Venture Production Share Discussion Threads

[exmooroil] 22/8/2009 14:23

Where does this leave Venture then:



"As announced by the European Commission today, the proposed acquisition of Venture pursuant to the Offer has been cleared. As a consequence, the restrictions contained in Rule 5 of the City Code on Takeovers and Mergers (the "Code") relating to the acquisition of Venture Shares no longer apply to Centrica Resources.

Centrica Resources has today acquired 2,606,049 Shares, representing approximately 1.7 per cent. of the existing issued share capital of Venture, at 845 pence per Share. "

Centrica now owns 31.6% of the issued share capital.

[fatfin] 22/8/2009 10:40

Bounty your board. Could you please change SBE for HAWK as they have now been "bought out" by the Russians.

Still holding and actually added more at 836 the other week. My view is that Centrica will get as many as poss. in the offer and then chase the rest in the market. This will raise the value of venture and drop the value of centrica. Perhaps overly simplistic but once they hold most they can pay more for the rest?

Fatfin

[phillis] 22/8/2009 08:37

# The Offer is now conditional solely on Centrica Resources having received acceptances in respect of Shares which, together with Shares acquired before or during the Offer, will result in Centrica Resources and any person acting in concert (within the meaning of the Code) with Centrica Resources holding Shares carrying more than 50 per cent. of the voting rights of Venture.

...but we shall have to wait until 14 Septemebr

[spob] 21/8/2009 16:59

21 August 2009 , 15:33

The Board of Venture Production plc ("Venture") urges shareholders not to accept
the offer by Centrica Resources (UK) Limited ("Centrica") for Venture (the
"Centrica Offer") or to tender or sell their shares to Centrica

The Board of Venture notes the announcement by Centrica correcting the
actual level of acceptances it had received by the first closing date for its
offer to a lower level. The Board also notes the announcement that the Centrica
Offer has now been cleared by the European Commission under the EC Merger
Regulation. Following this ruling the condition relating to the European
Commission set out in Centrica's Offer has now been satisfied.

The Board believes that the Centrica Offer should be seen in the context of
Venture's strong operational and financial performance during the year to
date and the recent improvement in both the equity markets and the commodity
price environment.

During the first half of 2009 Venture has:

* Added materially to its reserves base, with five out of seven gas exploration
appraisal wells drilled being commercially successful
* Increased production by 16% to 52,988 boepd (first half 2008 - 45,534 boepd)
* Demonstrated the attractiveness and value of its portfolio with the conditional
agreement to divest certain of its assets to N.V. Nuon Energy at a value which
represents US$16.9 per proved and probable barrel of oil equivalent reserves

Since the Centrica Offer was announced on 10 July 2009 the:

* FTSE 250 Index has increased by 18.7%
* Share prices of Venture's peer group have increased by an average of 20.6%
* Forward oil prices for July 2011 have increased by 13.0%

The Board continues to believe that this opportunistic offer substantially
undervalues Venture and that Centrica should pay a higher price for control of
the Company. The Centrica Offer does not fairly reflect the value of Venture's
reserves - let alone the significant going concern value or the key strategic
benefits that the Board believe Venture would bring to Centrica.

The Board urges all shareholders not to accept the Centrica Offer or to tender
or sell their shares to Centrica or its advisers.

[bountyhunter] 21/8/2009 07:46

CNA can't even get the level of acceptances right...



the level of acceptances claimed was incorrect! it was in fact even lower than originally claimed

[ludlow3] 20/8/2009 11:21

have now sold my last 5500shres and added more cna with it and a dive off them on 23rd sept of 3.66p a share

[losos] 20/8/2009 10:35

zingaro - "although there was just a faint hint of resignation........................"It's business as usual until it isn't."

Hmmmmmmm interesting, I don't think Mr. Waqgstaff will need to worry about getting another job. (Assuming he might need to start looking)

[togo2] 20/8/2009 10:11

What happens to shareholders who have accepted centricas offer if it does not go unconditional?Does the deal become void?

[o1lman] 19/8/2009 12:58

u know there are specialist companies who buy in the market to sell on to the bidder, re satnav I wouldn't, should imagine your dad may want to join me, depending on how long he's been in the car with u.

[phillis] 19/8/2009 12:38

they are not allowed to, remember?

anyway will plug the Humber Bridge coordinates in to the satnav....

[o1lman] 19/8/2009 12:34

that is quite in order Phillis although judging on the volume over the last few days they will not be getting them thru the market.

[phillis] 19/8/2009 12:19

I am travelling up the M18 on Monday(Yorkshire v Warwickshire at Scarborough with my dad)and could easily make a small diversion...

Would it be OK to post then that all CNA need is another 9.25% to go unconditional?

[o1lman] 19/8/2009 12:10

There isn't much point in debating, this all comes down IMO to CNA capitulating and agreeing the price with MW and the board.
If this bid fails and they come back with another hostile bid that will fail also as I imagine VPC will give access to the books to a White Knight with a view to an agreed takeover.
Please don't mention that if CNA get 50.1% they will have control as u will be responsible for me jumping off the Humber Bridge.
With reference to the White Knight I can only repeat what I posted earlier, boring I know, that VPC doesn't want to be taken over by anyone, so why would they introduce a White Knight if they don't have to.

