RNS Number:4852K
Venture Production PLC
29 April 2003



29 April 2003



                             VENTURE PRODUCTION plc
                   ("Venture", "the Company" or "the Group")

               Venture Announces Acquisition and Operatorship of
                         Greater Kittiwake Area Fields


Venture Production plc, the Aberdeen based UK independent oil and gas production
company, today announces that, together with Dana Petroleum plc ("Dana"), it has
entered into agreements in principle to acquire the producing Kittiwake and
Mallard fields and neighbouring development acreage on Blocks 21/12 and 21/13a,
21/17a, 21/18a and 21/19 in the central North Sea.  Together these assets are
known as the Greater Kittiwake Area ("GKA").  Venture and Dana will also acquire
the associated infrastructure for oil storage and offloading via tanker.


The GKA assets, which are at present operated by Shell UK Limited ("Shell") with
Esso Exploration and Production UK Limited ("Esso") as an equal co-venturer,
form a self-contained business unit centred on the Kittiwake platform. With
current estimated Proved and Probable ("2P") gross reserves of 29 million
barrels of oil the acquisition will add a third major 'hub' to Venture's growing
North Sea activities.  The acreage to be acquired also includes a significant
portfolio of development opportunities.


As a result of the acquisition, Venture's current net production is expected to
rise by around 2,500 barrels of oil equivalent per day ("boepd") to an average
of 22,500 boepd.  The total net Proved and Probable ("2P") reserves to be
acquired by Venture are estimated to be 11 million barrels of oil of which 4
million barrels of oil are already developed and producing.


Venture and Dana will each equally acquire from Shell and Esso (the "Vendors")
their interests in a number of licences that include the Kittiwake and Mallard
fields, the Gadwall, Grouse and Goosander discovered but undeveloped satellite
fields, and several undrilled prospects.  In addition, through a separate
transaction, Venture and Dana will equalise their equity holdings across the
entire Greater Kittiwake Area.  Prior to this transaction Venture held a 23.76%
interest in the Mallard field and Dana held a 37.37% interest in the Goosander
discovery with Shell and Esso holding the remaining interests equally between
them.  Venture will become operator of all of the GKA assets, including the
Kittiwake platform and associated infrastructure.  Venture and Dana will each
own 50% interests in the GKA fields, licence interests and associated oil
storage and tanker offloading infrastructure.


At completion, Venture will receive a net total of #2.7M in cash, with an
adjustment for net cashflow from the GKA assets in the period since the
effective date of 1st January 2003.  This "negative consideration" reflects the
transfer of abandonment liability from the Vendors together with adjustments
that take account of the Vendors' differential ownership positions in the
acquired oil storage and tanker offloading infrastructure.


The Kittiwake and Mallard fields are located approximately 100 miles (162km)
east of Aberdeen in 85m water depth.  The Kittiwake platform is a small, late
generation fixed steel structure that houses a fully functioning drilling unit.
It was first brought on stream in 1990 and an experienced team of Shell staff
and contractors currently mans the facilities. The intention is to offer the
majority of offshore personnel the opportunity to remain on the platform after
Venture, as the new operator, takes control.


Commenting on the news, Bruce Dingwall, Venture's Chief Executive, said:


"Acquisition of these interests in the Kittiwake Area is an innovative 'win-win'
solution for all parties.  Today's deal recognises the difference in materiality
thresholds between the majors, such as Shell and ExxonMobil, and the smaller
independents, such as Venture and Dana and is entirely in keeping with the new
behaviours required to maximise the remaining potential of the North Sea.  An
efficient transfer of ownership will facilitate the aggressive development of
the reserves in the Kittiwake Area and also keep a strong team of people working
together on the asset.  Venture will continue the high HSE standards maintained
by Shell as operator on Kittiwake, thus ensuring we continue to provide a safe
and high quality working environment on the platform.



"Assuming operatorship of Kittiwake is another milestone in Venture's expansion.
It is an area we have been involved with for over two years through our
existing interest in Mallard and, given the experience base of our in-house
operations staff, taking over a modern fixed platform is a natural next step in
the Company's evolution.  It follows on from our three successful years as a
North Sea production operator.


"The Kittiwake area will create a third 'hub' for Venture in the UK North Sea
and Venture is committed to working with Dana to develop the GKA assets to their
full potential.  The Venture team are excited about bringing our operating
experience to a new area."


Completion of the acquisition and transfer of operatorship is subject to
finalisation of both legal documentation and commercial and operational
arrangements for oil and gas export.  It is also subject to DTI and other
regulatory approvals and is expected to take place in the fourth quarter of
2003.

                                      ENDS


Contact:


Bruce Dingwall, Chief Executive                       01224 619000
Mike Wagstaff, Finance Director                       01224 619000
Patrick Handley, Brunswick                            020 7404 5959
Eilis Murphy, Brunswick                               020 7404 5959




Notes to Editors:



*    Venture intends to use the services of Petrofac Facilities Management, a
provider of integrated operations and facilities management services in the
North Sea, to manage the day-to-day operation of the Kittiwake production
facilities.  However, in keeping with the Company's business model, all sub-
surface and technical skills required to manage the growth and development of
the acquired assets will be provided in-house.



*    The activity to develop the satellite discoveries, including Goosander, is
expected to commence with the acquisition of a new 3-D seismic survey during
late 2003.  After the results have been processed and reviewed a detailed
development plan will be prepared for further infield drilling on the Kittiwake
field and a series of tie-backs to the Kittiwake platform.  In addition, work to
prolong the life of the Mallard field through the drilling of either a water
injection well or a sidetrack from the existing well will be planned.



*    The infield drilling planned for the producing Kittiwake and Mallard fields
is expected to add between 3,000 and 4,000 bopd net to Venture by 2005/6 over
and above the production expected under the current operator's plan.  This
activity and the planned development of the satellites will postpone cessation
of production over the Kittiwake facilities well beyond the 2005 currently
envisaged.



*    An appraisal well drilled on Goosander in Summer 2001 indicated recoverable
2P reserves of just under 10 million barrels and development of this and the
other satellite discoveries could add between 4,000 and 5,000 bopd net to
Venture within the 2005/6 timeframe.  In addition, the Kaynine and Lightning
prospects provide further future upside potential.



*    An innovative feature of this transaction is the approach taken to
abandonment of the acquired facilities. Shell will retain its share of the
current abandonment liability for Kittiwake and Mallard as well as
responsibility for managing the actual physical decommissioning activity,
whenever that should occur following the extension to end of field life expected
under the new operator. Venture and Dana, the new GKA partners, are in the
process of putting in place the required security for that part of the
decommissioning not covered by Shell


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