Trading Statement

RNS Number:0569O
Venture Production PLC
29 July 2003



Venture Production plc

29 July 2003


                                  Trading Update

Venture Production plc ('Venture'), the Aberdeen-based UK independent oil and
gas production company, issues the following update ahead of the Company's
interim results for the period ended 30 June 2003, which will be announced on 18
September, 2003.

Production

Overall production during H1 2003 has been in line with expectations a around
13,400 barrels of oil equivalent per day ("boepd").

As a result of certain factors described below, production for the full year is
now likely to be below the bottom end of Venture's publicly stated range. The
latest expectation is for 2003 production to fall in the range 15-16,000 boepd.
This reduction in expectation arises almost entirely due to a production
shortfall for Q3 against our previous forecast. We currently anticipate average
production to be around 12,000 boepd in Q3. However, due to the impact of the
new North Sycamore well and the anticipated timing of legal completion of
acquisitions announced earlier this year, we expect to exit the year with an
average production rate in respect of Q4 in excess of 21,000 boepd. This would
be more than twice the rate for the same period last year and almost three times
the rate at the beginning of 2003.

Two factors give rise to this reforecast. First, the late arrival of both our
contracted offshore drilling rigs, something entirely outwith our control, has
led to a delay in drilling both the North Sycamore production well and the Annie
and Agatha appraisal wells. This issue is now resolved with North Sycamore
drilling underway and the rig for the southern North Sea drilling programme
under contract to Venture and currently drilling the Annabel appraisal well.

The second factor is the underperformance we are currently seeing in one of the
two Phase 1 Sycamore production wells. We are investigating the causes and
planning remedial action, potentially making use of one of the rigs already on
contract. Given that the other initial Sycamore well is performing as
anticipated and that other wells in the 'Trees' area have historically exhibited
similar behaviour, our expectations for gross recoverable reserves from Sycamore
as a whole remain unchanged at 24 million barrels of oil equivalent ("boe").

All other assets owned and on stream at the start of the year are performing in
line with expectations.

Drilling Activity

The development inventory already in place will enable Venture to maintain its
rapid organic growth. In 'Trees' we expect to achieve first oil from the new
North Sycamore production well in October. The 'A' Fields drilling campaign has
started well with the return to production of the Ann A2 well. We are currently
drilling the Annabel appraisal well and expect to drill the Annie and Agatha
step-out wells immediately afterwards.

Acquisitions

Through a series of targeted acquisitions Venture continues to make significant
progress in diversifying its earnings and expanding its development inventory.
The Audrey and Greater Kittiwake Area ("GKA") acquisitions, scheduled to
complete in Q3 and Q4 respectively, will together add around 5,000 boepd to the
production rate for Q4 and beyond. In addition to this new production these
deals bring additional inventory of in-fill drilling and satellite tie-back
projects, entirely in line with our strategy for acquisitions.

Financial Implications

The lower production rates now being forecast will have a consequent impact on
revenues, cashflow and earnings. Notwithstanding the shortfall in Q3 production
volumes, Venture expects the split in full year 2003 profitability to be heavily
weighted towards the second half of the year. First half profitability will be
impacted by the expensing of the Ann A2 workover completed in June and a higher
deferred tax rate than that forecast for the full year.

We continue to take advantage of attractive commodity market conditions,
recently locking in an oil price of $24.55 per barrel for 3,000 barrels of oil
per day throughout calendar year 2004.

Bruce Dingwall, Venture's Chief Executive, said:

"Notwithstanding the recently observed lower flow-rates from one of the Phase 1
wells, the Sycamore project has had a successful beginning with the third of a
planned five well development programme currently being drilled. The Sycamore
project has always been planned as a phased development in order to give us the
flexibility to optimally place and design wells in line with new data as it
arises. We remain on course to achieve our short-term goal of doubling the scale
of the business by the end of the year.

"Already in 2003 we have taken significant steps in expanding and diversifying
our asset portfolio, improving both the quantum and quality of our future
earnings and cashflow. We are now less reliant on one or two key wells or a
single export route and our business in the UKCS is now spread across three
geographically independent hubs. The development inventory already in place
means we are well positioned to have changed the scale of the business again by
the end of 2004, even without further acquisitions."

ENDS

For further information contact:

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

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



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