[phillis] 19/8/2009 11:51

Oil
Shall we continue our debate as we await the out come on 28/8?

First - there is no sign of a white knight. Nobody is going to come charging in unless they take out a frustrated CNA who really don't want to pay more.
Second - if the bid fails CNA will just sit on their hands for a few months and will then decide whether to increase their offer.

There was just a piece on Bloomberg which correlated the net long positions with
the actual oil price,
Graphically the long positions showed huge increase correlating with the recent rise from $35 to $70. The current projections show much lower longs for year end and a fall in the oil price is indicated thereby

The odds must still be on a fall in share price if the bid fails and a profitable purchase opportunity will arise

[o1lman] 19/8/2009 11:33

Or the best time to sell will be, if this current bid fails, when CNA increase their bid and VPC introduce their White Knight, as one thing is certain MW will make sure CNA pay a premium to secure the takeover.

[phillis] 19/8/2009 11:20

It's beginning to look like the optimal time to sell was last night before the close.
If the bid fails the price will probably fall short term and provide profitable rentry level

[sailing john] 19/8/2009 09:41

Results as expected. Drilling campaign impressive
Centrica get a few lines at the end
Nice snub Mike
SJ

[faraway] 19/8/2009 08:58

LONDON -(Dow Jones)- Venture Production PLC (VPC.LN) Wednesday posted a 1.1% fall in net profit for the first half as a big rise in output from new fields offset lower energy prices.

The company, which is subject to a hostile takeover bid from U.K. utility Centrica PLC (CNA.LN), emphasized the strong field development program and financial strength that it says will allow it to continue to thrive as an independent company.

"Our 2009-2010 drilling program has got off to an excellent start this year, with five out of seven wells drilled proving commercially successful, and we have made significant progress in moving our key development projects forward," said Chief Executive Mike Wagstaff.

Venture also has the financial strength to acquire additional assets, Wagstaff said. "Global economic conditions during the second half of 2008 and early 2009 coupled with the fall in commodity prices may provide the catalyst for major (oil companies) to dispose of their non-core North Sea assets," the company said in a statement.

The U.K.-based oil and gas producer said net profit for the six months ended June 30 totaled GBP54.1 million, compared with GBP54.7 million for first half of 2008. Venture's bottom line was affected by a one-off charge of GBP10.8 million related to development costs of the Andrea well and an extra GBP5.2 million in administrative costs from its defense against Centrica's hostile bid.

Total oil and gas production averaged 52,988 barrels a day in the first half, a rise of 16.4% from the first half of 2008. Maintenance shutdowns later in the summer will reduce output in the second half, but the company said it is on track for modest full-year production growth over 2008 levels.

At the end of the first quarter Venture's proven reserves were up 12% on the previous year to 240 million barrels of oil equivalent.

Total revenue for the first half was up 14.2% to GBP274.7 million from GBP240.5 million in the same period of 2008.

Diluted earnings per share were 35.0 pence compared with 35.2 pence in same period a year earlier.

Venture shares closed at 845 pence Tuesday, the same level as Centrica's bid for the company.

[bountyhunter] 19/8/2009 08:24

Revenue:
1999: £1m
2000: £14m
2001: £25m
2002: £53m
2003: £71m
2004: £81.5m
2005: £164.1m
2006: £360.3m, final divi 10p special divi 40p
2007: £358.3m, final divi 12p xd 23/04/08 pay 28/05/08
2008: £494.9m, final divi 13p xd 22/04/09 pay 28/05/09
2009(1st half): £274.7 million vs £240.5 million in the same period of 2008 (up 14.2%)

despite the currently seasonally low gas price (soon to rise according to the uk futures market - )

[bountyhunter] 19/8/2009 08:22

"Total oil and gas production averaged 52,988 barrels a day in the first half, a rise of 16.4% from the first half of 2008. Maintenance shutdowns later in the summer will reduce output in the second half, but the company said it is on track for modest full-year production growth over 2008 levels.

At the end of the first quarter Venture's proven reserves were up 12% on the previous year to 240 million barrels of oil equivalent.

Total revenue for the first half was up 14.2% to GBP274.7 million from GBP240.5 million in the same period of 2008."

[hysteron] 18/8/2009 21:39

845p has failed already IMHO

[o1lman] 18/8/2009 20:48

If the share trades above 845p in the market the games up for CNA, will have to rethink their tactics as the current bid of 845p would fail, IMO.

[phillis] 18/8/2009 20:30

"Centrica requires 50% acceptance on a diluted basis for the offer to go unconditional, although it may decide on a lower acceptance provided this exceeds 50% of the then exercisable voting rights"

Check H's posting of the Offer Doc quote(last sentence):
Centrica reserves the right etc etc

In other words they will do what they feel they need to do