VPC Venture Prod.

 

TIDMVPC TIDMCNA 
 
RNS Number : 8644W 
Venture Production plc 
04 August 2009 
 

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| NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN,   | 
| INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A          | 
| VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.                     | 
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| 4 August 2009                   | 
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| FOR IMMEDIATE RELEASE           |                                        | 
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Venture Production plc announces the posting of its independent asset valuation 
circular to shareholders and advises shareholders to reject Centrica Resources 
(UK) Limiteds ('Centrica) offer ('Centricas Offer or the 'Offer) 
 
 
The Board of Venture Production plc ('Venture') announces that it is today 
posting a circular to shareholders ('Circular'), which contains an independent 
valuation of Venture's assets by Resource Investment Strategy Consultants 
('RISC'). 
 
 
 
 
Mike Wagstaff, Chief Executive of Venture said: 
 
 
"RISC's independent asset valuation, which is equivalent to a base case value of 
1,066p per share and an upside value of 1,385p per share, clearly supports our 
view that Centrica's Offer does not fairly reflect the value of Venture's 
reserves - let alone the significant going concern value or the key strategic 
benefits that we believe Venture offers to Centrica. 
 
 
The upside valuation also underlines the significant additional potential 
available from Venture's existing asset base. We have the financial strength and 
technical and operating expertise already in place to continue to unlock this 
upside within our portfolio. 
 
 
We continue to believe that Centrica's Offer is opportunistic, taking advantage 
of uncertainty and weakness in the equity and energy markets earlier in the 
year. These markets have now improved significantly. 
 
 
Since the date of Centrica's Offer announcement on 10 July 2009, the FTSE 100 
index has risen by 13.5% and the share prices of Venture's UK E&P peers have 
risen by 17.2%, on average. Centrica's Offer is now at a 9% discount to 
Venture's share price after adjusting for the average peer group share price 
movement since 17 March 2009, the day prior to Centrica's announcement of its 
initial acquisition of shares in Venture. 
 
 
Furthermore, since Centrica's Offer announcement, Brent oil forward prices for 
July 2011 have risen by 13.2% and gas prices for the 2011 calendar year have 
risen by 5.5%. With medium term rising production, Venture is ideally positioned 
to benefit from these rising prices." 
 
 
John Morgan, Chairman of Venture commented: 
 
 
"The independent RISC valuation clearly supports your Board's view that 
Centrica's Offer substantially undervalues Venture. Even the 1,066p per share 
base case is more than 25% higher than Centrica's Offer. 
 
 
My message to shareholders remains clear - do not sell your shares on the cheap 
to Centrica. Venture is worth substantially more than 845p per share. 
 
 
Shareholders should not sign any document which Centrica or its advisers send to 
them." 
 
 
 
 
Further information for shareholders, including bases of calculation, sources 
for the information set out above and definitions of the terms used above, is 
contained in the circular being posted today and which will be available later 
today on www.venture-production.com and is available for inspection at: 
 
 
Orrick, Herrington & Sutcliffe 
Tower 42, Level 35 
25 Old Broad Street 
London EC2N 1HQ 
 
 
Enquiries: 
 
 
+-----------------------------------------------+--------------------------+ 
| Venture Production plc                        | Telephone:               | 
| Mike Wagstaff, Chief Executive                | +44 122 461 9000         | 
| Brunswick                                     | Telephone:               | 
| Patrick Handley                               | +44 207 404 5959         | 
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Notes to the editors 
 
 
RISC was founded in 1994 to provide independent advice to companies associated 
with the oil and gas industry. RISC now has approximately 40 highly experienced 
professional staff at offices in London and Australia. They have completed over 
1000 assignments in 55 countries for nearly 400 clients. RISC's services cover 
the oil and gas business lifecycle: 
 
 
- Oil and gas asset valuations, expert advice to banks for debt or equity 
finance 
- Exploration / portfolio management 
- Field development studies and operations planning 
- Reserves assessment and certification / Independent Expert / Expert Witness 
- Strategy and corporate planning / Gas market advice 
 
 
Further information about RISC can be found at www.riscpl.com 
 
 
 
 
The Directors of Venture accept responsibility for the information contained in 
this announcement. To the best of the knowledge and belief of the Directors, who 
have taken all reasonable care to ensure such is the case, the information 
contained in this announcement is in accordance with the facts and does not omit 
anything likely to affect the import of such information. 
 
N M Rothschild & Sons Limited, which is authorised and regulated by the 
Financial Services Authority in the United Kingdom, is acting as financial 
adviser to Venture and no one else in connection with the offer and will not be 
responsible to anyone other than Venture for providing the protections afforded 
to clients of Rothschild or for providing advice in relation to the contents of 
this announcement or the matters referred to in the Circular. 
 
Lambert Energy Advisory Limited, which is authorised and regulated by the 
Financial Services Authority in the United Kingdom, is acting as financial 
adviser to Venture and no one else in connection with the offer and will not be 
responsible to anyone other than Venture for providing the protections afforded 
to clients of Lambert Energy Advisory Limited or for providing advice in 
relation to the contents of this announcement or the matters referred to in the 
Circular. 
 
UBS Investment Bank, is acting as financial adviser and broker to Venture and no 
one else in connection with the matters set out in this announcement and will 
not be responsible to anyone other than Venture for providing the protections 
afforded to clients of UBS Investment Bank or for providing advice in relation 
to the contents of this announcement or the matters referred to in the Circular. 
 
Oriel Securities Limited, which is authorised and regulated by the Financial 
Services Authority in the United Kingdom, is acting as financial adviser and 
broker to Venture and no one else in connection with the matters set out in this 
announcement and will not be responsible to anyone other than Venture for 
providing the protections afforded to clients of Oriel Securities Limited or for 
providing advice in relation to the contents of this announcement or the matters 
referred to in the Circular. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 OUPUUUMGRUPBGCC 
 

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