Venture Announces Farm-In to Barbarossa Discovery

Venture Production plc ('Venture'), the Aberdeen headquartered UK independent oil and gas production company, today announces that it has signed and completed an agreement with Nido Petroleum (UK) Ltd ('Nido') and Corsair Petroleum Ltd ('Corsair') to farm-in to the Barbarossa discovery in Block 47/9c in the Southern North Sea. Barbarossa adjoins Venture's Channon exploration prospect in blocks 47/3h and 47/8c.

Barbarossa was discovered by well 47/9b-4 in 1982. In 2004 a Promote licence was awarded to Nido and Corsair. EnCore Oil plc ('EnCore') is in the course of acquiring Nido.

A single well development is planned targeting approximately 30-35 Bcf of gross reserves (29-32 Bcf net to Venture). Under the terms of the farm-in deal:

Venture will pay 100% of well costs in exchange for a 90% working interest in License P.1241 (covering Block 47/9c);
Venture will be appointed operator;
Venture has the drilling rig Noble Julie Robertson contracted until the fourth quarter of 2008 and has committed a slot in this programme to drill an appraisal/development well on the Barbarossa discovery. This well is anticipated to be drilled in late 2007 or early 2008.

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

"We are very pleased to have added the Barbarossa discovery to our portfolio of development prospects. This offers Venture the opportunity to high grade the Noble Julie Robertson's drilling programme and potentially to generate development synergies with our Channon exploration prospect. This is a lower-risk opportunity with potential for a further phase of development to be examined. It demonstrates the value that can be added as an efficient development and production operator with access to financial and offshore resources in an expensive market for the acquisition of onstream producing assets. It also demonstrates the effectiveness of the UK Government's promote licensing system in generating drilling on undeveloped 'stranded' discoveries."

Enquiries

Notes to Editors

Barbarossa

Lies wholly within Block 47/9c
Discovered in 1982 by well 47/9b-4 by the British Gas Council
Rotliegend reservoir
Subsequently relinquished and relicensed under Promote terms by Corsair Petroleum Ltd and Nido Petroleum (UK) Ltd in 2004.
First phase of development a single subsea well with likely tie-back to the Mercury platform and onward export to Dimlington.
Targeting 30-35 Bcf of gross reserves.

The Farm-In Agreement

Venture has acquired a 90% working interest in licence P.1241 (covering block 47/9c). The balance is held by Corsair Petroleum Ltd and Nido Petroleum (UK) Ltd (which is in course of being acquired by EnCore Oil plc).

Venture Production plc

Aberdeen based, UK independent oil and gas producer, focused on the North Sea.
Listed on London Stock Exchange with a market capitalisation of approximately £1.2 billion.
Net average production guidance for 2006 of 41,500 to 43,500 boepd (including contribution from CH4 Energy Limited).
Proved and Probable Reserves of 161 MMboe (at 31 December 2005). The acquisition of CH4 Energy Limited added 30.7 MMboe (at 30 June 2006).

Venture will announce its 2006 results in April 2007.