VPC Venture Prod.

RNS Number:9889F
Venture Production PLC
03 December 2004


3 December, 2004

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


     Venture Updates on Current Production and Asset Development Operations

Venture Production plc ("Venture"), the Aberdeen based UK independent oil and
gas production company, today provides an update on the impact of the shutdown
of the Brae 'Alpha' platform, current production rates and progress on the
Company's asset development operations.

Impact of Brae 'Alpha' Shutdown

Due to a gas leak on the Brae 'Alpha' platform operated by Marathon Oil UK
("Marathon"), production from the Birch, Larch and Sycamore ("Trees") wells was
shut-in on 27 November and has not yet been restarted. The Marathon
investigation team has identified the cause and is working to isolate the
precise location of the gas leak. Both companies are seeking to repair the leak
and restore production as quickly as possible. The leak appears to be solely
related to a multi-service line used to transport chemicals and lift gas from
the Brae 'Alpha' platform to the 'Trees' subsea infrastructure.

At this point it is difficult to estimate exactly how long 'Trees' will remain
shut-in, however, it is anticipated to be at least several weeks. At the time of
the shut-in the 'Trees' wells were averaging 12,800 barrels of oil equivalent per
day ("boepd"). Venture has customary insurance in place to cover both
restoration costs as well as business interruption. If the wells were to remain
shut-in until the end of December the impact upon 2004 calendar year average
production would be around 1,200 boepd.

Current Production

As the workover and maintenance programme on Venture's 'A' Fields gas wells
nears completion, the Company's total production for November, prior to the
shut-down of 'Trees', was averaging 22,800 boepd, the highest monthly average in
the Company's history.

The southern North Sea gas rejuvenation activity, carried out by the Noble Julie
Robertson rig that is now off contract, has taken somewhat longer than
anticipated and has resulted in longer than expected periods of well shut-ins.
However, the benefits are now showing through and well deliverability from
Venture's southern North Sea gas wells was in excess of 50 million cubic feet
per day ('MMcfpd') (net) in November.

Asset Development Operations


In line with previous guidance, Venture's current project development activity
remains on-track to deliver a step change in production rates during the first
quarter of 2005.


The semi-submersible Transocean 704 rig, which is on contract to Venture until
mid-2006, is nearing the end of drilling activity on the Central Sycamore water
injection well. This project is expected to complete in January 2005 and the new
pressure support that will be provided to the Sycamore reservoir is anticipated
to result in an additional 5 - 7,000 boepd (net) during the first half of 2005.

Once operations have been completed on Central Sycamore, the Transocean 704 will
move on to carry out the re-entry and completion of the Gadwall discovery well
as a producer. This additional production is expected to come on stream at
around 6 - 8,000 boepd (gross) in the second quarter of 2005. Venture is
currently mobilising a diving support vessel ("DSV") to undertake the subsea
construction and tie-in work ahead of the arrival of the drilling rig.

Finally, the offshore construction activities to tie-back the Annabel gas
production well continue on schedule and first gas is anticipated during early
March at around 80 MMcfpd and the pipe lay phase is currently underway.

Commenting on the latest developments, Mike Wagstaff, Chief Executive said:

"Venture's overall production growth rate remains unchanged despite the current
short term interruptions. Our development programme is in line with previous
guidance and we remain confident of more than doubling average production during
2005. Provided that there is no extended shut-in of 'Trees', we reaffirm our
previous 2005 guidance and we anticipate exiting next year at a production at a
rate of 45,000 boepd during the fourth quarter."

                                      ENDS

Contact:

Mike Wagstaff, Chief Executive 01224 619000

Rod Begbie, Corporate Development Manager

Patrick Handley, Brunswick 020 7404 5959


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

END
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