Media Information 24th November 2005 - for immediate use

Chestnut Field Development Plan Approval

Venture Production plc, the Aberdeen based UK independent oil and gas production company, today announces on behalf of itself and its partners, Bow Valley Petroleum (UK) Limited and Atlantic Petroleum UK Limited, that the UK Department of Trade and Industry has given its approval for the development of the Chestnut oil field, located in Block 22/2a.

The Chestnut Field will be developed utilising two sub-sea wells tied back to the Sevan Marine SSP300 floating production vessel. The 22/2a-11x well, drilled in 2001 will be re-used along with a new water injection well planned to be drilled during the second half of 2006. The SSP300 will be a newly constructed vessel and is anticipated to be installed in the field during 2007.

Estimated total recoverable reserves for the field amount to between six and nine million barrels, with first production from the field scheduled for the second half of 2007.

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

"We are delighted to receive government approval to develop the Chestnut Field. With recoverable reserves of less than 10 million barrels, this will be one of the smallest stand-alone oil field developments yet in the North Sea. Utilising the Sevan SSP offers a significantly less capital-intensive development solution than either a sub-sea tie-back to a nearby host platform or a conventional ship shaped FPSO. Consequently, the Sevan SSP offers a simple, re-usable, low cost solution which has the potential to lower the threshold for economic development of 'stranded' oil fields in the North Sea."

Enquiries

Venture Contacts
Mike Wagstaff, Chief Executive 01224 619000
Jon Murphy, Chief Operating Officer 01224 619000
Rod Begbie, Corporate Development Manager 01224 619000

Brunswick Contacts
Patrick Handley 020 7404 5959
Chris Blundell 020 7404 5959
Eilis Murphy 020 7404 5959

Scottish Press
John MacDonald, Weber Shandwick 01224 806600

Notes to Editors

• The Chestnut field partners are:
  • Venture Production plc (Operator) - 69.875%
  • Bow Valley Petroleum (UK) Limited - 15.125%
  • Atlantic Petroleum UK Limited - 15.000%
• The Chestnut oil field is located entirely within UKCS Block 22/2a, approximately 13 km south east of the Alba field.
• The Chestnut field was discovered in 1986 and the reservoir is at a depth of approximately 7,000 ft. The field has been appraised by six wells. The last of these, well 22/2a-11x was drilled in 2001 and placed on extended well test utilizing the Crystal Ocean floating production vessel. The well produced approximately 1 million barrels of oil during the test. The well test helped reduced the uncertainty over oil in place and recoverable reserves and confirmed the reservoir deliverability. This production well was suspended and forms the basis of Chestnut field development. A new water injection well will also be drilled as part of the development.

• Sevan Marine ASA is an offshore technology company, which specializes in the market for floating production and storage systems for oil and gas production. Sevan Marine has developed a new, cylinder shaped offshore platform design named the SSP ('Sevan Stabilized Platform').
• The Chestnut SSP is the second unit contracted by Sevan Marine, as Sevan Marine has already entered into an multi-year contract with the Brazilian oil company Petrobras S.A. for the provision of one SSP300 to the Piranema field offshore Brazil, with first oil expected mid-2006.