VPC Venture Prod.

RNS Number:5763Z
Venture Production PLC
09 June 2004



                             VENTURE PRODUCTION plc
                   ("Venture", "the Company" or "the Group")


                       ANNUAL GENERAL MEETING STATEMENT


Aberdeen 9th June 2004.


At today's Annual General Meeting in Aberdeen, John Morgan, Venture's Chairman,
made the following statement;

"I am pleased to report that during 2003 the Company continued its rapid growth.
Average annual production increased by 53% on 2002 to 13,310 barrels of oil
equivalent per day ("boepd"), and continuing favourable commodity prices
resulted in record financial performance for 2003. The Company completed five
acquisitions and in doing so has expanded its asset base from one to three
production hubs in the North Sea. These acquisitions have added considerably to
Venture's production and reserve base as well as substantially reducing risk
across the Company's portfolio.

The principal contributor to Venture's increase in production in 2003 was the
Trees Block, 16/12a in the North Sea. Production from the block increased
significantly with the Sycamore Field coming on stream ahead of schedule in
March. Production from one of the two initial wells declined faster than
anticipated but towards the end of 2003 had stabilised. The third well drilled
in the northern part of the field was suspended after encountering
non-productive oil bearing reservoir section. A water injection well will be
drilled in the second half of 2004 to optimise recovery from the central part of
the field with development options for the southern part of the field currently
under review for 2005. In early 2004, Venture increased its interest in the
Birch Field to 64.51% and in March the Company restarted production from the
second Birch well which had been shut-in for over three years. The two Birch
wells were brought back on stream at a combined gross rate of over 10,000 boepd.

In the gas basin production was up substantially as a result of new gas sales
arrangements on Ann and Alison and the successful work-over of an Ann well. Late
in 2003 Venture acquired the remaining interests in Ann, Alison and Audrey and
in doing so, became the operator of Audrey. Since year-end, Venture has entered
into new gas sales arrangements on Audrey, which will allow the Company to
increase production, and to invest in and develop the surrounding satellites
across the Audrey infrastructure. The first satellite, Annabel, was appraised by
Venture during 2003 and tested at flow rates in excess of 50 million cubic feet
per day. The jack-up drilling rig "Julie Robertson" has recently come on
contract to carry out work on Annabel prior to tie back via Audrey.

As recently announced, the Saturn development has moved rapidly towards
development with an agreement on unitisation resulting in Venture having a 19.56
% net interest in the field, higher than previously anticipated. The Saturn
development plan is currently under review by the DTI with approval anticipated
in the near future. First gas from Saturn is anticipated in the fourth quarter
of 2005.

Venture completed the acquisition of the Greater Kittiwake Area ("GKA") from
Shell and ExxonMobil late in 2003. This acquisition creates the third Venture
operated hub in the North Sea. GKA is the Company's first operated manned
platform and, as such, represents a major step forward in the Company's growth
and evolution. Investment in this hub will begin soon and involves a well
intervention campaign on the Mallard Field and the completion and tie back of
the Gadwall accumulation across the Kittiwake platform. Further tie backs are
currently being evaluated for the 2005/6 GKA work programme.

During the first quarter of 2004, Group production volumes were in line with
expectations at 19,357 boepd and, subject to the successful tie back of Annabel
and Gadwall during the fourth quarter, the Company should see production growth
towards the end of this year and into 2005, in line with plan.

The Board of Venture believes that the Company is well placed to aggressively
pursue its strategy through the development of its asset inventory. The
successful portfolio diversification in 2003 through the strategic acquisition
of a further two operated hubs not only provides further inventory but provides
the Company with a lower risk asset base from which to grow the business."




Enquiries

Venture Production Plc
Bruce Dingwall           01224 619000
Mike Wagstaff            01224 619000

Brunswick LLP
Patrick Handley          0207 404 5959
Eilis Murphy             0207 404 5959



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

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