Venture is a UK independent oil and gas company focused on the UK and Dutch sectors of the North Sea. Venture's strategy involves the acquisition and development of discovered but undeveloped reserves, collectively known as 'stranded' reserves and through operational excellence bringing these reserves into production.
Operational Highlights
• Strong operational performance from all production hubs - in line with expectations
• Record production levels - average production up 80% to 43,572 boepd (first half 2005 - 24,255 boepd)
• 2006/7 UKCS development programme on track - all new wells expected to contribute during 2006 now drilled
Financial Highlights
• Record financial performance driven by higher production levels and realised commodity prices
• Revenue up 230% to £185.4 million (2005 - £56.1 million)
• Pre-tax profit of £97.7 million (2005 - pre-tax loss of £5.9 million)
• Profit for the financial period of £55.9 million (2005 - loss of £2.8 million)
• Operating cashflow £155.5 million (2005 - £3.9 million)
• Total capital expenditure (including acquisitions) of £65.2 million (2005 - £82.3 million) - decrease due to investment timing.
Corporate Development and Outlook
• Acquisition of CH4 Energy Limited for £153 million in August - adds a fourth gas focused production hub
• Four additional asset acquisitions to date in 2006 adding 6.8 MMboe of proven and probable reserves
• Formation of a strategic partnership to pursue southern North Sea gas opportunities, North Sea Gas Partners - initial assets acquired by partnership Average production guidance for 2006 raised to 41,500 - 43,500 boepd - including contribution from CH4 acquisition
Note: All comparatives are with the first half of 2005
Commenting on the results, Mike Wagstaff, Chief Executive of Venture said:
'During the first half of 2006, Venture delivered record operational and financial performance. All of our production hubs performed strongly and, in aggregate, delivered slightly ahead of expectations. Financially, we are reaping the rewards of our intense North Sea development programme over the last two years. Looking forward we are continuing to invest across our expanded base and our development programme remains on track to deliver continued growth through 2006 and beyond.
Venture is progressing through a repeated cycle of investment and production growth which will deliver cashflow and earnings generation irrespective of commodity price volatility. We have assembled a deep inventory for development over the next three years, combined with asset and corporate acquisitions such as the recent CH4 deal, will provide a platform for sustained growth for the foreseeable future.'
Integration in Exploration and Exploitation
London, 21st January
Remain on top of the latest technical developments by attending this free forum.
Seats are strictly limited, so don't miss out!
Presenters
ArkEx, Exprodat, RPS Energy, Ikon Science and more to be announced!
|