RNS Number:4873C
Venture Production PLC
01 September 2004


1 September, 2004

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


                        Venture Secures 100% of 'Trees'
            and a Portfolio of New Development Assets from Marubeni

Venture Production plc ("Venture"), the Aberdeen based UK independent oil and
gas production company, today announces that it has entered into an agreement to
acquire interests in five UKCS blocks from Marubeni Oil and Gas (U.K.) Limited
("Marubeni"). These include the remaining equity interests in the
Venture-operated Birch (35.4%), Larch (43.1%) and Sycamore (35.4%) oil producing
fields (the 'Trees' fields) that it does not already own, as well as a portfolio
of undeveloped discoveries and exploration opportunities in the Central and
Northern North Sea.

As a result of the increase in its 'Trees' interests to 100%, Venture's net
production is expected to rise by an average of 4,000 barrels of oil equivalent
("boe") per day. Based upon estimates at 30 June 2004, Venture's Proven and
Probable reserves will increase by 10.4 million boe to a total of 116.3 million
boe.

In addition to the proven producing fields in Birch, Larch and central Sycamore,
Venture is also acquiring the remaining interest in the development of the
southern part of the Sycamore field and several other discoveries and prospects
within Block 16/12a. In the other four acquired blocks, Venture is gaining
interests in several non-operated discoveries and a number of exploration
opportunities. Work is currently underway to establish how best to realise the
potential value of these new assets, which are outwith Venture's existing
business hubs.

The total consideration for the acquisition will be $50 million (approximately
#28million) payable in cash, with an adjustment for net cashflows and working
capital in the period since the effective date of 1 July 2004. In addition,
Venture will pay Marubeni an overriding royalty on two undrilled exploration
prospects, Ash and Cedar located in Block 16/12a, in the event of successful
commercial development of either of the prospects. The additional production
assets bring with them a significant degree of incremental debt capacity and so
the immediate cash consideration will be wholly financed from Venture's existing
banking facilities. However, in light of the additional prospect inventory that
has been acquired, the Company is actively reviewing its longer term financing
requirements and capital structure. Legal completion of the transaction is
anticipated to take place during the fourth quarter of this year, subject to
normal regulatory and partner approvals and final corporate approval from
Marubeni Corporation.

Commenting on the news, Bruce Dingwall, Chief Executive said:

"With the recent successful rejuvenation of Birch and the stabilisation of
production from Sycamore, the 'Trees' area remains a key asset within Venture's
business. I am, therefore, delighted that we have reached agreement with
Marubeni to acquire their stake as they have proved an excellent partner in the
development of the assets thus far.

"In addition to adding significantly to current oil production and our
operational flexibility, this expansion of our interest in 'Trees' offers a
range of Block 16/12a growth projects in which to invest over the next several
years. We also relish gaining exposure to a fresh UKCS development and prospect
inventory as part of the package of acquired interests."


                                      ENDS
Contact:

Bruce Dingwall, Chief Executive                          01224 619000
Mike Wagstaff, Finance Director
Rod Begbie, Corporate Development Manager

Patrick Handley, Brunswick                               020 7404 5959
Eilis Murphy, Brunswick

Notes to Editors:


Block 16/12a ('Trees')



   * Venture is acquiring a 35.49049% interest in the Birch and Sycamore
    fields and a 43.13510% interest in the Larch field (the 'Trees' fields
    contained within Block 16/12a).

   * Venture entered the UKCS in 2000 through the acquisition of interests in
    and operatorship of the 'Trees' fields and, as a result of this transaction,
    now holds 100% of Block 16/12a.

   * The first Venture-operated rejuvenation project was to restore Larch
    production through the drilling of a new water injection well and this was
    successfully completed by May 2001. Following on from this, Venture
    completed a major geological re-interpretation of the potential to produce
    oil from the Pine and Elm accumulations. The result was a new field called
    Sycamore, the central portion of which was brought into production in March
    2003. A rig is under contract to drill a water injection well by the end of
    2004 to support the current two Sycamore production wells. The next phase of
    the staged investment in Sycamore will see the development of the Southern
    portion of the field in 2005/6.

   * The largest historical contributor within 'Trees' has been the Birch
    field and this was successfully returned to production in March 2004
    following an extended shut-in period. Birch is currently delivering over
    5,000 barrels of oil per day ("bopd") (averaged July to August 2004) at low
    marginal cost through the existing subsea 'hub' infrastructure.


Other Acquired Assets



   * As part of the acquisition Venture will also acquire the following
    non-operated working interests in the Central and Northern North Sea:


Block/Licence   License Ownership              (%)     Discoveries
22/22b          EnCana Corporation (operator) 38.0     22/22b-2 (Selkirk) (1991)
(Selkirk)       Venture Production plc        31.5
P.233           Noble Energy Europe           30.5
                
                
211/22a         Eni UK Limited (operator)     24.0     211/22-1a (1977)
P.201           Venture Production plc        39.2     211/22-3 (1984)
                Antrim *                      18.4
                CNR International             18.4

22/13a          Shell (operator)              62.0    22/13a-1(Bardolino) (1989)
P.096           Venture Production plc        25.0
                OMV (UK) Limited              13.0
                
                
22/16a          Paladin Resources plc (operator) 41.08
P.120           ExxonMobil                    22.33
                EnCana Corporation            21.25
                Venture Production plc        15.34

* transferred from ConocoPhillips on 30 July 2004



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

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