24th January, 2006
VENTURE PRODUCTION plc
Venture Announces DTI Approval of Goosander Field Development
Venture Production plc ("Venture (SES: E1:V03.SI - news) "), the Aberdeen based UK independent oil and gas production company, today announces that the UK Department of Trade and Industry ("DTI") has given its approval for the development of the Goosander oil field located in Block 21/12 within the Greater Kittiwake Area ("GKA"). GKA is a central North Sea oil production 'hub' operated and 50% owned by Venture.
The discovery well on the Goosander field, 21/12-3, was originally drilled in 1998 and tested at 8,200 barrels of oil per day ("bopd"). It was suspended for subsequent re-use and recompletion of the well as a producer is expected to take place in the second quarter of 2006. Subject to initial production performance, drilling of a water injection well to support the producer is planned for 2007.
Goosander will be developed as a sub-sea tie back to the Kittiwake platform utilising a single producer/injector pair of wells. Two pipeline bundles totalling 12 kilometres in length are currently under construction in Wick. The bundles have been designed and engineered to accommodate future production and water injection wells including potential re-use on future subsea tie-backs.
Estimated gross proven and probable recoverable reserves for the field amount to 15.2 million barrels of oil with first production from the field scheduled for Q3 2006.
Commenting on the news, Mike Wagstaff, Chief Executive said:
"Goosander is the latest major incremental project in the GKA hub since Venture took over operatorship in late 2003 and we are very pleased to be able to announce the DTI approval of the field development plan. This is an important milestone in our 2006 delivery programme and we look forward to now bringing the field into production. The GKA business hub is currently delivering over 4,000 barrels of oil per day net to Venture and, with additional contributions from the Gadwall water injector currently drilling and Goosander coming on stream in Q3, we expect to have trebled this production rate by the year end".
ENDS
Contact:
Mike Wagstaff, Chief Executive
Jon Murphy, Chief Operating Officer
Rod Begbie, Corporate Development Manager 01224 619000
Patrick Handley, Brunswick (Stuttgart: 850531 - news)
Chris Blundell, Brunswick (NYSE: BC - news) 020 7404 5959
John MacDonald, Weber Shandwick (Scottish press) 01224 806600
Notes to Editors:
- The base case water flood development is expected to deliver a peak annual average gross oil production rate of approximately 9,500 barrels per day.
- The expected field life is 7 to 10 years, with cumulative production of 15.2 million barrels of oil and 2.6 billion cubic feet of gas (gross). Associated gas from GKA fields is either used to power the Kittiwake platform or spiked into the Fulmar gas line.
- The development of the Goosander field commenced with design and procurement in Q2 2005.
- The drilling and subsea activity is scheduled for Q2 2006 using the Transocean (NYSE: RIG - news) 704 rig that is on hire to Venture through to September 2006.
- First (OTC BB: FSTC.OB - news) oil is anticipated by Q3 2006 with water injection delivered by a new well to be drilled during 2007, subject to satisfactory initial production performance from the depletion phase.
- The Greater Kittiwake Area, including the Goosander field, is jointly owned by Venture Production plc and Dana Petroleum (Berlin: D5H.BE - news) (50% each) and contains the producing Kittiwake, Mallard and Gadwall fields.
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