Media Information 22nd July 2005 - for immediate use

Venture Acquires Interests in Potential Kittiwake Satellites

Venture Production plc ('Venture'), the Aberdeen based UK independent oil and gas production company, today announces that it has entered into an agreement to acquire interests in two undeveloped discoveries to the east of the Kittiwake platform, which it has operated since late 2003. The interests comprise a 50.00% interest in Block 21/20b containing part of the Christian oil discovery and a 12.88% interest in Block 21/20a (excluding the Cook Field Area) which contains the remainder of Christian and the entirety of the Bligh gas condensate discovery. The interests are being acquired from Esso Exploration and Production UK Limited.

The consideration comprises a cash payment of £575,000 upon completion plus additional payments of (1) £575,000 when first commercial production is achieved from the development of the Christian discovery and (2) £125,000 when first commercial production is achieved from the development of the Bligh discovery.

The Christian discovery lies 7km to the east of the producing Venture operated Mallard field and was discovered in 1990 by well 21/20b-4st2. A successful drill stem test ('DST') was carried out at the time and a production rate of 6,364 barrels of oil per day ('bopd') achieved. Venture estimates that gross recoverable P50 recoverable reserves are 7.1 million barrels of oil equivalent ('MMboe') and that a subsea tie-back to the existing Mallard sub-sea facilities is a feasible development option. Initial gross production rates following successful development are estimated by Venture to be 4,000 to 5,000 bopd. The discovery is currently on the DTI Fallow Discoveries register and, upon legal completion of this acquisition, it is Venture's expectation that the optimal approach to bringing the reserves into production will be developed in conjunction with the operator of Block 21/20b. The Christian accumulation is believed by Venture to straddle both Blocks 21/20a and 21/20b.

The Bligh gas condensate discovery lies to the south east of Christian in Block 21/20b and was discovered in 1995 by the 21/20a-5 well. A DST flowed 2,750 bopd of 45.6º API condensate and 15.4 million standard cubic feet of gas per day ('MMscfpd'). Venture estimates that gross P50 recoverable reserves from either a one or two well development are 10.8 MMboe and that a subsea tie-back to nearby infrastructure is the most likely development solution.

Upon legal completion of both this acquisition and the recently announced acquisition of Amerada Hess' 28.46% interest in Block 21/20a, Venture will hold an approximate interest of 45.7% in the Christian discovery (assuming a 50:50 split of the accumulation between Blocks 21/20a and 21/20b). It will also hold a 41.3% interest in the Bligh discovery, which is assumed to lie wholly in Block 21/20a.

Legal completion remains subject to regulatory and customary DTI and partner approvals.

Commenting on the news, Mike Wagstaff, Chief Executive said:

"These undeveloped discoveries lie very close to the Venture-operated Greater Kittiwake Area production hub and, as such, we have been evaluating them for some time. We now look forward to working with our prospective partners in both new blocks to firm up the best development solutions for both Christian and Bligh. Given our access to drilling rigs and subsea construction vessels, we will be looking to move forward to develop these 'stranded' discoveries in short order. We are delighted to be able to add to our development inventory in this way and also to generate opportunities to further expand Kittiwake, our newest production hub."

Enquiries

Venture Contacts
Mike Wagstaff, Chief Executive 01224 619000
Rod Begbie, Corporate Development Manager 01224 619000

Brunswick Contacts
Patrick Handley, Chief Executive 020 7404 5959
Chris Blundell, Brunswick
Eilis Murphy, Brunswick

Scottish Press
John MacDonald, Weber Shandwick 01224 806600

Notes to Editors

• The map above shows the location of the interests to be acquired (NB : the Cook Field Area is to be separated from the rest of the Block 21/20a and does not form part of the interests).
• The yellow shading indicates blocks that Venture currently has interests in and the red outlined area shows the blocks Venture has agreed with to acquire Esso's interests in.
• Current partners in the two blocks in which Venture is acquiring interests are:

• Venture currently operates 18 field interests in the UK North Sea of which 10 are in production, 7 are undeveloped discoveries and one is an oil field under development (Chestnut).
• In addition, Venture is a partner in the Saturn field currently under development (operated by ConocoPhillips) and in two further non-operated discoveries.
• Upon legal completion of the acquisition announced today Venture will add the following interests to its asset base:

• Completion of the acquisition announced today together with completion of the recently announced acquisition of a package of development assets from Amerada Hess will (i) take the number of undeveloped discoveries in the Venture portfolio to 17 of which 11, or 65%, will be operated and (ii) take Venture's interest in the Christian discovery to approximately 45.7%, assuming a 50:50 split of the accumulation between Blocks 21/20a and 21/20b.
• Current production from Venture's existing UK asset base is in excess of 35,000 boepd and it is anticipated that this will rise to an average of 45,000 boepd during Q4 2005.
• Based on the current development programme, production is expected to increase to 55 - 60,000 boepd by the end of 2006 or early 2007.