VPC Venture Prod.

RNS Number:7847W
Venture Production PLC
22 March 2004

Monday 22nd March 2004



                             VENTURE PRODUCTION plc

                   ("Venture", "the Company" or "the Group")



                Venture Announces Successful Restructuring of

                         Audrey Gas Sales Arrangements



Venture Production plc, the Aberdeen based UK independent oil and gas production
company, today announces that it has signed an agreement to restructure the gas
sales arrangements with British Gas Trading, a subsidiary of Centrica plc, the
buyer of gas production from the Audrey field. This will result in the
termination of the current 'life of field' gas sales contracts with effect from
1st April.



Gas production from Audrey will continue to be sold to Centrica. Once the new
arrangements take effect, a base volume of Audrey production will be sold under
terms which correspond to those under the old 'life of field' contract. Venture
will be able to sell additional volumes of the gas it produces from the 100%
owned Audrey field at spot market related prices.



The new gas sales arrangement provides both the flexibility to optimise
production from the field and an incentive to invest in rejuvenation and field
life extension. Following its assessment of the field's potential, Venture's
forward plan envisages several low risk workovers on Audrey production wells,
together with in-fill drilling and the tie back of near field satellite
discoveries of which the first is Annabel.



Commenting on the new agreement, Bruce Dingwall, Venture's Chief Executive said:



"The new gas sales arrangements for Audrey represent a true 'win-win' solution
for both parties. Venture is positioned to release significant volumes of '
stranded' gas reserves in Audrey on attractive commercial terms. At the same
time, we provide our gas buyer with continued price and volume security and the
opportunity to share in some of the upside of future development activity.



"The renegotiation of the Audrey gas sales arrangements represent another
important step in building Venture's 'A' Fields hub. Over the last three years
we have built a significant North Sea gas business which is poised for rapid
growth. We are well placed to benefit from the favourable supply-demand dynamics
in the UK gas market which have resulted in improved gas pricing and which we
anticipate to continue for the foreseeable future."



Contact:


Bruce Dingwall Venture Production plc              01224 619 000
Chief Executive

Mike Wagstaff
Finance Director

Patrick Handley       Brunswick Group LLP                 020 7404 5959
Eilis Murphy



Notes to Editors



*       Gas from Audrey is currently and will continue to be sold to
        Centrica.



*       As a result of the new gas sales arrangements, Venture will be able
        to:

          -         Increase field production from existing wells;

          -         Invest in the field; thereby

          -         Increasing recoverable reserves and extending field life.



*       Venture entered the southern North Sea ("SNS") in 2001 through the
        acquisition of interests in the Audrey, Ann and Alison gas fields.



*       Venture has built its SNS business through seven acquisitions, four
        major commercial transactions and participation in four wells over the 
        period 2001-2003.



*       Venture is the operator and 100%owner of Audrey, Ann, Alison and
        Amanda and operator and 88.89% owner of Annabel.



*       As a result Venture now has interests in seven fields:

          -         Three in production (Audrey, Ann and Alison)

          -         Four near term developments on stream by 2006 (Annabel, 
                    Saturn, Argo and Amanda)



*       At the end of 2003, total net proved and probable gas reserves
        amounted to 224 Bcf.



*       Current production is 60-70MMcfpd (10-11,000 boepd) representing
        over 50% of Venture's current production. This has the potential to 
        increase to approximately 200 MMcfpd over the next several years.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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