture's shares have rejected the bid and demanded a higher price. Wagstaff declined to comment if more shareholders were holding out for a higher price, but said that the initial rejection from Venture's board Friday was made in consultation with investors.

"We have been in touch with shareholders...we understand what they're thinking and their views on value and an acceptable price," he said.

Centrica's argument that Venture is exposed to falling gas prices is merely an attempt to scare shareholders, Wagstaff said. Gas prices are expected to rise in the long term and Venture is still growing its resource base, he said.

Venture announced encouraging preliminary results from drilling on the Andrea gas field in the North Sea Monday. The field is important because it could potentially add 20% to Venture's existing gas reserves and is located close to existing gas infrastructure, Wagstaff said. The company will release more information on the field's reserves in two weeks.

Company Web site: http://www.vpc.co.uk

-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com

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