Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

North Sea operator reports record financial performance

North Sea operator  reports record financial performance
Venture Production, the Aberdeen-based oil and gas operator, has reported a record financial performance in 2008.

Venture Production, the Aberdeen-based oil and gas operator, has reported a record financial performance in 2008.

The company also said yesterday it had made strong underlying progress across all areas of the business, with average daily production up 9% to 45,006 barrels of oil equivalent (boe) from 41,228 in 2007.

It added that it expected modest growth in output this year, thought to mean less than 10%.

Chief executive Mike Wagstaff said: “After a challenging start to 2008, Venture delivered increased production levels which combined with high oil and gas prices resulted in record financial performance; 2008 was a good year if not a great year and has set us up well for growth in 2009 and into 2010.

“We try to be realistic and honest in our outlook and in a very uncertain world we have to be cautious and keep our eyes open. But we have not cut back any planned spending, unlike almost all others, and will be increasing investment to £300million-plus this year.

“We have positioned ourselves well to keep investing through the current cycle, and have got off to a good start in 2009 with two successful southern North Sea gas wells already drilled.”

Mr Wagstaff said that, in addition to generating cash flow from current production, Venture had a strong balance sheet with significant funds to finance its drilling and development programme and to take advantage of acquisition opportunities thrown up by market conditions.

Venture said that at the year-end it had proven and probable reserves of 214million boe, up from 203million a year earlier, and over three years had achieved an average reserve-replacement ratio of 200%, including through acquisitions.

It also noted that, while oil prices had fallen significantly in the second half of 2008, about two-thirds of its production was gas, lessening the impact of oil prices on Venture’s financial performance.

Venture, which is focused on the UK and Dutch sectors of the North Sea, posted pre-tax profits of £184.2million for 2008, up 82% year-on-year. Revenue was 38% higher than the previous year at £494.9million.

Jolyon Robinson, of broker Redmayne-Bentley’s Grampian office, said: “Despite a broker downgrade to ‘reduce’ Aberdeen-based Venture Production closed up 1.4% at 580p.”

He added that shares in oil and gas-sector peer Dana Petroleum also firmed, closing up 2.7% at £10.18.

Recommended for you

More from Energy Voice

Latest Posts