VPC Venture Prod.

 

TIDMVPC TIDMCNA 
 
RNS Number : 8487X 
Venture Production plc 
21 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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| 21 August 2009                  | 
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| FOR IMMEDIATE RELEASE           |                                        | 
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The Board of Venture Production plc ("Venture") urges shareholders not to accept 
the offer by Centrica Resources (UK) Limited ("Centrica") for Venture (the 
"Centrica Offer") or to tender or sell their shares to Centrica 
 
 
The Board of Venture notes the announcement by Centrica correcting the 
actual level of acceptances it had received by the first closing date for its 
offer to a lower level. The Board also notes the announcement that the Centrica 
Offer has now been cleared by the European Commission under the EC Merger 
Regulation. Following this ruling the condition relating to the European 
Commission set out in Centrica's Offer has now been satisfied. 
 
 
The Board believes that the Centrica Offer should be seen in the context of 
Venture's strong operational and financial performance during the year to 
date and the recent improvement in both the equity markets and the commodity 
price environment. 
 
 
During the first half of 2009 Venture has: 
 
 
  *  Added materially to its reserves base, with five out of seven gas exploration 
  appraisal wells drilled being commercially successful 
  *  Increased production by 16% to 52,988 boepd (first half 2008 - 45,534 boepd) 
  *  Demonstrated the attractiveness and value of its portfolio with the conditional 
  agreement to divest certain of its assets to N.V. Nuon Energy at a value which 
  represents US$16.9 per proved and probable barrel of oil equivalent reserves 
 
 
 
Since the Centrica Offer was announced on 10 July 2009 the: 
 
 
  *  FTSE 250 Index has increased by 18.7% 
  *  Share prices of Venture's peer group have increased by an average of 20.6% 
  *  Forward oil prices for July 2011 have increased by 13.0% 
 
 
 
The Board continues to believe that this opportunistic offer substantially 
undervalues Venture and that Centrica should pay a higher price for control of 
the Company. The Centrica Offer does not fairly reflect the value of Venture's 
reserves - let alone the significant going concern value or the key strategic 
benefits that the Board believe Venture would bring to Centrica. 
 
 
The Board urges all shareholders not to accept the Centrica Offer or to tender 
or sell their shares to Centrica or its advisers. 
 
 
 
 
A copy of this announcement is available to view on Venture's website at 
www.venture-production.com. 
 
 
 
 
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 
 
 
The equity and commodity price increases are based on the movement between the 
relevant index or price as at the close of 20 August 2009 and at the close of 10 
July 2009, the date the Centrica Offer was announced. 
 
 
The bases of calculation and sources of information used to calculate these 
increases are outlined in the Venture circular dated 4 August 2009 and which is 
available to view on Venture's website at www.venture-production.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. 
 
 
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. 
 
 
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. 
 
 
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. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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