2009-06-10-2009-05-07-2008-09-01

Acquired WI in 11,000 undeveloped acres in Grayson County, TX.

Venoco Inc., Denver, (NYSE: VQ) acquired working interests in approximately 11,000 undeveloped acres located in Grayson County, Texas, for approximately $5.9 million from an undisclosed seller affiliated with a former member of the company's board of directors. Venoco agreed to drill two horizontal test wells on the acreage by March 2010 to retain the acreage. The seller has the option to participate on a 12.5% working interest basis in any wells the company drills beyond the two test wells. Venoco is required to carry the seller's costs on wells drilled subsequent to the test wells until the company has incurred costs of approximately $5.7 million, net to the seller's 12.5% working interest. If the company has not incurred such costs by September 2011, it will be required to pay seller the difference between $5.7 million and amounts actually incurred, or reassign its interest in the then undeveloped acreage to seller.