2009-08-05-2009-08-01

To purchase development & exploration gas assets in U.K. southern North Sea, gaining 43.8 Bcfg & 700,000 BC 2P.

N.V. Nuon Energy plans to acquire development and exploration gas assets in the U.K. southern North Sea from Aberdeen, Scotland-based Venture Production Plc, for £96.5 million (US$157 million) in cash. The assets include a 15% interest in the Chiswick and Stamford producing gas fields together with a 25% interest in the undeveloped Kew gas discovery. The sale also includes 25% interests in the Battersea and Wandsworth exploration prospects which Venture expects to drill as part of the current southern North Sea drilling program. Venture will continue to operate and hold majority stakes in each of the assets as well as operatorship of the GMA infrastructure through which they export. Proven and probable gas reserves are 43.8 billion standard cubic feet of gas and 700,000 barrels of gas condensate, net to the 15% interests in the Chiswick and Stamford fields that are being sold (8 million barrels of oil equivalent). Production from January through March the fields produced 198,000 barrels of oil equivalent net. In addition, Venture announced the successful appraisal of the Kew discovery and at the end of March Venture was carrying contingent reserves of 8 billion cubic feet or 1.3 million barrels of oil equivalent for Kew, net to the 25% interest being sold. The Chiswick and Stamford fields are expected to produce an average of just over 2,000 barrels of oil equivalent per day in 2009 net and the Kew discovery is expected to be brought on stream once the Battersea and Wandsworth prospects have been drilled. In addition to the partial asset sale, as part of a new gas basin partnership, Nuon has agreed to farm-in to two exploration wells to be drilled in the Greater Morpheus and Andromeda areas, parts of the southern North Sea where Venture plans a drilling campaign that will start in 2010. A disproportionate payment of 60% of exploration well costs will earn Nuon a 30% interest in each of the Greater Morpheus and Andromeda areas. Mike Wagstaff, Venture chief executive, says, "In late 2008…we decided to start shaping our rapidly growing southern North Sea portfolio, potentially through a partial disposal and farm-out in first-half 2009. Our objectives for this process were to manage our exploration risk, release capital for reinvestment in future drilling and development, highlight the value we have unlocked in key assets and bring in a partner who is strategically aligned with us. In Nuon Energy and the package of southern North Sea gas assets included in today's announcement we believe we have identified an ideal gas basin partner and an investment package that we look forward to developing together rapidly over the coming years." Nuon CEO Øystein Løseth says, "With this transaction, we increase our own gas production and thereby strengthen our position in the entire gas chain. The deal concerns interests in several gas fields in varying stages of development, including production, appraisal and exploration. In Venture, we have found a strategic partner with an outstanding track record who will help us achieve our objectives." The effective date is Jan. 1, 2009.