The Board of Venture Production plc (Venture) says that it is posting a circular to shareholders (‘Circular’) explaining why it believes shareholders should reject Centrica Resources (UK) limited’s (‘Centrica’) offer.

Mike Wagstaff, Chief Executive of Venture said, “Venture has high quality oil and gas reserves and resources with significant upside potential and a strong operational capability. We have the financial strength and technical expertise already in place to continue to develop the upside within our portfolio.

At a time when North Sea production is declining, our increasing production and track record of being able to unlock ‘stranded’ resources will be of increasing strategic importance. This strategic value is not reflected in the price that Centrica has offered to Venture’s shareholders.

I believe that Centrica’s offer is opportunistic, taking advantage of uncertainty and weakness in the equity and energy markets. The longer-term outlook for energy prices is strong, from which Venture is ideally positioned to benefit.”

John Morgan, Chairman of Venture commented: “Your Board believes that Centrica’s offer substantially undervalues Venture. The offer does not fairly reflect the value of Venture’s reserves, nor the significant going concern value of Venture or the key strategic value that it offers Centrica.

My message to shareholders is clear - do not sell your shares on the cheap to Centrica. Venture is worth substantially more than 845p per share.

Shareholders should not sign any document which Centrica or its advisers send to them."

Tags: Venture Production plc