Venture Production Acquires Further Interest in Pilot Field

Venture Production has entered into an agreement to acquire Eni's interests in Blocks 21/27a (including the Pilot discovery) and 21/27b. This acquisition will take Venture's stake in Pilot from 47.5% to 80%. Venture is the operator of both 21/27a and 21/27b.

The consideration comprises a nominal cash payment on completion.

Pilot is a shallow, heavy oil discovery approximately 41km south of the Venture operated Kittiwake platform. It was discovered in 1989 and to date five exploration and appraisal wells have been drilled. Venture has contracted the Fugro Bucentaur survey drillship to drill a further appraisal well on the Pilot field during summer 2006. If successful the same drillship will drill a further appraisal well into the 28/2-1 discovery in the adjoining block 28/2 (Venture 100%) which was awarded to Venture in the 23rd licensing round in 2005.

Prior to this transaction Venture has recognised 10.1 million barrels of proven and probable reserves (net to Venture) in respect of its existing 47.5% interest in the Pilot discovery. The transaction announced today will add a further 7 million barrels of proven and probable reserves.

Completion remains subject to DTI and other customary regulatory and partner approvals.

Commenting on the news, Mike Wagstaff, Chief Executive of Venture said: "Venture is pleased to have the opportunity to increase our interest in the Pilot discovery. Combined with this year's appraisal drilling programme with the Fugro Bucentaur we see significant scope to refine our reservoir model and add value to these assets in 2006. The viability of heavy oil development has already been demonstrated in the North Sea. With oil prices materially higher than when we acquired our initial interest in Pilot this discovery represents an attractive development opportunity".

Transaction

*   Upon legal completion of the acquisition announced today Venture will hold 80.0%
     of blocks 21/27a and 21/27b. The balance is held by Maersk Oil (UK).

*   The shallow, high quality nature of the reservoir and lack of requirement to flow test
     the well has allowed Venture to contract a survey drillship rather than a conventional
     mobile drilling rig for its two planned summer 2006 wells in this area. In a very tight
     rig market this has allowed Venture to accelerate the timing of these wells and to drill
     them at significantly lower cost than from a rig.

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Posted 06/04/06

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