Venture Begins Two Year Southern North Sea Drilling Programme

Venture Production plc ('Venture'), the Aberdeen headquartered UK independent oil and gas production company, today announces that the Noble Julie Robertson ('NJR') jack-up drilling rig has arrived on contract to begin a two year drilling campaign in the southern North Sea.

The drilling campaign covers a balanced mix of development, appraisal and lower risk exploration drilling, principally in and around Venture's 'A' Fields gas production hub. The development and appraisal of two of the company's existing discoveries is expected to bring over 150 Bcf of current undeveloped gas reserves on stream by 2008. In addition, the drilling campaign will target approximately 300 Bcf of additional gas initially in place ('GIIP') through four or five relatively low risk exploration wells.

The first drilling activity will be an appraisal well to confirm reservoir deliverability from the Ensign discovery. Venture holds an effective 50% economic interest in Ensign following the recent sale of an interest to North Sea Gas Partners ('NSGP'). This ninety day appraisal well is expected to precede the submission of a full Field Development Plan ('FDP') with first gas anticipated in 2008.

The NJR will then drill a sidetrack of the Amanda discovery well to further appraise the reservoir ahead of field development. The rig will go on to drill the nearby Agatha exploration well, which is anticipated to be completed by mid-2007. In either case, if successful, the wells will be tied back to the existing Alison subsea production manifold with first production potentially in Q4 2007. As a result of the recently announced farm-out to NSGP, Venture has an effective economic interest of 66.67% in both Amanda and Agatha but its contribution to drilling costs will be restricted to 33.33%.

Following these activities the rig will move on to target the Channon, Adele and Block 48/15b exploration wells. These are lower risk opportunities within Venture's asset portfolio each well is located close to exiting production infrastructure.

Finally, the rig will return to drill and complete the Ensign production wells ahead of producing first gas in 2008.

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

"Given delays with previous operators and the tight market for drilling equipment, we have had to wait several months longer than anticipated for this jack-up rig to arrive. However, the Noble Julie Robertson is on long-term contract to Venture now and we are excited about the drilling programme ahead. This also marks the start of a five year partnership with Noble Corporation during which we have contracts to utilise four of Noble's mobile drilling units. The next two years will see us both continue to develop our existing reserves but also look to add new gas through a series of low risk exploration wells, each of which can be readily tied into existing infrastructure if successful. This continued processing and replenishment of our deep development inventory underpins Venture's sustainable growth."

Enquiries

Notes to Editors

AFields Map

Ensign

Venture acquired a 100% interest in the Ensign field through acquisitions from Shell, Esso and Centrica in 2005 and 2006. The consideration totalled £9.75 million on completion with a further £1.5 million on FDP approval and £2.0 million on production of first gas.
The Ensign discovery has gas initially in place ('GIIP') estimated to be between 300 and 400 Bcf with an anticipated recovery factor of 30 to 50%, based on the performance seen at analogous fields.
The primary purpose of the appraisal well is to test well deliverability from a hydraulically fractured well to help determine the number of development wells required and hence optimal facility design ahead of field development commitment.
The vast majority of GIIP is located in Block 48/14 with the remainder in Block 48/15a.

Amanda and Agatha

The Amanda discovery and Agatha exploration prospect are located in Block 49/11a.
The Venture operated Amanda discovery well (49/11a-9) was drilled and tested in 2003.
Both Amanda and Agatha have estimated GIIP of circa 50 Bcf each.
As Venture has a 33.33% stake in NSGP it will have a combined 66.67% direct and indirect interest in Amanda and Agatha. Venture will report its indirectly held production and reserves in its consolidated figures.
The development concept envisages each subsea well being tied back to the Alison subsea manifold.

Channon

Channon Map

The Channon exploration prospect is located in Blocks 47/3h and 47/8c.
Potential GIIP is more than 100 Bcf and a successful development could be tied in to the nearby Mercury field.
Venture is operator of the Channon exploration well and acquired its 54% working interest in 2005.

Adele

The Adele exploration prospect is located in Block 49/11a, immediately to the east of the Audrey field.
Potential GIIP is more than 50 Bcf and a successful development could be tied in to the nearby 'A' Fields infrastructure.

Block 48/15b

Block 48/15b contains two primary exploration prospects ('A' and 'B') and Venture has 100% of the block.
Each lead potentially has GIIP of around 50 Bcf and it is anticipated that at least one of these will be drilled in the upcoming campaign.
If exploration drilling is successful these would become 2008 developments with tie-back to nearby 'A' Fields infrastructure.

North Sea Gas Partners ('NSGP')

Venture announced the formation of the $300 million North Sea Gas Partners with a group of North American investors led by ArcLight Energy Partners on 18 April 2006.

Key features of NSGP are:

$300 million of commitments: $100 million from Venture with the balance from North American institutional investors.
A template Joint Operating Agreement has been agreed. Venture acts as operator of the jointly held assets in return for an ongoing management fee.
Once certain threshold returns are achieved by NSGP, Venture receives an enhanced proportion of the distributions from NSGP.

Venture Production plc

Aberdeen based, UK independent oil and gas producer, focused on the North Sea.
Listed on the London Stock Exchange with a current market capitalisation of approximately £1 billion.
On 2 August 2006 Venture announced the acquisition of CH4 Energy Ltd from private equity and management shareholders for a combined cash and equity consideration totalling £154 million.
Net average production guidance for 2006 of 41,500 to 43,500 boepd (including contribution from acquisition of CH4 Energy Limited).
Proved and Probable Reserves of 161 MMboe (at 31 December 2005). The acquisition of CH4 Energy Ltd added 30.7 MMboe (at 30 June 2006).

Venture announced its 2006 interim results on 19th September 2006 and its 2005 Annual Report and Accounts may be downloaded from www.vpc.co.uk