The Board of Venture Production urges shareholders not to accept the offer by Centrica Resources (UK) Limited (Centrica) for Venture (the “Centrica Offer”) or to tender or sell their shares to Centrica.

The Board of Venture notes the announcement by Centrica correcting the actual level of acceptances it had received by the first closing date for its offer to a lower level. The Board also notes the announcement that the Centrica Offer has now been cleared by the European Commission under the EC Merger Regulation. Following this ruling the condition relating to the European Commission set out in Centrica’s Offer has now been satisfied.

The Board believes that the Centrica Offer should be seen in the context of Venture’s strong operational and financial performance during the year to date and the recent improvement in both the equity markets and the commodity price environment.

During the first half of 2009 Venture has: - Added materially to its reserves base, with five out of seven gas exploration appraisal wells drilled being commercially successful - Increased production by 16% to 52,988 boepd (first half 2008 - 45,534 boepd) - Demonstrated the attractiveness and value of its portfolio with the conditional agreement to divest certain of its assets to N.V. Nuon Energy at a value which represents US$16.9 per proved and probable barrel of oil equivalent reserves

Since the Centrica Offer was announced on 10 July 2009 the: - FTSE 250 Index has increased by 18.7% - Share prices of Venture’s peer group have increased by an average of 20.6% - Forward oil prices for July 2011 have increased by 13.0%

The Board continues to believe that this opportunistic offer substantially undervalues Venture and that Centrica should pay a higher price for control of the Company. The Centrica Offer does not fairly reflect the value of Venture's reserves - let alone the significant going concern value or the key strategic benefits that the Board believe Venture would bring to Centrica.

The Board urges all shareholders not to accept the Centrica Offer or to tender or sell their shares to Centrica or its advisers.

Tags: Venture Production plc