Venture Production PLC (VPC.LN) Wednesday posted a 1.1% fall in net profit for the first half as a big rise in output from new fields offset lower energy prices.

The company, which is subject to a hostile takeover bid from U.K. utility Centrica PLC (CNA.LN), emphasized the strong field development program and financial strength that it says will allow it to continue to thrive as an independent company.

"Our 2009-2010 drilling program has got off to an excellent start this year, with five out of seven wells drilled proving commercially successful, and we have made significant progress in moving our key development projects forward," said Chief Executive Mike Wagstaff.

Venture also has the financial strength to acquire additional assets, Wagstaff said. "Global economic conditions during the second half of 2008 and early 2009 coupled with the fall in commodity prices may provide the catalyst for major (oil companies) to dispose of their non-core North Sea assets," the company said in a statement.

The U.K.-based oil and gas producer said net profit for the six months ended June 30 totaled GBP54.1 million, compared with GBP54.7 million for first half of 2008. Venture's bottom line was affected by a one-off charge of GBP10.8 million related to development costs of the Andrea well and an extra GBP5.2 million in administrative costs from its defense against Centrica's hostile bid.

Total oil and gas production averaged 52,988 barrels a day in the first half, a rise of 16.4% from the first half of 2008. Maintenance shutdowns later in the summer will reduce output in the second half, but the company said it is on track for modest full-year production growth over 2008 levels.

At the end of the first quarter Venture's proven reserves were up 12% on the previous year to 240 million barrels of oil equivalent.

Total revenue for the first half was up 14.2% to GBP274.7 million from GBP240.5 million in the same period of 2008.

Diluted earnings per share were 35.0 pence compared with 35.2 pence in same period a year earlier.

Venture shares closed at 845 pence Tuesday, the same level as Centrica's bid for the company.

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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