Venture, Nuon agree gas field farm-ins

Venture Production has entered an agreement with Dutch company N.V. Nuon Energy to sell and farm out a range of non-operated interests in the UK southern North Sea.

Offshore staff

ABERDEEN-- Venture Production has entered an agreement with Dutch company N.V. Nuon Energy to sell and farm out a range of non-operated interests in the UK southern North Sea.

The package comprises:
- 15% of the producing Chiswick and Stamford gas fields
- 25% of the undeveloped Kew gas discovery
- 25% stakes in the Battersea and Wandsworth exploration prospects.

Venture plans to drill Battersea and Wandsworth. If successful, both could be tied into the company’s Greater Markham Area infrastructure on the Dutch/UK North Sea median line.

The consideration for the sale package is £96.5 million ($159 million) in cash, with the effective date of the transaction January 1, 2009. Under a new gas basin partnership, Nuon has also agreed to farm into two exploratory wells in the Greater Morpheus and Andromeda areas of the southern sector, where drilling should start in 2010.

Completion of the transaction remains subject to approval by Venture’s shareholders, as the company subject to an offer period, relating to a possible takeover bid by Centrica.

06/19/2009

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