Venture Production increases output 8% year-on-year; profit up 65%
UK-based independent Exploration and Production (E&P) company Venture Production raised its production by 8% year-on-year in the first half of 2008 despite a decline from its North Sea gas fields.
The company posted a 65% rise in profit after tax to 54.7 million and an increase in operating profit of 73% to £122 million (EUR 151.56 million) (see table). This reflected higher production volumes and stronger gas and oil prices, the company said.
The offshore field performance was strong for the first six months of 2008. Venture said average group net daily production for the period was up 8% to 45,534 barrels of oil equivalent/day. An estimated 65% of total group production was from its southern North Sea gas assets. Natural gas accounted for 59% of revenue in the first six months of 2008, compared with 54% in 2007. The average realised gas price for the period was 47 p/th (2007: 30 p/th)
Venture said the main driver behind the increase was the contribution from the two new Chiswick production fields that came on stream in September 2007 and February 2008. Venture’s A fields in the southern North Sea produced a total of 17,814 barrels of oil equivalent/day (boep/d), which was down from the previous year’s 21,564 boep/d. According to Venture, this was an anticipated decrease.
The first new gas expected on stream is the Stamford field which will be tied back to Markham and is due on stream in late 2008. The Barbarossa gas well was successfully tested at a flow rate of 1.13 million cubic metres/day and will be developed along with the adjacent Channon discovery. First gas from Channon and Barbarossa is expected mid-2009. During the second half of 2008, Venture expects to drill two exploration wells from the WHAM Energy acquisition made in 2007 (see ESGM 13.164).
Venture has interests in more than 50 fields in the UK and Dutch sectors of the North Sea, with 18 fields in production. DM
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