Interim Report & Accounts for the six months ended 30 June 2005

Venture is an oil & gas development and production company focused on the UK sector of the North Sea. Venture is an operator which acquires and exploits discovered or proven, but undeveloped reserves collectively termed 'stranded' assets

Operational Highlights

Record production levels - average production up 35% to 24,255 boepd (2004 - 17,969 boepd)
52% of total first half production North Sea gas - over 100 MMcfpd (16,700 boepd) of new gas production added already in 2005
Two new operated developments (Annabel and Gadwall) brought on stream - production from both exceeds expectations
UKCS development programme on track - currently operating three drilling units
Three North Sea acquisitions - adding to long term development inventory
Withdrawal from Trinidad agreed - Venture will be a pure UK North Sea company

Financial Highlights

Strong operating performance in line with expectations
Revenue up 59% to £56.1 million (2004 - £35.2 million) - driven by higher production levels and commodity prices
Underlying operating performance up 118% to £20.1 million (2004 - £9.2 million)
Pre-tax loss of £5.9 million (2004 - pre-tax profit of £5.8 million) impacted by non-cash items:
- IFRS - £16.0 million
- Non-cash foreign currency loss - £6.0 million
Total capital expenditure (including acquisitions) of £82.3 million (2004 - £10.7 million)

Commenting on the results, Mike Wagstaff, Chief Executive of Venture said:

"The first half of 2005 highlighted the impact of Venture's North Sea development programme. This year, production has risen threefold from 13,300 boepd in the first quarter to 40,000 boepd currently, with further growth anticipated for the remainder of this year and into 2006. Both of our key 2005 operated projects, Annabel and Gadwall, came on stream and are producing ahead of expectations. North Sea gas production, now represents over half of Venture's total production, and is set to increase further in the near term. As a result, Venture is well placed to benefit from the current tight UK gas market."

"Our results for the first half of 2005 reflect the strong underlying operating performance of Venture's business, which was in line with expectations. However, our interim accounts were affected by issues relating to the introduction of IFRS and other non-cash adjustments. The effect of the majority of these is expected to unwind in the second half of the year."

"With a broad and diversified asset base, an attractive development inventory and the key long term contracts in place, Venture is set to continue its current growth from delivery of its development programme for the foreseeable future."

For full information on Venture's Preliminary Final Results, download the report here.

Venture has adopted International Financial Reporting Standards (IFRS) with effect from 1 January 2005. IFRS is the required reporting basis for all European Union listed companies from 2005.

Interim Report & Accounts for the six months ended 30 June 2005

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