Acquisition

RNS Number:2289O
Venture Production PLC
01 August 2003

1 August, 2003


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

        Venture Announces Acquisition of Additional 'A' Fields Interests
               and Award of New Licences in 21st Licensing Round


Venture Production plc, the Aberdeen based UK independent oil and gas production
company, has entered into an agreement to acquire First Oil's  ("First Oil")
interests in the Audrey, Ann and Alison producing gas fields.  Venture is
already operator of each of these fields. The interests to be acquired comprise
the 39.32% interest in Audrey and the 15.00% interest in Ann and Alison that
Venture does not already own.  This acquisition provides the Company with
further upside from its planned development of these Southern North Sea gas
producing assets and their associated near-field satellite prospects.


As a result of the increase in its 'A' Fields interests, Venture's net
production in the fourth quarter of 2003 is expected to rise by an average of
15.0 million cubic feet of gas ("MMcf") or 2,500 barrels of oil equivalent per
day ("boepd").



The total consideration will be #6.6 million payable in cash, with an adjustment
for working capital and net cashflow from the field in the period after the
effective date of 1st July 2003.  In addition, a deferred consideration of #0.7
million will be paid on first gas for sale from the Annie and Agatha satellites.
  Venture plans to start drilling the first of these step-out wells in the
fourth quarter of 2003.  The acquisition, which is expected to complete by the
fourth quarter, will add incremental proven and probable ("2P") reserves of 16.8
billion cubic feet ("Bcf") or 2.8 million boe net to Venture.



The purchase of these interests from First Oil represents the fourth North Sea
acquisition Venture has announced in 2003.  Following completion of this latest
transaction Venture's pro-forma 2P reserves will be 75.9 million boe, an
increase of 26.2 million boe or 53% since 31 December 2002.



Further, the Company is pleased to confirm that, jointly with Dana Petroleum, it
has been awarded the licences to develop four blocks adjacent to the Greater
Kittiwake Area ("GKA").  These blocks contain a number of undeveloped
discoveries and Venture will become operator of the entire GKA area upon
completion of the acquisition from Shell and ExxonMobil.  This is expected in
the fourth quarter.



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



"Today's acquisition further diversifies our asset portfolio and is another
natural step for the company.  Venture's strategy from day one has been to build
significant working interests in assets that we can operate.  Having first
bought into the 'A' Fields in November 2000, we know them very well and we now
have a significant grouping of under-exploited gas assets to get to work on.
The incremental volumes from the existing producing fields, together with the
satellite reserves to be accessed through step-out drilling, will be a major
component of Venture's growth over the next several years.  In addition, the
fresh acreage around the Kittiwake platform gives us greater potential upside
from the GKA acquisition we announced in April."



                                      ENDS

Contact:


Bruce Dingwall, Chief Executive                                     01224 619000
Mike Wagstaff, Finance Director                                     01224 619000

Patrick Handley, Brunswick                                         020 7404 5959
Eilis Murphy, Brunswick                                            020 7404 5959


Notes to Editors:


Field or Prospect (*)    Licence    Block                         Field          Pre-         Post-
                                                            Unitisation   acquisition   acquisition

Ann                        P.028    49/6a, 48/10a                     -        85.00%       100.00%
Alison                     P.028    49/11a (excl Audrey)              -        85.00%       100.00%
Annie/Agatha *
Audrey                     P.028    49/11a                       38.44%        77.78%       100.00%
                           P.130    48/15a                       61.56%        50.00%       100.00%



*        In November 2000, Venture agreed the acquisition of Phillips' interests
in the Ann, Alison and Audrey gas fields located in the southern sector of the
North Sea and in February 2001 it agreed to acquire TotalFinaElf's interests in
the same assets, all under Licence P.028.  These two acquisitions, which both
completed in September 2001, gave Venture an 85.00% interest in the Ann and
Alison fields and a 29.90% unitised interest in the producing Audrey field
(which straddles Blocks 49/11a and 48/15a).



*        The acquisition of First Oil's interests in Licence P.028 announced
today takes Venture's interest in Ann and Alison to 100%.



*        In May 2003 Venture increased its unitised interest in Audrey to 60.68%
by agreeing to acquire ConocoPhillips' 50.00% interest Block 48/15a under
Licence P.130.  The acquisition of First Oil's 50% interest in Block 48/15a
together with its 22.22% interest in Block 49/11 takes Venture's interest in
Audrey to 100%.



*        The Ann field was discovered in 1966 and started producing gas in 1993.
  It is tied back to LOGGS and controlled via one of the unmanned Audrey
platforms.  One of the two production wells (A-2) has recently been returned to
production at rates in excess of 20 MMscfpd and it is planned to drill an
additional in-fill well in 2004.



*        The Alison field was discovered in 1987 and started producing gas in
1995.  It is produced via a subsea template with one production well that is
tied back to LOGGS.



*        The Audrey field was discovered in 1976 and started producing gas in
1988.  It has been developed utilising two normally unmanned fixed platforms.
Production is processed and exported via the regional LOGGS gathering system and
gas is landed at the Theddlethorpe terminal in Lincolnshire.  ConocoPhillips, as
operator of LOGGS, provides all operating services for the Audrey facilities.



*        Through a total of seven acquisitions and a number of commercial
transactions, Venture has built its 'A' Fields position into a second North Sea
'hub' (the first being the 'Trees' Fields including Sycamore, Birch and Larch)
and has put itself in a position to invest in the rejuvenation of this gas basin
area.  Venture has an active development plan for the assets, and drilling
activity began in June 2003 with the successful return to production of the Ann
A-2 well and continued with the start of appraisal drilling on the Annabel
accumulation in early July.



*        In total, Venture's 'A' Fields interests have the potential to deliver
over 200Bcf of net gas reserves and net peak production of approximately 120
MMcfpd within the 2005/6 timeframe.



*        As a result of the 21st Seaward Licensing Round, Venture and Dana
Petroleum have jointly been awarded new style promote licences for Blocks 21/
13b, 21/16b, 21/17b and 21/18b.  This additional acreage provides further
potential for subsea tie-backs to the Kittiwake platform, a facility which
Venture will operate upon completion of the acquisition from Shell and
ExxonMobil (that was announced in April 2003).  These blocks contain a number of
undeveloped discoveries.



*        Venture is currently the operator of the following fields:



UK North Sea   :   Birch, Larch, Sycamore, Ann, Alison, Audrey, Pilot/Harbour,
                   Chestnut

Trinidad     :     Brighton Marine, Point Ligoure, Tabaquite, WD-13, WD-14



Upon completion of the GKA acquisition announced in April 2003, Venture is also
expected to become operator of the following fields:



UK North Sea       :               Kittiwake, Mallard, Gadwall, Grouse,
Goosander


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

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