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LONDON (Thomson Financial) - Venture Production Plc, the North Sea oil and
gas producer, said production grew 8 percent to 45,700 barrels of oil equivalent
per day in the first half as new wells in the Chiswick field came on stream.
Output for the year remains on course with its guidance of 50,000 boepd,
plus or minus 10 percent, despite the start-up delay in the Chestnut project
which is expected to pump its first oil in the third quarter.
"Timing of first oil from Chestnut clearly remains the principal uncertainty
of second half production performance which in aggregate we expect to be
somewhat higher than the first half and we anticipate average daily production
for 2008 to be within the previously announced guidance range," Venture said in
a trading statement.
Two new Chiswick wells were brought on stream, one in September and the
other in February. Elsewhere, gas production performed ahead of expectations
despite earlier than planned maintenance shutdown at Audrey field in June, with
continued strong performance from the Annabel and Saturn sites, added Venture.
Overall, Venture said it remains "highly confident" in its outlook for 2008
and beyond amid robust energy prices.
"Alongside a favourable outlook for commodity prices this means we can look
forward to operational cashflow generation significantly in excess of levels
anticipated when these projects were sanctioned," it said.
Strong oil and gas prices boosted revenue in the early part of 2008, though
these gains were partially offset by the group's existing price hedge contracts
and long-standing gas sales agreements on the Markham and Audrey/Annabel
projects.
Venture said it will be embarking on another active drilling programme in
the second half, with the Stamford well expected to begin gas production in the
winter of 2008-09.
At 8.12 am, Venture Production shares were up almost 2 percent at 885-1/2
pence.
monicca.egoy@thomsonreuters.com
mbe/vlb
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