Greater Kittiwake Area Fields

RNS Number:5061S
Venture Production PLC
26 November 2003


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

           Venture Announces Completion and Transfer of Operatorship
                      of the Greater Kittiwake Area Fields



Venture Production plc, the Aberdeen based UK independent oil and gas production
company, today announces that, together with Dana Petroleum plc ("Dana"), it has
completed the previously announced acquisition of and the transfer of
operatorship for the Greater Kittiwake Area ("GKA") Fields.

The GKA Fields were acquired from Shell UK Limited ("Shell"), the previous
operator, and from Esso Exploration and Production UK Limited ("Esso").
Pursuant to  an equalising transfer between Venture and Dana, each company now
owns a 50% interest throughout the GKA.

In addition, Venture as operator has  entered into two long term alliances in
respect of the operation of the GKA Fields.  Petrofac Facilities Management
Limited, a provider of integrated operations and facilities management in the
North Sea, will provide day-to-day operational management and associated support
services for the Kittiwake platform. Venture has also entered into a sale and
long term charter arrangement with Knutsen OAS to provide tanker offshore
storage and shuttle services.

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

"The completion of this acquisition and the transfer of operatorship to Venture
represents a significant and exciting step forward for the Company as Kittiwake
is our first operated manned platform in the UKCS, and we are looking forward to
applying the skills and experience we have acquired over the last three years as
a North Sea production operator.

"The GKA unit represents a significant growth for Venture and we are eager to
kick off the GKA development programme in early 2004.  The GKA assets acquired
from Shell and Esso, when coupled with the 21st Licensing Round awards to
Venture, now provide us with a significant operating unit made up of nine
blocks, covering an area of 1,290 km(2).  This unit contains two producing
fields, three undeveloped discoveries and a number of low risk undrilled
prospects."



                                      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:


*         Prior to this transaction Venture held a 23.76% interest in the
Mallard Field, and Dana held a 37.37% interest in the Goosander discovery. Shell
and Esso held the remaining interests between them. Through a separate
transaction, previously announced, Venture and Dana equalised their equity
holdings at 50:50 across the entire Greater Kittiwake Area.

*         This acquisition adds a third major asset to the Venture portfolio.
The total net Proved and Probable ('2P') reserves acquired by Venture are
estimated to be 11 million barrels of oil ("MMbo"), of which 4 MMbo are already
developed and producing.

*         The activity to develop the satellite discoveries, including
Goosander, is expected to commence with the acquisition of a new 3-D seismic
survey during early 2004.  After the results have been processed and reviewed a
detailed development plan will be prepared for further infield drilling on the
Kittiwake field and a series of tie-backs to the Kittiwake platform.  In
addition, work to prolong the life of the Mallard field through the drilling of
either a water injection well or a sidetrack from the existing well will be
planned.

*        The infield drilling planned for the producing Kittiwake and Mallard
fields is expected to add between 3,000 and 4,000 bopd net to Venture by 2005/6
over and above the production expected under the current operator's plan.  This
activity and the planned development of the satellites will postpone cessation
of production over the Kittiwake facilities well beyond the 2005 currently
envisaged.

*        An appraisal well drilled on Goosander in Summer 2001 indicated
recoverable 2P reserves of just under 10 million barrels and development of this
and the other satellite discoveries could add between 4,000 and 5,000 bopd net
to Venture within the 2005/6 timeframe.  In addition, the undrilled  Kaynine and
Lightning prospects provide further future upside potential.

*        In August 2003, Venture and Dana were jointly awarded four blocks in
the GKA as part of the 21st Licensing Round.

*         An innovative feature of this transaction is the approach taken to
abandonment of the acquired facilities. Shell will retain its share of the
current abandonment liability for Kittiwake and Mallard as well as
responsibility for managing the actual physical decommissioning activity,
whenever that should occur following the extension to end of field life expected
under the new operator. Venture and Dana, the new GKA partners, have put in
place the required security for that part of the decommissioning not covered by
Shell.




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