VPC Venture Prod.

    VENTURE PRODUCTION plc

20th January 2003

TRADING AND OPERATIONAL UPDATE

Venture Production plc (`Venture'), the Aberdeen based UK independent oil and
gas production company, issues the following pre-close period trading and
operational update ahead of the announcement of the Company's preliminary
results for the period ended 31 December 2002, which is expected to be made on,
or around, 25 March 2003.

Total oil and gas production for 2002 is expected to average approximately
8,200 barrels of oil equivalent per day ("boepd") (84% oil) and total sales
volumes is expected to average 9,350 boepd (86% oil). Annual revenues for 2002
are expected to total approximately �54 million. Production levels from all of
Venture's oil and gas assets continue to be in line with expectations and
current total production amounts to 8,800 boepd.

Larch

In order to both maximise the efficiency of the production well and to
undertake activity linked to the tie-in of Sycamore production, the Company
made several shut-downs at the Larch field in December which were brought
forward from the first quarter of 2003. This unexpected downtime led to a
reduction in December production of approximately 60,000 barrels and a
reduction in revenues of approximately �1.1 million. Following the shut-downs
the field is currently producing ahead of expectations at approximately 6,800
barrels of oil per day (Venture interest 56.9%).

Mallard

Whilst actual production of oil from the Company's Mallard field has been and
remains as expected, it was not possible to book all the associated revenues
during the period ended 31 December 2002. This was wholly due to the timing of
tanker liftings in December and, at 31 December 2002, it resulted in
approximately 80,000 barrels of produced oil awaiting lifting. This oil is now
expected to be lifted and sold in mid-February 2003 and, as a consequence, the
Company will recognise the revenues from this production in the first quarter
of 2003 at the prevailing oil price at that time. The associated operating
expenses have already been incurred and accounted for in the period ended
31 December 2002. The effect in 2002 has been to reduce revenues by around �1.4
million, with no compensating reduction in operating expenses, deferring these
revenues into the first quarter of 2003.

As a result revenues for 2002 will be adversely affected by these shortfalls.
Primarily as a result of the reduced sales at Larch and Mallard as described
above and the low cost nature of the affected production, these reduced sales
will result in overall pre-tax income for the year being approximately 20%
below consensus market expectations.

Sycamore

On the Venture operated Sycamore development in UKCS Block 16/12a the recent
window of calm weather in the North Sea has enabled the successful tow-out and
positioning of the subsea pipeline and manifold bundles for the field. This
represents successful completion of another significant milestone in the
Sycamore development project. Tie-in to the existing Birch manifold is expected
during the first quarter of 2003 and will enable production to come on stream
early in the second quarter. Once on stream, Sycamore is expected to change the
scale of Venture's oil production. Reaching this key milestone significantly
reduces the risk associated with a major component of the Company's growth in
2003 and 2004.

Commenting upon the successful Sycamore tow-out Bruce Dingwall, Venture's Chief
Executive, said, "When the Sycamore development comes on stream in the second
quarter of 2003 it will further demonstrate the significant value that can be
created through the identification and development of `stranded assets'. The
coming 12 months promise to be a landmark year for the North Sea in terms of
the changing ownership and operatorship of such assets, and we look forward to
identifying further opportunities to which we can apply our skills and energy".

For enquiries contact:

Bruce Dingwall            Chief Executive, Venture  01224 619000             
                                                                             
Mike Wagstaff             Finance Director, Venture 01224 619000             
                                                                             
Patrick Handley           Brunswick                 020 7404 5959            
                                                                             
Eilis Murphy              Brunswick                 020 7404 5959            

NOTES FOR EDITORS

The Company plans to announce its results for the year ended 31 December 2002
on, or around, 25 March 2003.

The Sycamore field is located in UKCS Block 16/12a (the `Trees' block), 150
miles north east of Aberdeen, in 111 metres of water. Existing fields on the
Block are Birch and Larch, both of which are subsea developments tied-back to
Marathon's Brae `A' platform, from where oil enters BP's Forties Pipeline
System.

Venture acquired Block 16/12a in April 2000 and by the end of that year had
successfully redeveloped the Larch field, increasing oil production from zero
to 14,000 barrels of oil per day (`bopd'). The new geological model employed by
Venture subsequently confirmed the existence of the Sycamore oil field in the
southern part of the Block - previously, it had been mapped as the separate
North Pine, Pine and Elm accumulations.

UK government approval to develop Sycamore was granted in May 2002. The
development programme comprises three Phases, which are expected to result in
three oil production wells and two water injection wells being drilled and
completed between 2002 and 2004. The wells, all of which will be subsea, will
tie-in to a new Sycamore manifold on the seabed that, in turn, will tie-in to
the existing Birch/Larch pipeline system via the 4.5 km pipeline bundle
manufactured by Subsea 7. Total development costs for the field are expected to
be approximately �90 million.

The Sycamore oil field is jointly owned by Venture and Marubeni Oil & Gas
(U.K.) Limited. Oil production is expected to peak at 20,000 bopd later in
2003, with total reserves being 24 million barrels of oil equivalent ('MMboe').
The decision to develop Sycamore was taken following the successful
re-development by Venture of the nearby Larch field in 2001.

The Sycamore field interests are as follows:

Venture Production Company (North Sea) Limited (Operator) 64.51%

Marubeni Oil & Gas (U.K.) Limited 35.49%



END

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